Quote:
Originally Posted by OilersBaby
does the price of a barrell of oil affect the price of gas at the pump? it's going ot be 5 bucks a gallon here, although you guys are paying way more up there due to the taxes. when i moved to cali 8 years ago, it was 2 dollars and something for a gallon (which is 4 litres)
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Yes, but the price of oil is only one thing that affects the pump price. A barrel of oil is sent to the refinery where it is split into several components: diesel, gasoline, kerosene, natural gas, tar, among many other consumer products.
One of the more common reasons cited for the high pump price is the fact that there aren't enough refineries to produce gasoline from the oil that is available.
The high oil price can affect the cost of other products such as plastics and the other products I mentioned, just as well as it does gasoline.