Oil price to Petrol ratio

Submitted: Thursday, Aug 10, 2006 at 16:39

ThreadID: 36664 Views:3209 Replies:5 FollowUps:7

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sootytoo

If the price of crude oil rises 1 dollar per 200ltr drum as is reported then should not the price rise of petrol/diesel be $1.00 divided by 200=$0.005 cents not the 10-16cents we pay each week, because nothing else changes just fear tactics.
I ask all readers to check the value of 1 drum 200ltr crude oil and compare the price rise of petrol.

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Reply By: itsdave - Thursday, Aug 10, 2006 at 16:53

Thursday, Aug 10, 2006 at 16:53

My understanding is that a barrel of oil is not 200 Ltrs, not sure of the amount but someone else may know.
This being the case your theory above would not be correct

Cheers Dave

AnswerID: 188376

Follow Up By: GoneTroppo Member (FNQ) - Thursday, Aug 10, 2006 at 16:55

Thursday, Aug 10, 2006 at 16:55

Dave you beat me by a minute:-0

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Reply By: GoneTroppo Member (FNQ) - Thursday, Aug 10, 2006 at 16:54

Thursday, Aug 10, 2006 at 16:54

There are barrels, drums and big round things however a barrel of oil is a standart measure. See link
en.wikipedia.org/wiki/Barrel_(unit)

AnswerID: 188377

Follow Up By: itsdave - Thursday, Aug 10, 2006 at 16:58

Thursday, Aug 10, 2006 at 16:58

Sorry about that

Just looked at your link makes interesting reading

Dave

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Follow Up By: sootytoo - Thursday, Aug 10, 2006 at 17:51

Thursday, Aug 10, 2006 at 17:51

Sorry,
from link 158.9873 ltr=1 drum or 42 us gal
so 1 ltr petrol so the added value for $1 oil is 0.00628 cents for unleaded.
Thanks Jim

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Reply By: Landie - Thursday, Aug 10, 2006 at 17:20

Thursday, Aug 10, 2006 at 17:20

There are many variable pricing components that go into refining a barrel of oil into petrol.

Some of the considerations are, freight on the oil, refiners margins (what the refinery charges to refine oil into petrol - currently about USD 12 per barrel), the value of the Australian dollar relative to the US dollar.

There is a very complex pricing formula set down by a government agency and usually the price of petrol is lower than the pricing formula due to the marketing discounts that petrol companies use on a day to day basis. I think this is something often overlooked when considering the daily changes in the price of petrol. Let's say the petrol companies priced according to the pricing formula, we'd all be paying a lot more than the current price. What they do is offer discounts during the week, similar to many retailers do, but remove it when there is peak demand, the weekend. Airline companies do it all the time; airfares go up during school holidays for instance. Of the subject slightly though.......

AnswerID: 188380

Follow Up By: kev.h - Thursday, Aug 10, 2006 at 18:19

Thursday, Aug 10, 2006 at 18:19

whoever said one barrel of crude makes the same amount of petrol its a mix of petrol, diesel, heavy fuel oil along with other bi-products and waste you would have to know the breakdown
regards Kev

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Reply By: Barnesy - Friday, Aug 11, 2006 at 09:31

Friday, Aug 11, 2006 at 09:31

I don't have acess to reports from CEO's of multinational oil companies and governments so i can't tell you what's going on.

What i can so though is bring on solar. When solar is up and going it will spill over into the automotive industry. The sooner we have solar powered cars running on electricity the better.

Barnesy

AnswerID: 188475

Follow Up By: Rotty - Friday, Aug 11, 2006 at 10:09

Friday, Aug 11, 2006 at 10:09

Reorts are available for BP at www.bp.com.

From what I understand of the available information the details of operating income and expenses show that for 2004 BP made $17,262,000,000 profit, in 2005 $22,632,000,000 and for the first half year of 2006 $13,323,000,000.

So whilst the cost of crude oil is rising so are the profits of oil companies, they do not make a loss.

Better buy shares in oil companies, they appear to make more money than anything else.

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Follow Up By: Barnesy - Friday, Aug 11, 2006 at 10:25

Friday, Aug 11, 2006 at 10:25

$13 and 1/3 billion for 6 months! Are small biodiesel productions really a threat to them in order to remove tax breaks for companies wanting to use biodiesel?

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Reply By: greydemon - Friday, Aug 11, 2006 at 17:57

Friday, Aug 11, 2006 at 17:57

Back to the drawing board sootytoo, or perhaps back to the calculator - you are out by 100 fold.

I can't see the actual numbers now I have started this reply but it was something like 158 litres per barrel. $1.00 is 100 cents, divide this by 158 and you get 0.6 of a cent, not 0.006. The number you described as 0.006 cents is actuall 0.006 dollars or 0.6 cents

Still a rip-off but as someone else mentioned crude oil doesn't all get converted to petrol.

AnswerID: 188567