The Governor of GA has just suspended all state tax on gasoline...cool!
But then, I don't live in GA anymore...
Rascal
-----Original Message-----
From: owner-dakota-truck@bent.twistedbits.net
[mailto:owner-dakota-truck@bent.twistedbits.net] On Behalf Of
jon@dakota-truck.net
Sent: Friday, September 02, 2005 10:34 AM
To: dakota-truck-moderator@bent.twistedbits.net
Subject: Re: DML: RE: DML Gas Prices
"Aaron Wyse" <awyse@sw.rr.com> wrote:
: From: "droo" <03dakotaCC4.7_4x4@comcast.net>
:> The price of gasoline is based on the price of crude oil. Crude oil is
:> sold to the highest bidder. Just like many many other products we buy.
Our
:> food and even our cars.
:>
: We all really do understand that.. But have you ever mathmatically
compared
: the relationship between the increase in crude oil and the increase at the
: pump.. Refining costs remain the same per gallon ( except during
unforseen
: conditions such as closed refineries) But if the crude goes up 10 cents,
: it'll usually be reflected at the pumps as closer to 30 cents
Yep, plus another thing I have yet to figure out is the price of diesel
as compared to gasoline. One would *think* that they would basically move
in lockstep, based on the crude oil price, but they seem to be quite
independent of each other, and as you say, not necessarily completely
dependent on the price of crude. Sometimes diesel will be cheaper than
gas (it used to be a LOT cheaper), other times it can be $.20/gallon
higher! As far as I can determine, of the amount of crude oil consumed in
the US, gasoline accounts for a tad over 40%, and diesel/heating oil 20%.
So it would seem that diesel is in much less demand than gasoline, plus it
is less refined and thus should cost less to produce. Yet it is quite often
as expensive (or more expensive) than gasoline. This is something that has
puzzled me and unfortunately I just don't know enough about the situation
to be able to explain it. The only thing I can think of is that diesel
consumers are probably less able to be "picky" than gasoline customers.
People who use diesel are truckers, ships, industrial customers, etc. These
are the people who basically *must* buy it or they will imediately go out of
business. It may be that the gasoline companies know they can gouge these
people and there's not a lot they can do. Many consumers of gasoline on
the other hand have the option of purchasing a more fuel efficient vehicle,
driving less, taking alternate means of transportation, etc. That's all I
have been able to come up with so far...
--
-Jon-
.-- Jon Steiger --- jon@dakota-truck.net or jon@jonsteiger.com --.
| '70 Barracuda, '90 Dakota Convertible, '92 Ram 4x4, '96 Dakota |
| '96 Intruder, '96 Kolb FireFly, '99 Cherokee, '01 Ram 3500 |
`----------------------------------- http://www.jonsteiger.com --'
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