On Apr 16, 2006, at 11:47 AM, Paul Stone wrote:
A recent GAO study puts the raw material figure at forty eight percent of the pump price.On Apr 15, 2006, at 11:04 AM, David Ritchie wrote:
Why haven't our gas (petrol) prices doubled? Because the cost of oil is a small percentage of the cost of the final product .
FYI. My father says this is the answer, truer in Europe than here, but still true here. The raw material cost of a gallon of petrol (gas) is still only a small part of the final price. Double the raw material cost and you affect the final price only slightly.
So this would tend to reaffirm that the oil companies are sticking it to us by doubling the gas prices if oil prices skyrocket.
