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.
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yep the chems industry in the US gulf is getting slaughtered right now.
Crude price is bar far and away the largest component in the cost of gasoline. As for refining capacity, that generally isn't an issue, there is enough capacity on this continent, it's just that it needs to run, when you have a couple refineries down in the same orbit (ie if 2 refineries were down in Edm) then you see 'refining problems'. There hasn't been a refinery built on the continent for 20 years because the capacity is there.