Why is the price of motor oil lower then gas?

Question

Oil per barrel is at an all time high. How is it that the same oil used to make gasoline is sold at auto stores and gas stations throughout America (and in other countries) at a consistent price (sometimes at discount), while gas prices rise with the price of oil? This price discrepancy raises another question. Why are the rules that apply to price speculation and market regulation set to early industrialization models? These rules are out dated and need to be revisited to reflect current modern price structures for a global economy - so that when speculators raise the price of gas, they have to raise the price of gas for real tangible reasons, like supply and demand.

Answer 1

Its about a dollar per quart which makes it about the same as gasoline.  Almost all of it that doesn't leak or burn out of the engine is distilled, filtered and re-bottled.

High gas prices are caused by several factors:

The oil and gas industry has no competition because environmental regs are used to prevent entry into, and expansion of, the industry.  When an ENRON gets too frisky, their CEO gets indicted.  No new refineries have been allowed since the 1970s (OMG, it might pollute, so lets keep 70s equipment on-line and in the wind !!)

The Saudi royal family has been the little darling of every administration since JFK and the you can bet every dem and repug know on which side their bread is buttered.

And our fabulous private bank, the Federal Reserve, which charges us interest on the fake paper money it prints is a professional and legal counterfeiter selling money to us every morning of the week and watering down the value of the dollar.  So naturally there is inflation.  (Oh, but food and fuel aren't included in inflationary indices.  And there has been talk that we might be close to a recession for, oh, the last three years.  Well duh, we are in a goddamn recession).