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How much does gasoline/petrol cost in your country?

Corrected for taxes, the price of a gallon of gas in Canada is generally within +/-.10 cents of the average price in the US. What is disturbing about that is Canada pumps enough oil each year to meet not only 100% of it's own needs but also enough to be one of the largest exporters to the US. In short, Canada is exactly in the position many in the US wish the us could be, i.e., able to meet 100% of its energy needs with domestically-produced oil and without the need to import a drop from anyone. And yet the Canadians are paying about the same for a gallon of gas as Americans are. This is because every drop of oil pumped by Canada is sold on the same energy futures markets as every drop pumped in the US, and in most countries, under the same terms.

This is why the notion that increasing US production will lower prices is a myth. Until we get the futures markets under control, prices will always be set by investors and speculators, and not supply and demand issues for oil itself.
 
Good point Bru.

Cranky, don't get me started on "big pharma" and/or the insurance state.

Petro is by far a better investment though. MUCH more stable and predictable.

I wish pharma was, as much as I spend on diabetes meds, I'd sure like to get some of it back.
 
In Central Oklahoma the average as price is $3.24 per gallon. The range is $2.96 for Regular and $3.19 for Premium. Last time I bought 98 octane pure gas (no ethanol) I paid $4 per gallon. But, as long as I can get pure gas I won't buy the ethanol for the MOPAR.

Here's a price map of the US. http://www.oklahomacitygasprices.com/Price_By_County.aspx
 
$3.03 for 87 octane in West Tennessee. It's still robery in my opinion.
 
Cletus said:
About 56% of out fuel price consists of various taxes.
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Cletus that is scumbags for sure

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Bruzilla said:
Corrected for taxes, the price of a gallon of gas in Canada is generally within +/-.10 cents of the average price in the US. What is disturbing about that is Canada pumps enough oil each year to meet not only 100% of it's own needs but also enough to be one of the largest exporters to the US. In short, Canada is exactly in the position many in the US wish the us could be, i.e., able to meet 100% of its energy needs with domestically-produced oil and without the need to import a drop from anyone. And yet the Canadians are paying about the same for a gallon of gas as Americans are. This is because every drop of oil pumped by Canada is sold on the same energy futures markets as every drop pumped in the US, and in most countries, under the same terms.

This is why the notion that increasing US production will lower prices is a myth. Until we get the futures markets under control, prices will always be set by investors and speculators, and not supply and demand issues for oil itself.
Click to expand...

bruzilla read the mc cormick Letter on Oil Industry. The world is willing to pay more for oil then we are plus they pay cash. As you said the Speculators and Investors do influence the price greatly. I for one see these speculators on the financial markets every day. speculators.
 
As someone who is invested in oil companies & products, probably 15% of my investments, I really like the great dividends from the profit, but really hate paying the high price for it, at the pump... sad state of affairs
 
Around here 89 octane mid grade non-ethanol is $4.60 /gal (or more than a dollar over the price of 89 at 10%E). We don't have 93 non-E.

Just enough more painful to make me not run it all the time.

If you structure your investments in petro creatively (read a LOT), you can get them to pay your gas bill.

Mine pay about 30-40% of what I spend at the pump, but I just put that back into my investment account.
Eventually "big oil" will pay me to buy gas from them :)

Right now I'm on a financials buying kick.
JPM is having some PR issues (lowers price), but P/E is only 8 and EPS is 5+.
That scenario makes it awfully attractive, and the 3% div don't hurt, either.

Still a big fan of BP- P/E 5, EPS 8+ (WOW), and still "beat up" from spill and bad press.
5% div is pretty dang attractive, as well.
 
I'm at $1.24.9 per litre for 87 octane. Roughly $4.75 per US gallon for the 87 octane, cheap ****!!
 
Chevron 87 R+M/2 is $3.99. Diesel is $4.39. $.10-.15 cheaper for the cut rate stations.

I'll go along with the thieving bastards but don't know exactly which bastards. Seems many bastards have their hand in the cookie jar, especially the Gov't. Maybe Bruz has it figured out.

It does seem odd that the oil company gets to find it, transport it, refine it and market it and the gooberment just tells them what they can't do and collects the same amount of money.

One comment about the pharma companies. They paid their dues to develop the stuff AND have a giant law suit target on them for every product they sell. I don't think I want to be that high profile.
 
I agree about the pharma lawsuit issues, all it takes is ONE class action or recall and the rep, and stock price go in the toilet for years, sometimes never to return.

That's why I stay away.
 
Budnicks said:
As someone who is invested in oil companies & products, probably 15% of my investments, I really like the great dividends from the profit, but really hate paying the high price for it, at the pump... sad state of affairs
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I just wish someone could explain to me where the initial up-sell money goes to! I've been trying to find that out for years, and can never get an answer.

It costs about $16 to pump, pipe, and receive a barrel of oil from the Gulf of Mexico. That's the cost to maintain rigs, pay workers, keep the lights on, pay for the piping, everything from start to finish. That barrel of oil is sold before it's even pumped as a future, which right now is about $104 a barrel. That means someone is making about $88 on every barrel of oil that's pumped, but who's making it? The oil companies say they aren't, and looking at their financial reports, they're making about 1.5-3% profit, which would be much higher if they were getting that money. The oil companies don't pay for that oil they pump out of the ground, so who's getting that money?
 
Do you really believe a 3% profit?

Who in their right mind would do anything for 3%???

