I don't know if you noticed, but gas prices have dropped from a high of $3.19 down to $2.89. The price of a barrel of gasoline is $69.20. Don't feel bad for the oil companies, they are still making a profit of $0.43 per gallon, which is a profit margin of over 17%.
Just wanted to pass that on...
God Bless
Top Of My Head
3 comments:
Those evil Oil companies make 17%. How did you figure that?
Would that be after they pull it out of the ground, pre-process it prior to transporting it, transporting it to the mainland, refine it into one of 72 unique blends required by various local governments, cart it by train to various regional centers, cart it by truck to each and every gas station, pay a driver to pump it into each of the three (or 4 for diesel) tanks for each ocatane, mark it up by 6% to meet minimum markup laws, and then tack on 24% for state & federal taxes.
You are aware milk and orange juice have pretty much cost more per gallon then gas for just about all of history right?
Where is the investigation into Big Milk or Big OJ?
Thanks for posting. On August 7th, I posted a blog that broke down the costs that oil companies face to get that gallon of gas from the oil tanker to the pump.
Please feel free to read it.
thanks!
Nice math - you might need to add the various costs of doing business like storage, real estate, infrastructure building/repairs, oil exploration, employee salaries, benefits, retirement, health insurance, liability insurance for carting around explosive products, marketing, communications, etc.
If they clear 8-10% margin per gallon I would be surprised.
If profit margins are evil, why don't we investigate average profit margins across industries?
You think it costs a movie theatre $5.00 per bucket of popcorn that they sell you for $6.00?
Did the mug you sell on your blog really cost Zazzle $15 to manufacture, before you sell it for $18.95?
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