Posted on 04/26/2006 4:17:15 PM PDT by Conservative Coulter Fan
The cost to produce and deliver gasoline to consumers includes the cost of crude oil to refiners, refinery processing costs, marketing and distribution costs, and finally the retail station costs and taxes. The prices paid by consumers at the pump reflect these costs, as well as the profits (and some- times losses) of refiners, marketers, distributors, and retail station owners.
In 2003, the price of crude oil averaged $28.50 per barrel, and crude oil accounted for about 44% of the cost of a gallon of regular grade gasoline. In comparison, the average price for crude oil in 2002 was $24.09 per barrel, and it composed 43% of the cost of a gallon of regular gasoline. The share of the retail price of regular grade gasoline that crude oil costs represent varies somewhat over time and among regions.
What Do We Pay for in a Gallon of Regular Grade?
Federal, State, and local taxes are a large component of the retail price of gasoline. Taxes (not including county and local taxes) account for approximately 27 percent of the cost of a gallon of gasoline. Within this national average, Federal excise taxes are 18.4 cents per gallon and State excise taxes average about 21 cents per gallon. 2 Also, eleven States levy additional State sales and other taxes, some of which are applied to the Federal and State excise taxes. Additional local county and city taxes can have a significant impact on the price of gasoline.
Refining costs and profits comprise about 15% of the retail price of gasoline. This component varies from region to region due to the different formulations required in different parts of the country.
Distribution, marketing and retail dealer costs and profits combined make up 14% of the cost of a gallon of gasoline. From the refinery, most gasoline is shipped first by pipeline to terminals near consuming areas, then loaded into trucks for delivery to individual stations. Some retail outlets are owned and operated by refiners, while others are independent businesses that purchase gasoline for resale to the public. The price on the pump reflects both the retailers purchase cost for the product and the other costs of operating the service station. It also reflects local market condi- tions and factors, such as the desirability of the location and the marketing strategy of the owner.
Source: http://www.eia.doe.gov
It does no good. People who can't program a VCR, spell the simplest words, or use an e-mail client are economics experts when it comes to gasoline prices.
which in actuality means:
Congress is looking at raising taxes on oil consumers by 27+ percent...
fn thieves!!!!
Around here, we call that the curb boy blues....they know it all and can do it all.
What do the networks do with that windfall profit?
-PJ
For Exxon Mobil, I think you need to add about %0.1 percent for the CEO. That figure gets some people all worked up. But I don't really notice it after the government just raped me for 50 cents/gal.
Not sure where I stand on the tax augument, as this is somewhat a national sales tax. Those who use the roads.. pay for the roads! Eliminate the tax and then it would be necessary to increase other taxes. You know the government is going to get money for the road system from somewhere. If they dont, then many people will be without jobs and would be a staggering blow to the economy.
OTOH, if your position is cut off money from the government and they will waste less, then I am with you on that!
Another link showing what Californians pay
http://www.energy.ca.gov/gasoline/margins/index.html
First, the majority of oil companies do not pay anywhere near the market for oil because they pump the stuff out of the ground, pay the federal government a small royalty and then refine it themselves. Some companies import more than they pump out of the ground, some import very little.
Truthfully, the less a company has to buy at market spot prices, the higher thier profit. Their record profits come from raising their prices to match the market, even if their true average cost was about $35 a barrel.
No matter hou you put it, they are screwing us.
Same, just add $1.44 to the profit side. See my post above.
ping
Source? And what are you including in your use of the term "production"?
Recoverable...at what price?
This is true, after the cost of exploration and setup for drilling and getting the oil in a tanker or pipeline.
Google doesn't tell me what definition you were using. US Offshore finding costs have skyrocketed in recent years, for example. The profit margins of crude production are large, but I was asking about your specifics.
But I definitely understand lacking time for a response! No problem.
And it will be interesting to see if the halt to SPR deliveries will reverse the speculator-driven climb.
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