Don't Blame Me, I Voted For Kerry Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Don't Blame Me, I Voted For Kerry

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: American Spirit who wrote (78435)	7/27/2006 7:39:48 PM
From: TimF	Read Replies (1) of 81568

In Venezuela, 11 cents is what gasoline costs per gallon. It is not given away, it is sold at cost. If its sold for 11 cents its not given away, but it also isn't being sold for cost. Even if it was its only relevant to the Venezuelan market. No one outside of Venezuela pays 11 cents per gallon for oil or gasoline from Venezuela. In other third world countries, gas is as low as 50 cents a gallon. Again because its subsidized. All the rest is profit. The costs are not 11 cents or even 50 cents to produce a gallon gasoline, even in countries with the cheapest production of oil and with efficient refineries. The retail cost is that low because of subsidies. But even if the production cost was a fraction of a cent, you don't make a profit when you sell a commodity worth $70 (a barrel of oil) and sell the refined products it produces for less than $70 per 42 gallons. Factor in the fact that you don't get 42 gallons of gasoline from 42 gallons of oil, and that the gasoline is taxed close to 50 cents a gallon, even if the other costs where zero the profit would be far less than you think it is.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next