Gas Prices dropped in your area ?

[Kevy Baby]

Originally Posted by scaeagles

I'm not usually a conspiracy theorist, but it is bothersome to me that oil has dropped 50% and gas has only dropped 25%.

I have been meaning to do a price of oil vs. price of gasoline comparison. The 50% vs 25% doesn't mean too much in and of itself as gasoline is only one part of a barrel of oil. Also, the cost of gasoline production includes much more than just the raw input material cost.

For example, if the cost of oil represents 50% of the total cost of gasoline, then the numbers make sense. If gas started at $1.00 per gallon, $0.50 of that is crude oil cost, then a 50% reduction would bring the crude oil cost down to $0.25. The other $0.50 stays the same, reducing the total cost of the gasoline to $0.75. This would be a 25% reduction from the starting point of $1.00.

(This info is from one web site, but others corroborate it):

One 42 gallon barrel of crude oil yields:
19.5 gal of gasoline
9.2 gal of distillate fuel oil (Diesel and home-heating oil)
4.1 gal of kerosene-type jet fuel
2.3 gal of residual fuel oil (used in industry and marine)
1.9 gal liquefied refinery gases
1.8 gal coke
1.3 gal asphalt and road oil
1.2 gal petrochemical feedstock
0.5 gal lubricants
0.2 gal kerosene
0.3 other