Quote:
Originally Posted by JD
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.
|
Don't mean to nitpic but natural gas doesn't come from a barrel of oil. I'm not an oil man but I'm fairly certain of this.