kellyann1293 Wrote:

Danno Wrote:

just_us Wrote:

Danno Wrote:If you figure a cost of $80 per barrel that equals a cost of about $1.90 per gallon for the cost of the crude out of the ground. Add refiner, transportation, marketing, retail profit costs of about $.55 cents per gallon and taxes of about $.47 per gallon and the price is closer to $2.92 per gallon. Oh, I forgot the special formulation for Chicago so add a few more cents and you get $3.00 a gallon.

The $1.90 per gallon already has all the costs built into it.... or you looking to double your profits?
Todays closing 10/15/2008 (Nymex Crude Future), oil price dropped to $73.23. That equates a gallon of gas should be "about" $1.98 here in Waukegan. This $1.98 includes the NORMAL cost of living increase over the past 6 months. About 6 months ago, when oil was just under $80 a barrel, gas here was $1.79 gallon. (All prices quoted are for Regular grade, not Premium)

And DANNO, the pump price always includes all the extraction, raw oil delivery, refineing, raw gas delivery and resale costs, but not you pumping your own fuel. The oil industry has to cut costs somewhere.

A barrel of CRUDE OIL is 42 gallons. $80.00 for a barrel of CRUDE OIL divided by 42 equals $1.904 per gallon of CRUDE OIL. Adding the taxes of $0.47 per gallon to that figure comes to $2.374 per gallon without any refining or transportation costs. Using those figures (even accounting for different tax rates) it would seem that those folks in Texas who are selling gasoline at $2.25 a gallon are paying their customers to buy their gasoline. What am I missing?

A barrel of CRUDE OIL only yields about 20 gallons of gasoline. The stuff left over from refining CRUDE OIL into gasoline is not discarded; rather it is turned into various lubricating oils, other types of fuels, plastics, etc. You can't just divide 80 by 42 to get the cost of raw materials.