Wednesday, August 31, 2005

price gouging 2

What We Pay For In A Gallon Of Regular Gasoline (September 2005) Retail Price: $2.90/gallon Taxes - Fees collected on a gallon of fuel that are  paid to the federal, state, or local government.Distribution and Marketing - Products are shipped by  pipeline, stored at terminals, and trucks deliver gasoline and diesel fuel to retail stations.Refiners - process crude oil to make gasoline, diesel fuel,  and other products for sale to retailers and resellers.Crude oil - Domestic and foreign crude oil producers  sell crude oil to refiners for processing.
Source for above graphic

still no succinct answers on exactly what sets the price of oil or gas. most likely market speculation plays a big hand. as for gasoline--obviously this is old data so the prices are off. but the percentages should still be valid. Refinery capacity takes a hit, refinery costs go way up. gasoline prices go way up... gasoline is also traded on the open market so costs, to a certain extent, are set by speculation--just like other commodoties markets. do you blame the jewelery industry if the price of gold goes up?

quoted from an unofficial source:
"What's happening right now is that supply is disappearing. The gas stations have no idea when the next fuel truck is going to come in to fill their reserves, and everyone is hearing the news about gas shortages which makes them want to go out and fill up. The gas stations have no choice but to raise prices to turn people away. If they don't the tanks will be empty and some people will go without gas who could have paid for it. There is a natural rationing taking place. Those who own the extremely scarce resource are rationing it to those who need it the most. "


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