The Price of Gas
I bought petrol yesterday. That is gasoline to those of you in CONUS. I went to a Kuwaiti station and filled up my thirsty Ford Expedition I was driving. When I finshed filling it I was astounded at the cost of fuel here. It has just shot up lately!
As you can see in the photo it was KD 3.81 for 63.47 Litres. That comes out to .77 cents per gallon. What the hell is going on here? Last week it was only .73 cents per gallon. What will we do? I did not budget for this at all.
Kind of puts it all inperspective doesnt it? The price of gas is totally artificial. After exploration, drilling, pumping, and refining this is what it really costs. Where is the rest of it going?
As you can see in the photo it was KD 3.81 for 63.47 Litres. That comes out to .77 cents per gallon. What the hell is going on here? Last week it was only .73 cents per gallon. What will we do? I did not budget for this at all.
Kind of puts it all inperspective doesnt it? The price of gas is totally artificial. After exploration, drilling, pumping, and refining this is what it really costs. Where is the rest of it going?
posted by flythemig29 at 6:18 PM
2 Comments:
I am not sure why we always tie the cost of gasoline to a barrel of oils costs because I think it is misleading to make that tie. Having said that I have not been able to find a Petroleum Engineer who will explain how a barrel of oil breaks out. In working in the industry for years I have always been under the impression that benzene is actually a waste product and that in order to get the allotment of benzene for the local economies the refiners have to change the temps in the columns during the refining process and they hate to do that because they loose polymer product which for them is where the money is. At least that is what I have always understood. Hussein is going for his Petroleum Engineering Degree (to add to his Civil P.E.) maybe he can help me understand it better. Then there is the tax issue as well as the speculative market influences. Local price at SAM'S here in FL is 3.97 per US Gal.
In Europe aren't the taxes piled on until it pays for most of their social entitlements?
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