Quote:
Originally posted by RawAlex@Sep 27 2004, 10:20 AM
Colin, local prices have much more to do with refinery activity and stock, rather than the actual price of a barrel of oil. For each barrel you get about 20 gallons of gas, plus another 24 gallons of "other petrolium products"... so call it 42% flow through on the price increases, divided by 20.
a $40 barrel @ 42% of price to gas/ 20 gallons = about 85 cents
a $60 barrel @ 42% of price to gas / 20 gallons = $1.26.
and amazingly:
So all other things being equal, the price increase at the pumps should only be about 40 cents per gallon. However, as many government bodies charge tax as a percentage of price, you will see a larger increase than that. If all other things remain the same, $40 gas is about $1.75 per gallon, and $60 gas would be about $2.35 - not as big an increase as you might think.
Florida right now is seeing a major increase as refineries in the gulf are not able to produce as much as before, which creates a market shortage. That pushes the retail price MUCH higher than anything else.
Alex
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Alex, I think you misunderstand. Gas prices at my local pump are DOWN 20 cents, not up. If Kerry is going to play the gasoline price angle what does he have to work with? Prices at the pump are down 20 cents per gallon for the average American since May 21. Now, maybe they'll go back up in a few months as winter comes and the supply decreases but by then it will be too late.
Maybe I misunderstand. What is Kerry's angle NOW? What is the relevance for an election being held in about 5 weeks? Oil at the pump is down 10%.
"Oil prices have risen even though gas at the pump are 10% cheaper than they were 4 months ago, Vote for me!" ?