walesy_5.0 said:
a bit off topic but why does gas go up with peterol? it has nothing to do crude oil! and im a green p plater with a v8 and they will insure you but they ass rape you with the price of insurence!
Yeah it does. When crude oil is refined, bitumen, various oils, diesel, petrol, gas and various other products are all extracted from it. Up untill about 20 years ago LP gas (Liquid PETROLEUM gas) was mostly useless by product that was burnt off. These days it is sold.
Very rough figures, but the costs involved in 1 litre of petrol are about 35c in taxes (varies from state to state), 25-30c in refining, distribution and retail margins and the balance is the cost of crude. A $1 change in a barrel of crude = roughly 1c per litre change at the pump. My guess is the longer term aim for the industry is a oil price at around $30 - $35 per barrel. That makes it worth while for the producers to pull it out of the ground whilst it is at a retail price more acceptable for the retail consumers.
Believe it or not the cause of our current crisis roots back about 10 years ago. 9/11 and the current war on terror are minor influences. If anybody is interested in learning more, perhaps another thread would be appropriate.
All sorts of things are (in part) dependant on the price of crude - almost all plastics, nylons and electronics all have high quantities of parts derived from the black gold.
Reaper