Political Quotes

“It is easy to determine refiner margins, which is simply refiner costs plus profits. You simply take the published spot or wholesale price of gasoline and subtract the price of crude oil. I have chosen the spot price in Los Angeles because L.A. supplies the Las Vegas market. Bear in mind that the cost of refining oil into gasoline will vary by only a few cents. Like taxes, it is pretty much a fixed cost. Consequently, any increase in the refiner margin is actually an increase in profits. The April 5 Oil Price Information Newsletter, a publisher of industry data, says California fuel blends averaged $10.80 a barrel over crude during the decade. That is a historical refiner margin of 26 cents for every gallon of gas. So this chart shows that the refiner profits have recently peaked nearly 50 cents above that historical level. These estimates are conservative. They are actually lower than the estimates of the California Energy Commission. Can you imagine these profits? Take the normal profit that a refiner makes on a gallon of gas; now add another half dollar to every single gallon. Nevadans use 2.3 million gallons of fuel a day.”