Gasoline taxes by state:
http://www.energy.ca.gov/gasoline/statistics/gas_taxes_by_state_2002.htmlCost of Gasoline since 1997 when it averaged $1.27 per gallon:
http://www.eia.doe.gov/emeu/international/gas1.htmlCrude Oil prices since 2004:
http://www.energy.ca.gov/oil/statistics/ans_crude_prices.htmlDomestic Crude oil prices since 1994:
http://www.energy.ca.gov/oil/statistics/crude_prices_1st_purchase.htmlMost states gasoline tax is about 50 cents per gallon or less, thus in 1997 gasoline BEFORE TAXES was less than 75 cents a gallon. In 1997 Crude oil prices for oil produced in California was $15.02 per barrel. There are 42 US gallons to a Barrel of oil, but after refining you get 44 gallons of product. The "extra" two gallons is created as you convert heavier crude oil to lighter Gasoline, Diesel/Jet/Kerosenes and other oil products. We can divide the price per gallon by 44, but to be conservative I will use the 42 gallons per barrel of oil.
$15.02 divided by 42 Equal just under 36 cents a Gallon. You than take the before tax price of Gasoline for 1997 (75 cents per gallon) and subtract 42 cents from it you get 33 cents per gallon to cover the cost of refining and distributing Gasoline. The price of 33 cents for the cost of refining and distributing has gone up since 1997, but 33 cents is a rough guide to what those costs are today, given that 1997 was in the middle of the last Oil Glut we had.
Thus out of ANY Gallon of Gasoline you have 50.5 Cents per gallon and 33 cents in distribution costs. Now Distribution costs goes up the more inland you are. I live in Johnstown Pa. Out Gasoline comes from New Orleans by barge up the Mississippi and Ohio Rivers. As you move from New Orleans to Pittsburgh you see the price goes up, do to this additional costs (In addition to higher taxes as you move from the South to the North and then East).
Now in my home town of Johnstown Gasoline is now $3.19 per gallon (it takes about four weeks for well head prices increase to hit your local gas station, eight weeks for price DECREASES, this is the economic concept of "Price Stickiness"). $100/42= $2.38 add 45.1 Cents do to Pennsylvania taxes and 33 cents for distribution costs that adds up to $3.16. Given I am using old data (Distribution cost should have gone up at least 3 cents per gallon since 1997) I am right on the money.
My point is you MUST consider gasoline taxes and the cost of distributing the oil independent of the Crude oil Price. Now I pointed out distribution costs should have gone up since 1997, in the late 1970s when people use of gasoline DROPPED, the states INCREASED gasoline taxes to over come the shortfall do to people using less Gasoline. This will happen again, I fully expect the states in increase Gasoline Taxes. Right now the states have NOT, but it another factor to consider when reviewing Gasoline prices.
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