I understand how a capped price works, but how do they calculate it? We got a capped price this year of 3.999. What exactly does that mean? How is it related to the price per gallon of oil? Is it $3.99/gallon? I want to understand how it's calculated and how it relates to the price per gallon on my bill.
2007-11-09 02:41:35 · 2 answers · asked by Doreen B 1 in Business & Finance ➔ Other - Business & Finance
Well may you ask ..
A 'capped price' typically means some sort of imposed maximum ... how you apply that to Oil Producer Countries that refuse to sell below the cap is beyond me (send in the Marines, perhaps ??)
NB Oil is sold by the 'Barrel' (42 US gallons) .. .. and (of course) that's before refining (where only about half of it ends up as petrol = see link) costs and Tax is added ...
2007-11-09 03:13:12 · answer #1 · answered by Steve B 7 · 0⤊ 0⤋
you appear to have answered your own question ,capping means what the market will stand before everyone ceases to purchase/ or simply cannot afford it.
2007-11-09 10:49:20 · answer #2 · answered by DENNIS P 5 · 0⤊ 0⤋