What is the general formula for l retail gasoline prices vs crude? If crude is $80 how much is 1 gal of gas?

Question

Yes, I understand that federal and state and local taxes are part of it. And that refining has something to do with it. And that inventories will help increase or decrease retail gasoline prices versus spot crude. But in general, is there some relationship? If crude is $40, what will gasoline be versus if crude is $80, assuming taxes are the same. And with crude at $95? Or at $25?

Answer 1

There seems to be little correlation here at silicon valley.  The stations charge high prices and change them every day, even every few hours at my neighborhood.  It drives me bunkers.

Answer 2

its been around 2:45.9 per gal..and 80 dollars doesnt mean 80 gallons....it a 50 dollar question u asked...depending in what state u live in the tax's very... its to fvking high

Answer 3

There is so much that goes into the price of a gallon of gasoline that there's no easy answer to your question.  As a general rule, crude accounts for about 50-55% of the price of gasoline.  The remainder, as you said, goes to refining, taxes, distribution and storage costs.

Refining and seasonality play a huge role in gasoline pricing, as does retail strategy.  How can Chicago, which is supplied mostly by the Wood River refinery outside St. Louis, have some of the most expensive gasoline in the country, while St Louis enjoys some of the cheapest?  The gasoline is coming from the same refinery and pipelining it costs no more than a couple cents a gallon.  That's where retail strategies come into play.  The intense competition in StL doesn't translate to the Chicago market, so retailers make up in high end markets what they lose in low end markets.

Answer 4

It's a big scam.  They have nothing to do with each other, but the oil mfgs. want you to think they do.  

Oil companies make billions each quarter, and since everyone needs gas for their cars, they set the price to whatever they want and we have to take it up the tailpipe.

Answer 5

There seems to be no relationship between the price of a barrel of oil and the retail price of gas.  I've been in the parts and tire business over 50 years and haven't seen the price of tires change much (lots of oil there) and the price of motor oil is pretty stable. Supply and demand works very well there, if the price gets too high, the oil companies know that people will stop changing their oil.  Also, most of us are convinced that oil must be changed at 3000K when, if you are conscience of how you drive, you can extend that to 7 & 10K, at times (my honda went 650K before it died). They get what they can get, and I think they at times go for the shock treatment; go up 60 cents and then we're happy when they come down 20..and then the cycle is repeated..what a rip.

Answer 6

it should work that way but it doesn't. at 60 a barrel over the summer gas was 3.29. now at 96 a barrel gas in 3.09.