Oil X

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Frequently Asked Questions...

How do you estimate the cost of gas based on the price per barrel of oil?

What I was able to come-up with is; Barrel of Oil X .029 = Cost for gallon of gasoline. It is $145 per barrel X .029 = $4.20 I will pay at the pump per gallon of gas.
Is there any better method?

Best Answer...


The price of $145 for a barrel of oil is kind of deceptive. This is a spot price for the best quality crude available. Not all oil is priced at $145. Next, a barrel of oil is 42 gallons. Not all the oil can be refined into gasoline, there is diesel, plastics, solvents and many other products. Some of the refined oil produces 23 gallons (more or less depending on the crude).

Cost for gasoline include refinery cost's, taxes, transportation of the crude to the refinery and then from refinery to the stations.