Input/Output

[Commercialfarmer]

I'm sure one of you in the oil and gas industry knows what the profit is on each gallon of gas sold at the pump. I'd like to see what that compares to the taxes.

No you wouldn't.
Cost of gas = $3.62
Distribution costs = $.078
Crude cost = $2.58
Fees & Taxes = $.78
Refinery cost & profit = $.184


http://energyalmanac.ca.gov/gasoline/margins/

Look at the further breakdown of even distribution cost:

Distribution Costs, Marketing Costs, and Profits: The costs associated with the distribution from terminals to stations and retailing of gasoline, including but not limited to: franchise fees, and/or rents, wages, utilities, supplies, equipment maintenance, environmental fees, licenses, permitting fees, credit card fees, insurance, depreciation, advertising, and profit.

You know that there are steep environmental fees attached to refining and production as well, along with licenses and permits. It would be interesting to know the real take from start to finish that the government get's it's overreaching hands on.

Wonder what the real cost of fuel would be without all the fees and taxes? I bet the world could be fed pretty cheap if our mountain of government and true freeloaders were knocked back to original intentions.

 

[Caustic Burno]

I'm sure one of you in the oil and gas industry knows what the profit is on each gallon of gas sold at the pump. I'd like to see what that compares to the taxes.

No you wouldn't.
Cost of gas = $3.62
Distribution costs = $.078
Crude cost = $2.58
Fees & Taxes = $.78
Refinery cost & profit = $.184


http://energyalmanac.ca.gov/gasoline/margins/

Look at the further breakdown of even distribution cost:

Distribution Costs, Marketing Costs, and Profits: The costs associated with the distribution from terminals to stations and retailing of gasoline, including but not limited to: franchise fees, and/or rents, wages, utilities, supplies, equipment maintenance, environmental fees, licenses, permitting fees, credit card fees, insurance, depreciation, advertising, and profit.

You know that there are steep environmental fees attached to refining and production as well, along with licenses and permits. It would be interesting to know the real take from start to finish that the government get's it's overreaching hands on.

Wonder what the real cost of fuel would be without all the fees and taxes? I bet the world could be fed pretty cheap if our mountain of government and true freeloaders were knocked back to original intentions.

When I left the refinery our target profit was one penny a gallon before taxes.
That was after operating cost of 7 to 8 cents a gallon.
When you are making 22 million gallons a day in one refinery that turns into some cash.
I know the company P&L spread sheet at the end of the year always had the Station-Stores showing the highest profit
of any part of the company.
People stop to get gas and get mad, but are happy to pay a buck and a half for 12 ounces of water and a dollar for a candy bar.

You want to talk about something that burn's my ass when did we all get BSed into paying for a leash.
HeII people can't even talk or think anymore without being tethered to a smart phone they are happy to pay a couple hundred a month for.
They will top that off by paying another 100 bucks or more for TV that has absolutely nothing worth watching on it.
Much less the internet I am on right now, our every thought and movement are being monitored by the government.

 

[TexasBred]

Retailers, especially in chain convenience stores with many stations, set their prices according to Rack Price, which is set by Oil Price and Information Service (OPIS) and that is a replacement cost----what it will cost to replace the fuel in the retailer's tank. A retailer "can" set a higher price (within state price gouging laws) or a lower price than rack price, it doesn't happen very often. Rack Price changes (assuming it doesn't stay the same as the day before) every day at 5:59 pm Eastern time when the New York market closes. Between 9 and 10am the next morning, the Rack Price from the wholesaler to retailer is available to the retailers. That 10am price is frozen for 24 hours.

A lot of business price using replacement cost. It's the only way to cya.

 

[Caustic Burno]

Retailers, especially in chain convenience stores with many stations, set their prices according to Rack Price, which is set by Oil Price and Information Service (OPIS) and that is a replacement cost----what it will cost to replace the fuel in the retailer's tank. A retailer "can" set a higher price (within state price gouging laws) or a lower price than rack price, it doesn't happen very often. Rack Price changes (assuming it doesn't stay the same as the day before) every day at 5:59 pm Eastern time when the New York market closes. Between 9 and 10am the next morning, the Rack Price from the wholesaler to retailer is available to the retailers. That 10am price is frozen for 24 hours.

A lot of business price using replacement cost. It's the only way to cya.

What a lot of people don't get oil is a commodity just like cattle sold to the highest bidder.
Oil from Exxon wells doesn't go to Exxon refineries unless they buy it off the floor.
Two totally separate companies paying the parent company.
I know we always were looking for the cheapest crude at the time happened to be Mayan as very few can run it.
That is only way to increase profit or reduce operating cost as the gasoline is sold as a commodity as well.
Gasoline is fungible product when you pull into Shell you might be getting Valero it has Shell's additive package.
Back in the day we I have traded regular for premium with another refinery to fill an order.

 

[greybeard]

And some oil companies have no retail gas stations at all. Other brands, have no refineries. Exxon sold all it's stations a few years ago as they saw the writing on the wall regarding convenient stores, and did not want to get into the beer, cigarette, and snack business. As far as I know, as of mid-2013, Sunoco has sold all it's crude refineries and is concentrating solely on transportation and retail of finished products. omeone else makes Sunoco gasoline for the Sunoco retailers.

 

[Caustic Burno]

And some oil companies have no retail gas stations at all. Other brands, have no refineries. Exxon sold all it's stations a few years ago as they saw the writing on the wall regarding convenient stores, and did not want to get into the beer, cigarette, and snack business. As far as I know, as of mid-2013, Sunoco has sold all it's crude refineries and is concentrating solely on transportation and retail of finished products. omeone else makes Sunoco gasoline for the Sunoco retailers.

Most would like to be out of refining, super expense to maintain and run.
Regulations out the wazoo as well. They had a two phones and a radio on me with
a placard of all the agencies to be notified in cause of an event. This was at the same time I was up to my
ass in alligators trying to drain the swamp. Kept a quart of Malox on my desk in the company vehicle and my personal
truck.