Silly question about gas prices.

[paigeoliver]

How come the price of oil affects the price of gasoline so much, but it barely effects the price of OIL at all?

Gas prices might have tripled in the last five years, but the cheapo oil that used to cost me 79 cents a quart is now 99 cents a quart, and the oil at the gas station that used to be $1.49 is now $1.99.

[HaRuMaN]

That's a good question...   

[TOK]

Supply and demand. I don't think most people would think twice about extending their oil change intervals 2,000 miles if motor oil prices went up.

[abrannan]

Volume.  5 quarts every 3 months is 5 gallons a year.  Compare to 15-20 gallons/week for gasoline.  A refinery that could only produce a day's worth of gasoline in a day could produce a year's worth of motor oil.

You also have competition from synthetics, so inflation in motor oil would just drive folks over to synthetics.  Gasoline has no effective competition at this point, so the price is much more flexible.

[ChadTower]

And since the oil is not a must-buy product, they cannot simply manufacture reasons to increase the price by 100%.

[missioncontrol]

Their trying to claim a gas shortage again in our area......

my guess is the gas stations attempts to raise the prices again since it worked so well last time.......

[SOAPboy]

oddly, gas went DOWN here..

O_o

[ChadTower]

There was an article in my local paper here that showed the price changes. 

The price went UP an average of $.63 during that little crisis. 

The media now claims that the crisis is over and that gas prices have returned to previous levels.

The price has gone DOWN an average of $.08.

That is a net gain of $.55/gallon.

[Stingray]

Oddly, I think that gas is actually a bit cheaper here now than before Katrina. Not that I'm complaining.

-S

[ChadTower]

Ours is still pretty much at Katrina crisis levels, give or take a dime.

[Stingray]

It was $2.75 at the place I usually buy gas this morning. What are you paying in MA?

-S

[ChadTower]

I don't buy very often, but when I drove past this weekend, it was still somewhere over $3.10 but below $3.20.

[Stingray]

I don't buy gas all that often either, I just happened to notice the price as I drove by. I'm still working on the tank I bought for $3.19 over the labor day weekend.

-S

[ChadTower]

Me too, my car is nearing E now, will have to fill it up tonight or tomorrow morning.

My wife's car is the same, I think.

[Daniel270]

BYO Refinery anyone?   

[daywane]

went down to $2:80 today here in KY
sad people are glad to see it.
I have a problem in my mind I need to work out.
I got a email the other day, stating lets buy from gas station X instead of station y.
said one station did not buy oil from mid east..

[rampy]

BYO Refinery anyone?   

You got it... HOWTO DIY BioDiesel

http://www.makezine.com/blog/archive/2005/06/make_audio_show_4.html

They had a howto in this quarter's make magazine but it looks like a complicated process... 

http://www.schnews.org.uk/diyguide/howtomakebiodiesel.htm

http://journeytoforever.org/biodiesel_make.html

http://www.metafilter.com/mefi/45024

Disclaimer: I have never done this, nor am I suggesting that anyone here should try this or that these links are accurate in any way... I'm merely providing them for education/discussion purposes.

I just like to say "Master Blaster rule barter town!"

rampy

[Stingray]

Aw, how hard could it possibly be? Why I'll bet I could be refining my own gas within a few hours if I really put my mind to it.

-S

[Stingray]

-S

[Tiger-Heli]

went down to $2:80 today here in KY
sad people are glad to see it.
I have a problem in my mind I need to work out.
I got a email the other day, stating lets buy from gas station X instead of station y.
said one station did not buy oil from mid east..  Great I thought... only problem I have, station x ( in my area) ( was a big list of stations not getting oil from mid. east) is BP. 
Problem:  BP gas was 1st gas station to go to $3.00 a gal on 9-11
our state gov. gave them a smack in the chops. They quickly dropped there price.
I have refused to forgive them and not bought gas from them in 4 years

http://www.snopes.com/politics/gasoline/gasout.asp

Do a search on snopes for gasoline, and then buy wherever it's cheapest.

OTOH, were I am - Atlanta, gas about 6 months ago was about $1.85.  Pre-Katrina, it was around $2.45 - $2.59.  Post Katrina it increased to $3.15.  Currently, they removed a .15 tax on it, and it has dropped to $2.75.  I suspect it will soon stabilize at $2.50-ish, and the crisis will be over and everyone will rejoice even though it is 0.65 HIGHER than previously.

[ChadTower]

It was proposed to the MA legislature that they suspend the Gas tax temporarily to provide relief to struggling small business and families.  The very concept of reducing taxes was met with laughter by the people who could make it happen.