The truth of the matter is that gross profit margins are increasing as well as raw profit figures. Even if the price of crude doubles, that does not double the taxes and the other component costs of gasoline. Therefore, the price shouldn't double. If the cost of crude was 50% of the cost of gasoline, and the cost of crude doubles, it should only increase the cost by 50%, not double it.
While the street looks at net profit margins, the way to judge a company's actions is by gross profit figures, as discretionary expenses can impact the actual net figure.
Unfortunately, the oil and gasoline commodities markets are broken in that speculation has been able to impact the price adversely. In a competitive model, they should not carry enough clout to upset the price.
