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https://www.democraticunderground.com/100216824553
posted here - https://www.democraticunderground.com/?com=view_post&forum=1002&pid=16824751
Definitely a "what the market will bear" (although one would need to consider factoring in the reduction of refineries of late).
What I did find while researching, was that CA had a nice breakdown of costs to get the stuff to the pump - https://www.energy.ca.gov/data-reports/energy-almanac/transportation-energy/estimated-gasoline-price-breakdown-and-margins
In fact, they had a nice little table to show the breakdown (below was as of my original post date of 6/22/22 and the link is dynamic so the costs may change each week) -
posted here - https://www.democraticunderground.com/?com=view_post&forum=1002&pid=16824751
in July 2008, the price hit a high of $128.08/bbl - https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=f000000__3&f=m
Yet the average price of gasoline at the time was $4.11/gal - https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=emm_epm0_pte_nus_dpg&f=m
Yet the average price of gasoline at the time was $4.11/gal - https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=emm_epm0_pte_nus_dpg&f=m
Definitely a "what the market will bear" (although one would need to consider factoring in the reduction of refineries of late).
What I did find while researching, was that CA had a nice breakdown of costs to get the stuff to the pump - https://www.energy.ca.gov/data-reports/energy-almanac/transportation-energy/estimated-gasoline-price-breakdown-and-margins
Gasoline Price Breakdown
This page details the estimated gross margins for both refiners and distributors. The term "margin" includes both costs and profits. The margin data is based on the statewide average retail and wholesale price of gasoline for a single day of the week. It is not a seven-day average. The margin provided here is an indicator for the California market as a whole and not for any particular refiner or retailer of gasoline.
The Energy Commission cannot estimate profit margins based on average retail prices and observed wholesale market prices. This is because detailed data on refining and distribution costs, costs paid by approximately 10,000 retail locations, hundreds of wholesale marketers, jobbers, and distributors is not available.
Refiner Margin
Refiner Margin (costs and profits) is calculated by subtracting the market price for crude oil from the wholesale price of gasoline. The result is a gross refining margin which includes the cost of operating the refinery as well as the profits for the refining company.
The price of crude oil is based on the daily market price for crude oil from the Alaska North Slope published in the Wall Street Journal©. The market price of crude oil also includes its own share of costs and profits. In the case of a vertically integrated oil company, the same company that owns and operates the oil field also owns and operates the refinery. Several vertically integrated oil companies operate in California including BP, Chevron, ExxonMobil, and Shell. For simplicity, the refining margins shown are based on producing one barrel of gasoline from one barrel of crude oil. No adjustments are made for other refined products.
This page details the estimated gross margins for both refiners and distributors. The term "margin" includes both costs and profits. The margin data is based on the statewide average retail and wholesale price of gasoline for a single day of the week. It is not a seven-day average. The margin provided here is an indicator for the California market as a whole and not for any particular refiner or retailer of gasoline.
The Energy Commission cannot estimate profit margins based on average retail prices and observed wholesale market prices. This is because detailed data on refining and distribution costs, costs paid by approximately 10,000 retail locations, hundreds of wholesale marketers, jobbers, and distributors is not available.
Refiner Margin
Refiner Margin (costs and profits) is calculated by subtracting the market price for crude oil from the wholesale price of gasoline. The result is a gross refining margin which includes the cost of operating the refinery as well as the profits for the refining company.
The price of crude oil is based on the daily market price for crude oil from the Alaska North Slope published in the Wall Street Journal©. The market price of crude oil also includes its own share of costs and profits. In the case of a vertically integrated oil company, the same company that owns and operates the oil field also owns and operates the refinery. Several vertically integrated oil companies operate in California including BP, Chevron, ExxonMobil, and Shell. For simplicity, the refining margins shown are based on producing one barrel of gasoline from one barrel of crude oil. No adjustments are made for other refined products.
In fact, they had a nice little table to show the breakdown (below was as of my original post date of 6/22/22 and the link is dynamic so the costs may change each week) -
Estimated Gasoline Price Breakdown and Margins
June 13, 2022
Branded | Unbranded
Distribution Costs, Marketing Costs and Profits | $0.56 | $0.56
Crude Oil Costs | $3.00 | $3.00
Refinery Cost and Profit | $1.85 | $1.85
State Underground Storage Tank Fee | $0.02 | $0.02
State and Local Tax | $0.14 | $0.14
State Excise Tax | $0.511 | $0.511
Federal Excise Tax| $0.184 | $0.184
Retail Prices| $6.27 | $6.27
June 13, 2022
Branded | Unbranded
Distribution Costs, Marketing Costs and Profits | $0.56 | $0.56
Crude Oil Costs | $3.00 | $3.00
Refinery Cost and Profit | $1.85 | $1.85
State Underground Storage Tank Fee | $0.02 | $0.02
State and Local Tax | $0.14 | $0.14
State Excise Tax | $0.511 | $0.511
Federal Excise Tax| $0.184 | $0.184
Retail Prices| $6.27 | $6.27
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