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Why does the non-renewable resorce gas cost less than your average gallon of milk?

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Why does the non-renewable resorce gas cost less than your average gallon of milk?

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  1. You can't dig a hole and pump milk out of the ground.  And, at the moment, gasoline costs more; the last gallon of milk cost me $1.99, while a gallon of gas was $3.50.


  2. Wow, I'm not sure where my fellow responder lives, but he must be able to smell the cows, because milk in my area costs $3.50 - $4.00 a gallon.  

    Crude oil processing costs are lower than milk costs.  Oil can be pumped by the millions of gallons to a refinery where it's broken down into finished products.  Those finished products can typically be moved to market by pipeline, then tanker truck at about 9000 gallons per station delivery.  This has termendous efficiencies of scale.

    Milk has to be sourced one cow at a time, transported via truck to a cooperative or directly to the dairy, processed into a finished product at a few thousand gallons per batch, then bottled and moved to market in one gallon (or less) units.  

    A milk crate is about 1 cubic foot.  In that crate, you can fit 4 gallon jugs of milk.  That same cubic foot of space in a tanker can hold 7.5 gallons of gasoline, because there are no containers liiting the space usage.  This makes trucking gasoline much cheaper.

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