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I pulled up one example, Exxon Mobile. Their net profit margin is 8.21%. BP is at 4.8%. Meanwhile the average for the S&P 500 is at 12.4%. So if these companies
by pseudo0 4y ago
I pulled up one example, Exxon Mobile. Their net profit margin is 8.21%. BP is at 4.8%. Meanwhile the average for the S&P 500 is at 12.4%. So if these companies decided to operate as non-profits, we'd see maybe a drop from $5.00 gas to $4.80 or $4.70 (assuming the whole discount gets passed on to consumers). Prices were already up before Ukraine thanks to the resurgence of demand post-covid, but it certainly didn't help.
Also, please don't argue via linking obnoxious TikTok-style videos. If you have a point, make it yourself.
- sitkack 4y agoExxon net profit is at an all time high, they don't need to increase supply and reduce prices. I never said they have to operate as a non-profit, what a ridiculous thing to bring into the discussion. https://www.macrotrends.net/stocks/charts/XOM/exxon/profit-margins https://www.macrotrends.net/stocks/charts/XOM/exxon/profit-m...
- pseudo0 4y agoMy point was that major oil companies already operate with low profits relative the the S&P 500, and that even an extreme reduction to 0% profit would not significantly reduce prices at the pump. An 8% profit does not explain gas prices doubling since 2020. Also the "all time" high profits are something like 0.05% above 2018, that language seems like headline clickbait. It might be technically true, but it's rather misleading.