Monday, March 21, 2005

Price Gauging and Gasoline

Today oil closed at $56.62 a barrel. There are 35 gallons of gasoline in a barrel. Lets do the math. 35 into 56.62 is 1.6177... let's say 1.62 a gallon. Lets add 20% for manufacturing and profit(0.32) and we get $1.94 a gallon. So why is gas no cheaper then $2.03 a gallon? I have seen regular unleaded as high as $2.09. Can anyone say price gauging?
It's more like economic rape if you ask me. I hope gas gets to $50 a gallon, so we are forced to seek other fuel sources. Tell me what you think, and if you drive an SUV you are part of the problem and have no right to bitch!!!

UPDATE: Doing new math using the info at about taxes and what is a barrel of oil, I have come up with new figures. They say a barrel of oil averages 42 gallons not 35, and that only 42% of a barrel is used for gasoline. So at 56.62 a barrel, 23.78 is for gasoline. divide by barrel size and you get 0.5662 a gallon. Add 7% sales tax 0.6058 and the mandatory state .175 a gallon tax and you get .7808 a gallon. Add 20% manufacturing and mark up and you get 0.9369 a gallon. You pay 2.09 on average in Greensboro. The 1.1531 extra is the problem. Where does it go and why? Big oil allowed to get bigger by a big oil guy.
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