(click here if chart graphic is not observable)
If as you say crude is 68% of the cost, how much less would it be if they priced off WTIC and not Brent? Look at the refiners. Their profits are soaring on reduced demand because they are pocketing that WTIC Brent spread.
When gas spikes as it is now,, refiners margins are much higher due to the bogus excuse of switching to summer blend and refinery maintenance hence the figure above is not reflective of true costs. When it comes to gasoline, the laws of supply and demand do not apply. There is always a convenient excuse for higher prices.
Thank for the post, Rob. That’s a good point and hope the EIA takes into account.
Note, also, the data are from end of December, so sure refining and distribution is probably up since spiking gas prices. Here is the history:
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Did you notice the refining percentage in Dec 2012? How often do we hear about the unreliability of the Data out of China? How does the EIA arrive at a .08 number for December? Regardless, you know the quote, ; There are lies, damn lies, and then there are statistics. As far as I am concerned, the EIA , like the Dept of Education , and others could just go away and the U.S. would be none the worse… Someone posted a link to Business Insider on a yahoo board specifically to your chart on oversold and overbought. I also read your comments on percentage of disposable income spent on gasoline,. I was surprised because while the price is up, it is my understanding demand in down. Never the less, I thank you for the articles. Gas, nat gas, oil, equity indexes are all of interest to me. I am always looking for well written informative articles and will look forward to more from you .
Reblogged this on This Got My Attention and commented:
Interesting. Taxes are the second largest cost component in gasoline after the cost of crude oil!
Pingback: Chart of the Day: Components of the Gas Price
It is really sad, oil companies do not take advantage with your picture.
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