AMERICA(NS) HISTORY LESSON FOR TODAY...TO MAKE A LONG STORY SHORT ON THE SUDDEN DROP IN THE PRICE OF GAS AT (1731 hits)
THE PUMPS IS AN ON GOING INVESTIGATION IN WASHINGTON STATE AS TO WHY THE PRICES OF GAS WENT UP AS THEY DID THE LAST GO ROUND IN THE 1ST PLACE...THE STANDARD EXCUSE OF THE PRICE MUST GO UP WHEN THERE IS ANREFINARY FIRE/ FORCED SHUT DOWN IS BEING INVESTIGATED AS TO IF THERE WAS A F-I-R-E IN THE FIRST PLACE...THE LATEST DROP IN THE PRICES AT THE PUMP IS WHAT IS KNOWN AS A 'COVER-UP' DUE TO THIS ON GOING INVESTIGATION OF PRICE FIXINGS. (S-M-I-L-E)
Mean of Platts Singapore or MOPS is a measure of fuel oil pricing in Singapore. It refers to the mean price of oil traded through Singapore as per the data from Platts, a commodity information and trading company. MOPS typically will have a value referring to its premium over ex-wharf bunker fuel prices. When demand is low and the supply is good, premiums will be low or negative. Conversely, when demand is high and the supply is tight, premiums will be high or positive. Eg: Low sulphur fuel oil (LSFO) MOPS 380 cst +35.
Methodology For Gasoline Fuel Pump Components The components for the gasoline fuel pumps are calculated in the following manner in cents per gallon and then converted into a percentage: Crude Oil – the monthly average of the composite refiner acquisition cost, which is the average price of crude oil purchased by refiners. Refining Costs & Profits – the difference between the monthly average of the spot price of gasoline (used as a proxy for the value of gasoline as it exits the refinery) and the average price of crude oil purchased by refiners (the crude oil component). Distribution & Marketing Costs & Profits – the difference between the average retail price of gasoline as computed from EIA’s weekly survey and the sum of the other 3 components. Taxes – a monthly national average of federal and state taxes applied to gasoline or diesel fuel. It should be noted that the second and third components can vary widely, depending on the time when the components are being calculated. Since there is typically a lag between when the spot price changes to when the retail price changes, the refining costs & profits component and the distribution & marketing costs & profits component can vary from month to month. For example, as prices increase on the spot market, often the retail prices take time to adjust. Thus, at this point in the cycle, the refining costs & profits component (assuming no corresponding increase in crude oil prices) would be relatively large while the distribution & marketing costs & profits component would be relatively small. However, later on, as retail prices “catch-up” with the previous spot price increases, the distribution & marketing costs & profits component would increase while the refining costs & profits component would decrease. 13 responses to What Makes Up the Cost of a Gallon of Gasoline? BY GATEKEEPERTWO ON MARCH 22, 2012 AT 2:30 AM what about the speculators’ contribution to the cost of gas? [link] [reply] BY SAMUEL R. AVRO ON MARCH 22, 2012 AT 9:21 AM The issue of speculators is irrelevant to this particular discussion: The components of the cost of a gallon of gas. These components are crude oil, taxes, marketing, and refining. Whether or not speculation increases the price of one of the components (crude oil) is a separate issue and worthy of discussion in and of itself. Indeed, it’s on my list of topics that will be covered here in the near future, so stay tuned!
[link] [reply] BY MIKE ON MARCH 31, 2012 AT 1:50 PM Speculators drive the price up and conversly drive it down to some extent. To me the more interesting topic is that many things like gas have been taxed already.The largest portion of the price of 1 gallon of gas is the crude oil appox 60-70%. In cnn-money article I read exxon made 40 billion in profit in 2007 a 60% increase from 2004.But they paid 100 billion in taxes and fees. That should speak for it self but what happens w/ out much thinking is this. Companies don’t pay taxes we do. The company will raise the price so they can make a profit. If they can’t make a profit they will go out of business and stop serving there customers. We the consumer pay the 100 billion and the 40 billion and the tax on the gallon of gas of approx .40 cents depending on state. Sorry to say It does not end here or even start here. Every business that uses oil or gas in any way has to increase there prices on their goods and services. Oil is priced in dollars as we de-value the $ in various ways it also increases the price. We politely call this inflation. The people hurt the most are the one who have the least. They pay the increased price and its a higher % of what they have. Lastly lets try to to break out some of the tax a working person has to pay on a gallon of gas from earning it to purchase. we work get our check minus a bunch of tax fed,st etc. our employer paid tax also ,then comes inflation tax, then. oil companies pay tax and royalties, then we pay for fed and st again on every gallon. And after paying all this tax all my life on all these things I have to pay death tax . [link] [reply] BY GATORMAN ON MARCH 22, 2012 AT 8:25 AM This is misleading. This article says the share of the cost from taxes has gone down from 30% to 12%, but taxes haven’t changed, only the total price. 