If 1 barrel, 42 gallons, of crude yields only 19.5-20 gallons of gasoline, depending on refinery, how is it that gas is only 3$ or so per gallon? I'm sure it cost money to refine, ship, and put in the vehicle and I know there's at least 35-40 Cents a gallon in Federal and State taxes. So 70$/20 is 3.50$ a gallon. Add in profit, taxes, refiner costs etc ect why isn't gas more like 4.50$ a gallon?
What am I missing. Is current 70$ per barrel market a different size barrel, projected value or something else? Is the above 42/20 ratio incorrect?
~Matt
What am I missing. Is current 70$ per barrel market a different size barrel, projected value or something else? Is the above 42/20 ratio incorrect?
~Matt