Marchand Chronicles UPDATE: Getting "S-crude" Some More
Plus, I Do Math BadlyIt's now up to $2.659 in some places around here. It fell off this morning, but expect another spike on Thursday. That's usually the pattern.
I also dunced my way through this paragraph from my essay:
Nearly half of the pump price is comprised of the cost of crude oil. Crude recently spiked at over $60 per barrel. There are 42 gallons in a barrel, so of the $2.559/gallon cost in my neighborhood, about a buck-fifty of it was needed just to purchase the crude oil.Do the math: $60/barrel divided by 42 gallons/barrel = $1.42, which is still more than half of $2.559.
The source for my "nearly half" statement is from the Energy Information Administration, which included this handy little chart for the makeup of the price of gas:
(Click to view full-size)
These numbers are, as you can see, old. But take a look at a chart from June 2005:
(EIA)Let's break these percentages down to what they actually mean:
| 2002 | 2003 | June 2005 | Today* | |
| Dist./Mark. | 17.5¢ | 22¢ | 15¢ | 15¢** |
| Refining | 17.5¢ | 23¢ | 39¢ | 41¢** |
| Taxes | 42¢ | 42¢ | 44¢ | 44¢ |
| Crude | 58¢ | 69¢ | $1.18 | $1.57 |
| TOTAL | $1.35 | $1.56 | $2.16 | $2.57 |
*Today gas prices averaged $2.57/gal (from IndianaGasPrices.com) and crude oil averaged $66/barrel (Bloomberg).
**Assuming the Distribution/Marketing percentage of 7% nationwide during June 2005 applies here and now.
As you can see, the distributors and marketers of gas are trying very hard to sell as cheap as possible. Refining costs more following new environmental regulations and existing ones that mandate cleaner gas in the summer. Plus, the price of crude has skyrocketed.
And that's why we're being charged so much.
posted by Marsh @ 2:56 PM
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