Surely you mean 1.75 per gallon.. Not 175.00 per gallon..
Dave
-----Original Message-----
From: owner-land-speed@autox.team.net
[mailto:owner-land-speed@autox.team.net] On Behalf Of R. Denton
Sent: Friday, October 28, 2005 9:36 PM
To: Jim Waldron; land-speed@autox.team.net
Subject: Re: Oil Profit
Jim,
I'm not sure what you are trying to say. Are you justifying the high
prices at the pump? I hope not. I'm at my home in Mexico where gas runs
around $175.00 per gallon and doesn't vhange nor has it changed. I
looked for gas stations that were for sale in the midwest and could find
any other than a two pump rural station in Illinois and it was
$2,000,000. So much for the "pennies-per-gallon theory when discussing
retail profits.
If you go to http://www.gasbuddy.com you will find that retail gas
prices within miles of each other can vary by 60 cents per gallon.
Bob Denton
Guadalajara area, Mexico
-----Original Message-----
From: Jim Waldron <jwaldron47@earthlink.net>
Sent: Oct 28, 2005 4:25 PM
To: land-speed@autox.team.net
Subject: Oil Profit
Did a little cal-q-latn. Figures could be adjusted (i'm probably way
off on some of this) as I don't know the actual sale price of all of
this stuff, but:
Item Gallons Price Total
Chemical feedstock 1.2 gallons 1.2 $0.50 $0.60
refinery gas 1.9 gallons 1.9 $0.00 $0.00
(don't know price)
gasoline 19.5 gallons 19.5 $2.50 $48.75
kerosine 4.1 gallons 4.1 $2.00 $8.20
diesel fuel 9.2 gallons 9.2 $2.00 $18.40
lubrucants 0.5 gallons 0.5 $4.00 $2.00
(wish I could buy motor oil at $1/qt)
fuel oil 4.1 gallons 4.1 $2.00
$8.20
bitumen 1.3 gallons 1.3 $0.00 $0.00
(don't know price)
LPG 1.9 gallons 1.9 $2.00
$3.80
Cost per Barrel --------$60.00 $89.95 Sale
price
$29.95 Gross Profit
33.30%
Gross profit is before cost of refining, distribution, and retail.
General business practice says around 30% (for large industries) is
necessary on the gross side to make a net of a few percentage points.
'Course, if you only make a penny net on each gallon and sell enough
gallons........
Thanks,
Jim W.
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