More fun...
In 1955 oil was a bit less than $3 a barrel and gas was $.30 a gallon
Maintaining that ratio, with oil at $75 a barrel, gas should be $7.50
a gallon.
But it's only $3.30 a gallon.
What am I missing?
Bryan
joseph lance wrote:
> An article in the May 22nd issue of AutoWeek, page 8, gives the following
> data:
>
> A 42 gallon barrel of crude oil yields 44.77 gallons of refined oil (volume
> changes). Of this, 43.9% or 19.65 gallons is gasoline and 22.4% or 10.03
> gallons is diesel/fuel oil.
>
> At $75 per barrel of crude oil,unrefined gasoline costs $1.68/gal and diesel
> is $1.67/gal. Adding the Federal tax (18.4 cents per gallon for gasoline, 24
> cents for diesel) we get:
>
> costs = $1.864/gallon of gas, $1.91/ gallon of diesel
>
> Now add state and local taxes, refining costs, additive costs, transportation
> & storage costs, and profit to get the PRICE we pay at the pump.
>
>
> Lance
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