Oil price since april have averaged around 70 a barrel and a gallon of fuel averaged about 2.65 a gallon. Ok now oil is at 78 a barrel and fuel is at 3 a gallon. Now if my math is corects that is a 10% increase and would be an addional 27 cents. So gas should be 2.92 a gallon at a maximum.
Now there is addional costs to refine fuels. Most of which are a flat amount on a gallon of fuel and shouldn't raise with the price of crude. So fuel shouldn't go up 10%.
Ok here is where the question is:
$70 a barrel the cost of a gallon of crude is $1.28 and a gallon of fuel is $2.65 and has a difference of $1.37 for processing. At $78 a barrel the cost of a gallon of crude is $1.42 a gallon and is $3.00 a gallon of fuel with a difference of 1.58 for processing.
So why is there a 21 cent difference in the refining price? Shouldn't it be the same? Crude oil price only went up 14 cents per gallon. Shouldn't fuel of matched it and not raised above it? So shouldn't fuel should be at 2.79 a gallon
2006-07-17 20:09:53 · 7 answers · asked by calikid79 3 in Cars & Transportation ➔ Other - Cars & Transportation
Ah, you left out "supply and demand". The world is convinced we will be without fuel within months due to the wars, and since now is when most Americans do their vacationing they demand more fuel and believe less is being supplied, and thusly the rates go up...but remember, just because the gas companies are having record profits this year and last, there's no gouging taking place....wow, did you see that? That bolt of lightening almost hit me!! :D
2006-07-17 20:15:52 · answer #1 · answered by L S 2 · 1⤊ 0⤋
I know also (at least in Canada) that alot of tax, ie. road construction is added into the cost of gas. I saw on the news just about a month ago, saying that if you took out all the tax in a litre of gas (what Canucks use/not gallons), it would only cost about 40 some odd cents a litre. But the actual cost of gas in Canada costs about $.95-$1.05 a litre. And like 60% of it is tax imposed by both the Federal and Provincial goverments.
2006-07-18 03:21:06 · answer #2 · answered by C 4 · 0⤊ 1⤋
There is 'Pricing policy' and this is based on demand and supply and also 'what the people can bear'. Due to inflaction when all other commodities have increased that also will have to be matched for refining process. Is it not?
VR
2006-07-18 03:32:45 · answer #3 · answered by sarayu 7 · 0⤊ 0⤋
well it costs money to get the oil to a refinery then it cost money to refine it then it cost money to get it to the station
2006-07-18 15:01:04 · answer #4 · answered by rjm_333 4 · 0⤊ 0⤋
You will drive yourself crazy trying to figure that one out. Why not put all of your thoughts toward trying to figure out how we can do with out it.
2006-07-18 03:17:25 · answer #5 · answered by artpoz 4 · 0⤊ 1⤋
taxes... and revenue.. if your're worried about gas then just get a horse
2006-07-18 03:48:08 · answer #6 · answered by RICK 3 · 0⤊ 1⤋
COS THEY CAN!
2006-07-18 03:45:10 · answer #7 · answered by yahwhoon 4 · 0⤊ 1⤋