Question: With oil trading today below $64 per barrel, why am I still paying $2.65 per gallon at my local Turkey Hill?
It’s a gas gas gas
October 24th, 2008 11:08 am · 3 comments
3 comments
Tags: Economy · Oil
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| clanker 10/24/08 11:44 AM | The price of gas is partly determined by refinery production. That's why, when I hear 'Drill, baby, drill', I just chuckle. There was never a shortage of oil while gas prices were skyrocketing. The prices were determined on the comodities market and by the output from refineries. Prices were manipulated in California years ago when an oil company closed down their most efficient refinery in order to tighten supply and keep prices propped up. |
| Mansfield 10/24/08 12:00 PM | Also, crude makes up a certain fraction of the price paid at the pump (less than 50%?). The rest is refining, transport, profits, taxes, ect. This is why the pump price didn't go to $5-6/gallon when crude more than quintupled, and why we likewise don't see such a dramatic decline... |
| solitary 10/24/08 12:16 PM | Darn, I thought this thread was about trials motorcycles. Consider that you're paying 20% or so in taxes, there's a big chunk of the cost. Also, the cost of crude was cut in 1/2 roughly and compared to a few months ago, $2.60 is a little over half when you factor in the taxes (thankfully, in PA this is fixed price), it's about right. edit: better video. |
