approximatey it would cost a 1.79 a gallon. The place I get the gas is $3.02 a gallon where is the other $ 1.23 going?
2006-08-02 04:54:09 · 7 answers · asked by Evey 6 in Business & Finance ➔ Other - Business & Finance
Oil has to be refined before it can be sold as gasoline. Also there is profit for the middlemen and the gas stations.
2006-08-02 04:57:43 · answer #1 · answered by Anonymous · 0⤊ 0⤋
$75 is the price for a barrel of light sweet crude oil, which is not gasoline.
So you have the cost of refining, the cost of transport & distribution - including pipelines or trucks to carry the gas to the station and the costs of building & maintaining stations - and local and federal taxes (which can be quite a bit).
Gets even worse if you live in a state like california which mandate special blends of gasoline to reduce air pollution.
2006-08-02 12:00:13 · answer #2 · answered by JoeSchmoe06 4 · 0⤊ 0⤋
Actually, that $75 dollar price is for a barrel of "light sweet crude" which is a precursor to gas. Then one needs to take into account transportation and refining costs, taxes and of course, profit margin.
2006-08-02 11:58:28 · answer #3 · answered by zzzzzzzzzzzzzzzzzz 4 · 0⤊ 0⤋
the oil companies are hording it for production costs and delivery charges, most likely their pockets.
2006-08-02 11:57:36 · answer #4 · answered by jamz 5 · 0⤊ 0⤋
To shipping and profit
2006-08-02 11:57:24 · answer #5 · answered by christigmc 5 · 0⤊ 0⤋
i think i pay 3.20 or 3.19
2006-08-02 12:42:10 · answer #6 · answered by Anonymous · 0⤊ 0⤋
taxes--- THANKS BUSH!!!
2006-08-02 12:02:18 · answer #7 · answered by megmb3 2 · 0⤊ 0⤋