I must be wrong

[j.sabourn]

Ref. previous re. price of oil. I must have this wrong so someone may put me right. My calculator is not working so have tried working out wth pencil and paper.
1 barrel = 5 cubic feet (Dictionary)
= 0.70792 cubic metres
= 155.7204 Gallons
= 636.46 Litres
At 1.30 dollars a litre (present lowest price in WA) This would give a return of 826.39 dollars a barrel
Present market price is about 86 dollars a barrel. This gives a profit margin of 740.39 dollars a barrel. I know there is the cost of refining etc. etc. etc. transport etc. etc. etc. I must have these figures wrong so will certainly not take umbrage at being put right, indeed I hope someone does correct me. I got the conversion rates out of Nories Tables but think my arithmetic is not what it used to be. Cheers John Sabourn

[alf corbyn]

if you try that with beer you will get a shock.

[j.sabourn]

Already have Alf, this is why my arithmetic is probably wrong. Cheers John Sabourn.

[Tony Morcom]

Hi John

1 cubic metre = 6.28981 US barrels oil

1 litre = 0.001 cubic metres

therefore 1 litre = 0.00628981 barrels

0.00628981 barrels = $Aus1.30

So I barrel would produce a revenue of 1/ 0.00628981 x 1.30 = $Aus206.68

So at $Aus86 cost, Profit = 206.68 - 86 = $Aus 120.68 I think??!

[robpage]

A barrel in Oil terms is US gallons 50 Imperial gallons 45 or in new money 205 litres so at $1.30 a litre ( half the UK price ) that is Aus $ is roughly = to $ US then the retail price of a barrel is $261.5 so the current price of Crude is $97.52 USD for Brent crude North Sea Oil , The refining cost is approx $0.10 c a litre or $20.00 a barrel Marketing , distribution , and oil company profit takes a share , the rest is the retailer and the big chunk especially here in te UK is Taxes .

A breakdown for 2011s pump prices in the UK is http://www.ukpia.com/files/pdf/under...april-2012.pdf

The quick answer is in the UK the refined product is £0.50 so that is roughly £0.14 for refining , then , distribution , marketing , profit for retail £0.30 and the taxman takes £0. 84 when it is at £ 1.40 a litre

the last tax figure I could find for Aus was $0.38 c per litre Tax in 2006

so for Aus the retail is 205 litres X $1.30 = $266.50 retail per barrel - $95.00 cost of crude = $171.50 surpless - $82.00 tax = $89.00 less $20.5 refining costs = $60.00

so that leaves $60.00 to distribute , market , retail , on each barrel , distribution and marketing account for approx $20 a barrel so the retailer and Oil Company has $40.00 a barrel left for overheads and profit

Taking a guess that is probably somewhere around $0.05 a litre in profit margin for the retailer , against $1.30 that is a poor margin of less than 4% ,

So who is the BADDIE !!! retailer gets $0.05 a litre , oil company something similar Australian government gets $0.40 . oh and the arabs they get $0.40 , Feel lucky you Australians our government levies $1.32 a litre in Taxes that is £0.84 a litre

Taking the figures correctly supplied by roger of 158.9 litres per barrel then , A$0.6012 cents per litre crude , The current fuel tax in Australia is A$0.5188 per litre for petrol leaves very little profit margin for the retailer , I think that Brent crude may be expensive so that probably leaves less than A$0.10 cents for overheads and distribution and profit ,

[Roger French]

A Barrel of Oil is 42 US gallons, 35 Imperial gallons.

[Louis the Amigo]

Hi shipmates What about profit + and all the tax bands for all the prouduct made out of oil + all the back handers paid to governments by companys = transport i.e pipelines The price is not fixed !!!!!

[happy daze john in oz]

Rob the tax on fuel in OPz is a constant at 38cents per litre. We did have a system where the price was adjusted for inflation twice a year, grog and smokes still are, but as it was a Lbour concept the last feral Liberal gov did away with it and set a fixed price. GST is then added to that figure. But unlike Uk our fuel tax is much lower than that. Last figures I saw showed tax on fuel, UK 60% France Germany 65% Spain, Grece, 50%.

[robpage]

I had added the GST in as well and rechecking the figures that makes 50.41 cents per litre which is much less than the UK tax . I think you have a system that gives business some relief , Here they can get the VAT ( GST ) back to provide some relief to the costs .

[Tony Morcom]

With respect to everyone there appear to be several versions of what a barrel of oil equates to on the net. The most consistent definition is as follows:
barrel (bbl)


Definitions (3)


Unit of volume for crude oil and petroleum products.
One barrel equals 42 US gallons or 35 UK (imperial) gallons, or approximately 159 liters or 9,702 cubic inches (5.6 cubic feet);
6.29 barrels equal one cubic meter and (on average) 7.33 barrels weigh one metric ton (1000 kilograms).
One barrel of crude equals 5604 cubic-feet of natural gas, 1.45 barrels of liquefied natural gas (LNG), or about one barrel of gas oil.

This comes from www.businessdirectory .com

However the bottom line remains the same: we are all paying far too much for our petrol!