Comments on: What Goes Into the Price of Gas? http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/ personal finance tips, tricks, and commentary Sat, 21 Nov 2009 18:35:25 -0500 http://wordpress.org/?v=abc hourly 1 By: Abdul http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/comment-page-1/#comment-120424 Abdul Mon, 04 Aug 2008 13:32:59 +0000 http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/#comment-120424 Look.. i know you are probably 18 years old and trying to show us you are so smart and witty. The cost of refining hasn't dropped. The PERCENTAGE of a price of gas has just gone down. Costs of distribution could double, but if the cost of material triples, then the % cost of distribution would go down. Try taking a few economics courses first, before amazing us with your wit. re: Wow! That’s interesting. Why have the costs of refining and distribution & marketing dropped? Since gasoline is trucked to retailers in diesel trucks, you’d think the cost of distribution would track the cost of fuel. Comment by Funny about Money — Jun 13th 2008 @ 10:04 am Look.. i know you are probably 18 years old and trying to show us you are so smart and witty.

The cost of refining hasn’t dropped. The PERCENTAGE of a price of gas has just gone down. Costs of distribution could double, but if the cost of material triples, then the % cost of distribution would go down.

Try taking a few economics courses first, before amazing us with your wit.

re:
Wow! That’s interesting. Why have the costs of refining and distribution & marketing dropped? Since gasoline is trucked to retailers in diesel trucks, you’d think the cost of distribution would track the cost of fuel.
Comment by Funny about Money — Jun 13th 2008 @ 10:04 am

]]> By: Fran http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/comment-page-1/#comment-118126 Fran Wed, 25 Jun 2008 00:04:53 +0000 http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/#comment-118126 I read an extremely relevant, interesting post on why gas is so expensive the last couple of years, which matches exactly with the graph: http://gaspass.wordpress.com/2008/06/21/what-the-frack-is-going-on-with-the-price-of-gas/ The title of that post really got my attention. It is called, "What the Frack is Going On With the Price of Gas?" The price can be cut in half overnight. It's worth reading... -Fran ... I read an extremely relevant, interesting post on why gas is so expensive the last couple of years, which matches exactly with the graph:

http://gaspass.wordpress.com/2.....ce-of-gas/

The title of that post really got my attention. It is called, “What the Frack is Going On With the Price of Gas?”

The price can be cut in half overnight. It’s worth reading…

-Fran
…

]]> By: Johnny http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/comment-page-1/#comment-117985 Johnny Tue, 17 Jun 2008 15:42:00 +0000 http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/#comment-117985 Tubulus- I seriously doubt it. The tax revenue would simply be squandered on do-nothing social programs that just create do-nothing people. What is needed is for government to back the F off, let business do what it does best: solve problems. Anything the government puts their hands on turns to sh*t. It would be interesting to see the same graph during the early to mid 70's when the Arabs tried to shaft us, and the Carter administration, in their zeal to "do something" implemented price controls, essentially throwing a monkey wrench into market forces, making it unattractive to even refine or sell oil. Tubulus-
I seriously doubt it. The tax revenue would simply be squandered on do-nothing social programs that just create do-nothing people. What is needed is for government to back the F off, let business do what it does best: solve problems. Anything the government puts their hands on turns to sh*t.

It would be interesting to see the same graph during the early to mid 70’s when the Arabs tried to shaft us, and the Carter administration, in their zeal to “do something” implemented price controls, essentially throwing a monkey wrench into market forces, making it unattractive to even refine or sell oil.

]]> By: Tubulus http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/comment-page-1/#comment-117973 Tubulus Tue, 17 Jun 2008 12:37:35 +0000 http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/#comment-117973 Ray - 60% in tax...if only we had that here for the past 20 years! Than maybe we would have raised enough money to have a great rail system like in Europe and wouldn't have to drive everywhere, and we'd be much less bothered by the move in oil. In Europe, the move in oil has had a much smaller effect on gas price (on a percentage basis) than here. Ray –
60% in tax…if only we had that here for the past 20 years! Than maybe we would have raised enough money to have a great rail system like in Europe and wouldn’t have to drive everywhere, and we’d be much less bothered by the move in oil. In Europe, the move in oil has had a much smaller effect on gas price (on a percentage basis) than here.

