OK.
My question is,
If the retail price of gas was $.30 a gallon in 1955 when oil was $3.00 a
barrel,
why isn't the retail price $7.50 today when oil is $75.00 a barrel?
Were we getting ripped off big time in 1955?
Bryan
joseph lance wrote:
>
> Maybe they're making it up in volume (LOL)
>
> If oil at $75 a barrel results in a gasoline cost of $1.68 per gallon
> before refining cost, transportation & storage costs, profit, and taxes,
> then equivalent cost with oil at $3 a barrel would be $0.067 per gallon
> of gas. Don't confuse the unrefined COST with the PRICE at the pump.
>
> Lance
>
>> 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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