30% of $1.38 is 41 cents. Anyone want to guess what percentage of the price 41 cents is if the price is $3.38? Yeah, it’s 12%. [link] [reply] BY MARK ON MARCH 22, 2012 AT 8:35 AM What the writer is saying it that the price of crude has gone up so much it has minimized the percentage that taxes make. If taxes went to zero, it can only change the price by 12% right now. This infers that taxes do not affect the overall price like they used to. When taxes are 41 cents ou tof $1.38, it is a huge percentage, so gas could have been cut by a third if taxes went to zero. For taxes to stay 30%, they would need to increase along with the crude. Everyone knows they haven’t increased with the crude, so I don’t see how it is misleading. It is more of the case that people without math skills do not understand the math behind it. [link] [reply] BY SAMUEL R. AVRO ON MARCH 22, 2012 AT 9:28 AM Exactly, Mark. I thought I made it clear that “Taxes Are Losing Influence” because “It’s All About the Cost of Crude Oil” now. My point is simply that calls for lower gas taxes won’t bring us back to the good old days when we were paying $1-$1.50/gal, since taxes only account for a 12% share of $3.50+ gas. [link] [reply] BY RUSS FINLEY ON MARCH 23, 2012 AT 12:24 AM This suggests that because everybody across the globe pays roughly the same price for crude, we would all be paying roughly the same price for gasoline if we all had similar taxation. [link] [reply] BY ROBERT RAPIER ON MARCH 23, 2012 AT 11:47 AM There are a number of oil-producing countries, however, that heavily subsidize gasoline consumption. Venezuela is an example, where you can buy gasoline for something like a dime a gallon. RR [link] [reply] BY CHARLES S. OPALEK, PE ON APRIL 10, 2012 AT 5:21 PM First, enough of this nonsense about oil speculators. Anyone who has played the market knows that for every winner there is also a loser. The guy making a killing does so at the expense of a guy losing his shirt. This is a win-lose situation between two parties. Speculators are what stabilize the market – period. Second, if you want to see the price of crude oil plummet overnight, all that needs to be done is for the POTUS to announce (you don’t even really have to do it) that the Oil Depletion Allowance is going to be re-instated and that drilling on Federal lands will be opened to bidding. The price of crude will drop like a rock! [link] [reply] BY MAC ON MAY 9, 2012 AT 3:28 PM “The price will drop like a rock.”
We have not been able to provide our citizens with sufficient home-grown oil for at least 4 or 5 decades. We are “de facto” out of oil………. Drill………… Baby…………. drill………………………… [link] [reply] BY MAC ON MAY 9, 2012 AT 3:54 PM I was just kidding when I said” “Drill, Baby, Drill” At best, it might marginally depress oil prices in the long term. It takes time to bring in new wells. Even in the Baken where they are bringing on new wells every 30-45 days. Gasoline is still a pretty good bargain….. when we consider how much money we spend of our disposable income on video games, bottled water etc.
The problem is: (as I understand it, is that we are eventually going to run out of the stuff)
[link] [reply] BY MAC ON MAY 9, 2012 AT 4:18 PM we are eventually going to run out of the stuff (oil)
We already did “decades ago”
Now what ? [link] [reply] BY MAC ON MAY 9, 2012 AT 4:25 PM “Other Liquids” ????? Taking up the slack for marginal oil Production ? Who would have ever thought ????
[link] [reply]
Monday, June 11th 2012 at 9:30PM
DAVID JOHNSON
this is what i do for a living ,i sell fuel all over the world, so if you need help let me know !
Monday, June 11th 2012 at 10:46PM
DAVID JOHNSON
THANKS, noT THAT i FULLY UNDERSTAND THAT, BUT i CAN STUDY IT AND LEARN SOMETHING. LOL (SMILE)
Thursday, April 10th 2014 at 6:47PM
ROBINSON IRMA
QUESTION...
HAS THERE BEEN A MASS MDEIA BAN ON THIS INFORMATION IN YOUR AREA?!? LOL!!!(SMILE)
Thursday, April 10th 2014 at 6:47PM
ROBINSON IRMA
@David, please explain. (smile)
Thursday, April 10th 2014 at 6:47PM
ROBINSON IRMA
David, this is my main point in posting and asking about if this info was banned in members local area...our gas prices has nothing to do with the price of a barrel of oil...here in Ca. we just went under $.20 a gal over night after years and it has fallen from $3.89 to $3. 85 since yesterday or a few hours ago...3 days ago it was over $4.00 the markets don't work like this...not that I know any thing about the amrkets but I do hear the prices of a barrel of oil. (smile)
Thursday, April 10th 2014 at 6:47PM
ROBINSON IRMA