]]> By: Daniel http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/comment-page-1/#comment-117971 Daniel Tue, 17 Jun 2008 03:27:33 +0000 http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/#comment-117971 <i>"Why have the costs of refining and distribution & marketing dropped?"</i> I'm thinking they haven't. But the PERCENTAGE OF THE TOTAL that they represent HAS dropped, as the cost of unrefined oil has risen. I think that combining dollars and percentages on one graph was a bad idea. “Why have the costs of refining and distribution & marketing dropped?”

I’m thinking they haven’t. But the PERCENTAGE OF THE TOTAL that they represent HAS dropped, as the cost of unrefined oil has risen.

I think that combining dollars and percentages on one graph was a bad idea.

]]> By: Jason http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/comment-page-1/#comment-117969 Jason Tue, 17 Jun 2008 02:09:42 +0000 http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/#comment-117969 Andrew, I'll try to answer your question, but I'm not sure exactly what you mean. Do you mean what % of crude oil goes to gasoline, diesel, kerosene, etc? Andrew,

I’ll try to answer your question, but I’m not sure exactly what you mean. Do you mean what % of crude oil goes to gasoline, diesel, kerosene, etc?

]]> By: nickel http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/comment-page-1/#comment-117968 nickel Tue, 17 Jun 2008 00:30:49 +0000 http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/#comment-117968 dangermike: You have the link to the raw data. Have at it. dangermike: You have the link to the raw data. Have at it.

]]> By: dangermike http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/comment-page-1/#comment-117967 dangermike Tue, 17 Jun 2008 00:21:49 +0000 http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/#comment-117967 This data is presented poorly. The percentages should be multiplied through the absolute price and then assembled into a stacked bar or line graph. That way, the absolute prices of each component would be directly readable and the percentages would be easily inferred by their individual heights with respect to the stacked height of all the components. This data is presented poorly. The percentages should be multiplied through the absolute price and then assembled into a stacked bar or line graph. That way, the absolute prices of each component would be directly readable and the percentages would be easily inferred by their individual heights with respect to the stacked height of all the components.

]]> By: Ray http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/comment-page-1/#comment-117964 Ray Mon, 16 Jun 2008 21:23:18 +0000 http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/#comment-117964 jb: You need to quote your own article: "With oil at its current price of $120 a barrel, tax makes up a good 60% of the pump price of €1.50 litre." 60% in taxes! Pardon me if I don't cry. jb: You need to quote your own article:

“With oil at its current price of $120 a barrel, tax makes up a good 60% of the pump price of €1.50 litre.”

60% in taxes!
Pardon me if I don’t cry.

]]> By: Andrew D http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/comment-page-1/#comment-117961 Andrew D Mon, 16 Jun 2008 20:05:55 +0000 http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/#comment-117961 It would be very interesting to know what the "cost" breakdown is for the "crude oil" component; right now that number is the delivered cost to the refinery. But what goes into that number -- the largest by far? What does production of crude oil 'cost' - and who gets that money? It would be very interesting to know what the “cost” breakdown is for the “crude oil” component; right now that number is the delivered cost to the refinery. But what goes into that number — the largest by far? What does production of crude oil ‘cost’ – and who gets that money?

]]> By: Jb http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/comment-page-1/#comment-117959 Jb Mon, 16 Jun 2008 19:25:01 +0000 http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/#comment-117959 And this is what it looks like in central Europe - currently around 9 a gallon http://youmustbefromaway.blogspot.com/2008/05/its-gas.html And this is what it looks like in central Europe – currently around 9 a gallon

http://youmustbefromaway.blogs.....s-gas.html

]]> By: May http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/comment-page-1/#comment-117958 May Mon, 16 Jun 2008 19:03:22 +0000 http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/#comment-117958 I think it's interesting that the cost of gas doesn't include the war we're fighting to get it over here! Add that on and it's about $12 a gallon. I think it’s interesting that the cost of gas doesn’t include the war we’re fighting to get it over here! Add that on and it’s about $12 a gallon.

