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Saturday, June 03, 2023 8:15:11 PM
After 1974 "the new oil supplied" cost somewhat more than oil which had preceded it. Let's say $50 rather than $20.
This was a combination of slightly more costly oil and also increasing expense for refineries which could process heavy oil and high sulfur oil.
This oil price increase does not translate into a 2.5 fold increase in finished product price, but rather far less than that.
In fact it's a long term price decline as mammoth crude refineries have replaced refineries less than 10% of their size and economies of scale have worked through the rest of the business as well.
Let's say inflation adjusted retail gasoline has risen from $2.25 a gallon to $3.25
This was a combination of slightly more costly oil and also increasing expense for refineries which could process heavy oil and high sulfur oil.
This oil price increase does not translate into a 2.5 fold increase in finished product price, but rather far less than that.
In fact it's a long term price decline as mammoth crude refineries have replaced refineries less than 10% of their size and economies of scale have worked through the rest of the business as well.
Let's say inflation adjusted retail gasoline has risen from $2.25 a gallon to $3.25
We've run out of other people's Social Security taxes needed to subsidize our low income tax rates.
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