MMDad
Lem Putt
Recent oil price threads, combined with Larry's constant insistence on $30 oil, lead me to look into some things.
Oil is around the $90 mark (but dropping today). That's the price for oil that will go in your tank in a few weeks, not today. Todays gas was made from oil that was closer to $100/barrel.
A barrel of oil is 42 gallons but yields 45 gallons of products. 19 gallons of that is gasoline.
$90/barrel ÷ 45 gallons = $2/gallon
Add $0.60/gallon for state and federal taxes = $2.60
Distribution and marketing is about $0.30/gallon = $2.90
Since gas prices lag the futures price, I would guess that this $90 oil will yield gas at $3.25.
That leaves about $0.35 for refining costs (including profit) for the refiner.
Oil is around the $90 mark (but dropping today). That's the price for oil that will go in your tank in a few weeks, not today. Todays gas was made from oil that was closer to $100/barrel.
A barrel of oil is 42 gallons but yields 45 gallons of products. 19 gallons of that is gasoline.
$90/barrel ÷ 45 gallons = $2/gallon
Add $0.60/gallon for state and federal taxes = $2.60
Distribution and marketing is about $0.30/gallon = $2.90
Since gas prices lag the futures price, I would guess that this $90 oil will yield gas at $3.25.
That leaves about $0.35 for refining costs (including profit) for the refiner.