]]> By: Jason http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/comment-page-1/#comment-117936 Jason Sat, 14 Jun 2008 02:42:09 +0000 http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/#comment-117936 These numbers are pretty typical. I've seen similar charts before at work (I'm a chemical engineer at a midsized independent refinery). We don't have any production, so we have to buy all of our oil and have it shipped in thru pipelines. The Exxon's of the world are making a lot of their money in production, not the sale of gasoline. Diesel makes more money than gasoline for most refineries due to the higher selling price. These numbers are pretty typical. I’ve seen similar charts before at work (I’m a chemical engineer at a midsized independent refinery). We don’t have any production, so we have to buy all of our oil and have it shipped in thru pipelines.

The Exxon’s of the world are making a lot of their money in production, not the sale of gasoline. Diesel makes more money than gasoline for most refineries due to the higher selling price.

]]> By: Dollar Frugal http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/comment-page-1/#comment-117932 Dollar Frugal Fri, 13 Jun 2008 19:59:24 +0000 http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/#comment-117932 Oh and by the way, Andrew, Brazilians aren't terrorists, either. Oh and by the way, Andrew, Brazilians aren’t terrorists, either.

]]> By: Dollar Frugal http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/comment-page-1/#comment-117931 Dollar Frugal Fri, 13 Jun 2008 19:57:46 +0000 http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/#comment-117931 Corn ethanol is not efficient. Americans are protecting our farmers by using corn ethanol, while there is a much more efficient ethanol out there. We're polluting the environment more than we have to. Brazil uses sugar cane alcohol and gasohol. The process uses the whole plant, instead of just the corn, providing energy to process itself. Sugar is the greatest provider of energy (much more efficient than corn), so it's all pretty intuitive. http://en.wikipedia.org/wiki/Ethanol_fuel_in_Brazil Corn ethanol is not efficient. Americans are protecting our farmers by using corn ethanol, while there is a much more efficient ethanol out there. We’re polluting the environment more than we have to.

Brazil uses sugar cane alcohol and gasohol. The process uses the whole plant, instead of just the corn, providing energy to process itself. Sugar is the greatest provider of energy (much more efficient than corn), so it’s all pretty intuitive.

http://en.wikipedia.org/wiki/E....._in_Brazil

]]> By: Independent George http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/comment-page-1/#comment-117928 Independent George Fri, 13 Jun 2008 18:03:41 +0000 http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/#comment-117928 See also this article in US News about the impact of the <a HREF="http://www.usnews.com/blogs/flowchart/2008/3/10/why-gas-prices-rise-as-the-dollar-falls.html" rel="nofollow">falling dollar on crude prices</a>. See also this article in US News about the impact of the falling dollar on crude prices.

]]> By: Andrew http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/comment-page-1/#comment-117927 Andrew Fri, 13 Jun 2008 17:32:35 +0000 http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/#comment-117927 Jack, There are several issues with the Edmund's article. 1.) They used the stock manufacturer's flex fuel technology. The fuel maps, etc, that are in the stock electronics are no where as good as the aftermarket stuff. http://www.change2e85.com 2.) They didn't follow any reccomendations to help improve overall fuel system efficiency like the following. Replacing the filter with a K&N high flow filter, or similar. Replace the spark plugs with higher quality spark plugs to ensure good ignition. Replacing the fuel filter after running a tank of ethanol. The alcohol is going to clean all of the gunk out of the fuel lines and tank, and deposit that stuff in the fuel filter. 3.) Ethanol is very cheap in Indiana, and other midwestern states. www.e85prices.com. Right now there is an over 30% spread between the cost of e85 and gasoline. If I were to go from 15mpg on gasoline to 12 mpg on e85, I'm stills saving money. 4.) I would rather give my hard earned energy dollars to American farmers, than terrorists. Jack,

There are several issues with the Edmund’s article.

