Friday, July 30, 2010

How does the price of oil have anything to do with the price of gasoline?

oil is needed to make gasoline.....the higher the bushel of oil, the higher the price of gas goes.How does the price of oil have anything to do with the price of gasoline?
oil is the raw product..gasoline is the refine product..


e.g. cocoa..the raw product..chocolate the refined product,.okay..How does the price of oil have anything to do with the price of gasoline?
Gas is made from oil - oil rises, ergo, gas rises.
You can't be serious about this one. But if you are here you go. Economics 101:


The price of your ';raw materials'; directly afftects you ';bottom line'; or ';profit margin'; . Simply put if a company makes a product the more they have to pay for the materials used to produce said product then they will adjust the price they charge so that they can mantain a health profit margin. In other words oil is the raw material, gasoline is the product, if the refinery has to pay more for the oil you pay more for the gas.
They don't just pump gas right out of the ground!!! Theymake it FROM oil!!!

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