I saw another article (it might have been on FR yesterday) which talked about the marginal effect of an oil price change on gasoline prices. It looked like the way to calculate the "oil cost" in gasoline is to take the per barrel price and divide by 43.
The the quoted price of $41.38 a barrel means that the oil costs 96.2 cents/gallon of gas. Then add taxes (42 cents/gal in Ohio), shipping expenses, refinery expenses and station expenses.
24 posted on 05/17/2004 6:57:44 AM PDT by KarlInOhio
(Teach a Democrat to fish and he will curse you for not just giving him the fish.)
the marginal effect of an oil price change on gasoline prices...The the quoted price of $41.38 a barrel means that the oil costs 96.2 cents/gallon of gas.
Uh, that is not a marginal effect calculation.
40 posted on 05/17/2004 8:31:10 AM PDT by edsheppa