1.) They used the stock manufacturer’s flex fuel technology. The fuel maps, etc, that are in the stock electronics are no where as good as the aftermarket stuff.
http://www.change2e85.com

2.) They didn’t follow any reccomendations to help improve overall fuel system efficiency like the following. Replacing the filter with a K&N high flow filter, or similar. Replace the spark plugs with higher quality spark plugs to ensure good ignition. Replacing the fuel filter after running a tank of ethanol. The alcohol is going to clean all of the gunk out of the fuel lines and tank, and deposit that stuff in the fuel filter.

3.) Ethanol is very cheap in Indiana, and other midwestern states. http://www.e85prices.com. Right now there is an over 30% spread between the cost of e85 and gasoline. If I were to go from 15mpg on gasoline to 12 mpg on e85, I’m stills saving money.

4.) I would rather give my hard earned energy dollars to American farmers, than terrorists.

]]> By: Mare http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/comment-page-1/#comment-117926 Mare Fri, 13 Jun 2008 17:18:10 +0000 http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/#comment-117926 Wow that's interesting, thanks for posting that. Wow that’s interesting, thanks for posting that.

]]> By: "Mo" Money http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/comment-page-1/#comment-117925 "Mo" Money Fri, 13 Jun 2008 16:49:21 +0000 http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/#comment-117925 I find this data very interesting especially due to the fact that Congress wants to tax windfall profits from the gas compaines. As I understand it the government both state and federal make more on a gallon of gas than the gas companies do. I find this data very interesting especially due to the fact that Congress wants to tax windfall profits from the gas compaines. As I understand it the government both state and federal make more on a gallon of gas than the gas companies do.

]]> By: Jack http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/comment-page-1/#comment-117923 Jack Fri, 13 Jun 2008 15:38:02 +0000 http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/#comment-117923 Andrew: That move to e85 might just cost you more with the lower MPG you will get. See this story: http://www.edmunds.com/advice/alternativefuels/articles/120863/article.html Andrew: That move to e85 might just cost you more with the lower MPG you will get.

See this story: http://www.edmunds.com/advice/.....ticle.html

]]> By: Andrew http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/comment-page-1/#comment-117921 Andrew Fri, 13 Jun 2008 15:01:22 +0000 http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/#comment-117921 They could atleast throw in some free KY. Unfortunately I was one of the idiots that purchased a new pickup truck with a 26 gallon tank a couple years ago. $100+ for a fillup is highway robbery. How much longer until Congress gets it, and allows drilling off the Florida coast just like the Cubans and Chinese are doing? I'm thinking of switching the vehicle over to e85 (change2e85.com) becuase today it was only 2.67 a gallon in central indiana. They could atleast throw in some free KY. Unfortunately I was one of the idiots that purchased a new pickup truck with a 26 gallon tank a couple years ago. $100+ for a fillup is highway robbery. How much longer until Congress gets it, and allows drilling off the Florida coast just like the Cubans and Chinese are doing? I’m thinking of switching the vehicle over to e85 (change2e85.com) becuase today it was only 2.67 a gallon in central indiana.

]]> By: nickel http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/comment-page-1/#comment-117920 nickel Fri, 13 Jun 2008 14:08:33 +0000 http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/#comment-117920 Yeah, the number on the left can be a bit misleading as they are expressed in percentages. So with the price going up so dramatically, those things could wind up costing more in absolute terms even if they're not as big of a percentage as they used to be. Yeah, the number on the left can be a bit misleading as they are expressed in percentages. So with the price going up so dramatically, those things could wind up costing more in absolute terms even if they’re not as big of a percentage as they used to be.

]]> By: Funny about Money http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/comment-page-1/#comment-117919 Funny about Money Fri, 13 Jun 2008 14:04:32 +0000 http://www.fivecentnickel.com/2008/06/13/what-goes-into-the-price-of-gas/#comment-117919 Wow! That's interesting. Why have the costs of refining and distribution & marketing dropped? Since gasoline is trucked to retailers in diesel trucks, you'd think the cost of distribution would track the cost of fuel. Wow! That’s interesting. Why have the costs of refining and distribution & marketing dropped? Since gasoline is trucked to retailers in diesel trucks, you’d think the cost of distribution would track the cost of fuel.

]]>