10-15-2008, 10:27 PM
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.