Silicon Investor (SI) -- The First Internet Community

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.

Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Paul Berliner who wrote (2476)	8/9/2000 11:18:22 AM
From: Paul Berliner	Read Replies (2) \| Respond to of 3536

Ron, it doesnt look like the .184 federal tax is included in the API state motor fuel tax rate table you linked. So I redid the math to account for it if that's the case, and a different story unfolds. The gap between the rise in crude & distillates and pump prices narrows considerably: Now, from high to low excluding the .30 tax and the .184 federal tax, NY regular unleaded prices have gone from a low of about .466 (.95/gallon with taxes) to to a high of about $1.316 ($1.80/gallon with tax), a 'core' rise of 180%. From lowest point to highest point, spot crude oil futures ($10.50 to $34) and gasoline futures (.34 to $1.10) were each up 220%. The NY price excluding the .30 tax and the .184 federal tax is currently around 1.166 ($1.65 with taxes), up from the .466 which = a gain of around 150% off of the early 1999 lows. Spot crude futures are currently around $30 and gasoline futures are at .98 = 190% off the early 1999 lows for both. The NY price excluding the taxes should really be $1.35, a difference of 15% to 20%. You are right as usual Henry! NY regular unleaded prices should have been no higher than $1.98 when crude touched $34 and gasoline futures hit $$1.10. The fully-taxed NY pump prices at this point were only .18, or 10% behind the percent gain in crude & gasoline futures. So what is the reason for the 10% grace??? Competition amongst the gas stations?