It's tough to do business at 30% !!
 
Bruzilla said:
I just wish someone could explain to me where the initial up-sell money goes to! I've been trying to find that out for years, and can never get an answer.

It costs about $16 to pump, pipe, and receive a barrel of oil from the Gulf of Mexico. That's the cost to maintain rigs, pay workers, keep the lights on, pay for the piping, everything from start to finish. That barrel of oil is sold before it's even pumped as a future, which right now is about $104 a barrel. That means someone is making about $88 on every barrel of oil that's pumped, but who's making it? The oil companies say they aren't, and looking at their financial reports, they're making about 1.5-3% profit, which would be much higher if they were getting that money. The oil companies don't pay for that oil they pump out of the ground, so who's getting that money?
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:iamwithstupid: that's a great question, that I don't have the answers to... "crude oil" isn't anywhere near the finished product, like gas yet or any of the other final products, it costs even much more to refine that "crude", on-top of the cost of the current per barrel spec. world/global market price of oil... I would think the speculators, brokers, stock exchanges, get a big part of the overall cost vs profit, also individual spec. buyers & sellers, greasing corrupt govt. politicians foreign & domestic, multitudes of oil lobbyists, then govt. taxes not one time, but several times over & over every step of it existence, handling, ships/tankers, fuel costs, import fees/export fees, different tariffs & port taxes expenses... I'm pretty sure, a big part is reinvested into research & development, buying land, getting permits, kick backs to fund it & to find more "crude oil" & other costs in the world oil industry/market... Then having dividends paid out to investors, it would be awfully hard to pay out 5% in investors/stocks dividends, on only 3% profit, I think that # is really suspect IMHFO anyway... everyone that handles any oil product, down the line, make their % & a piece of the pie too, it's got to be 50% of the cost of fuel/gas/diesel/kerosene/methanol/Ethanol/etc., then the multitudes of lubricants that are produced, refined, resold, all from the by product of making gasoline/diesel etc.... I wish I knew the whole system better, but I have much better things to do with my spare time & I can't do anything about it anyway, other than vote for officers in the stocks/oil companies, I'm invested in...LOL...
 
The low margin on gas does make sense if you think about it.

Do you care what brand gas you buy? The vast majority of people could care less what brand gasoline they buy. Exxon-Mobil can't really differentiate itself from Chevron or BP, it is really sold on price and lots of companies make the same stuff. Therefore it becomes a commodity.

With China and India's rapidly growing energy needs, supply and demand increase prices. The US now pumps about the same amount of oil as we use, but it is still a world market. If a major production area (anywhere) shuts down due to an issue, then prices will soar. It's the way that it is due to an open market.

Pharma drugs are another matter. Pharma companies spend billions of dollars to try and develop drugs, and when a drug starts clinical trials (meaning the first time they go into humans) the odds are still worse than 1000:1 that the drug will make it to market. Also, the drugs are patented when the compound is discovered, which is way before clinical trials start. If a drug is approved, then the pharma companies have a short window of only a few years to make their profit. If they really have a unique product, the price will go through the roof. Oh, and like Vioxx, there was a guy who ate burgers and crap food, 100s of pounds overweight, took one Vioxx and then at some point had a heart attack. He sued. The drug companies need to make profit with all that bogus lawsuit potential as well.

I work for the pharma industry, and a few years ago they were fat and rich and totally raking in the profits. That is not the case today. The pharma industry today is rapidly shrinking and dying from the prospective of developing new drugs.

I know everyone loves the idea of a cure for cancer that is really cheap, but that is not realistic. We live in a capitalistic society and if a pharma company discovers a great drug, they will force people to spend through the nose for it. But if you have cancer, would you rather have a cure that you have to pay through the nose for, or would you rather not have a cure at all?

What I find interesting in these types of discussions is that no one complains about Apple. Their margins are higher than just about every other business. Why is it OK for them to make so much profit, but not Chevron or Johnson & Johnson?

In my view, it comes down to this: Do you want capitalism and the pro's and con's that go with it, or do you want a totalitarian regime the controls everything (including prices)...
 
$3.89 in the North Bay today. It irks me when we pay so much more for gas where I live, and yet I can actually see the Chevron refinery across the bay in Richmond.

Here's my question, since I constantly flirt with the idea of trading up my daily driver (NOT my Mopar) for a diesel... why is diesel fuel more expensive per gallon in the USA? It's cheaper to refine! It's a simpler fuel. My bet is that the price is based on demand and the fact that one can drive farther on a gallon of diesel than gasoline.
 
pabster said:
$3.89 in the North Bay today. It irks me when we pay so much more for gas where I live, and yet I can actually see the Chevron refinery across the bay in Richmond.

Here's my question, since I constantly flirt with the idea of trading up my daily driver (NOT my Mopar) for a diesel... why is diesel fuel more expensive per gallon in the USA? It's cheaper to refine! It's a simpler fuel. My bet is that the price is based on demand and the fact that one can drive farther on a gallon of diesel than gasoline.
Click to expand...

I think that a big part of the reason diesel is more expensive than gasoline is because it's more chemically similar to jet fuel. It's all about demand. I'm not a refinery guy so I don't know the specifics but the way I understand it is that you can adjust the refining process a little to get more diesel/gasoline/jet fuel or whatever, but only by a certain amount. If there's more demand for one product vs another it will cause the market price to adjust accordingly. Maybe there's a refinery worker on the board than can enlighten me further???
 
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