Posted by mkirsch on August 07, 2014 at 07:01:37 from (72.45.143.81):
In Reply to: Price of gasoline posted by ss55 on August 07, 2014 at 06:35:49:
Quoting Removed, click Modern View to see
It's not "dictated."
The fixed amount is what's left after the oil is sucked out of the ground and loaded on to a tanker.
When oil prices go up, fuel prices go up and the cost of drilling, pumping, and transporting the oil all go up, along with the cost of equipment repair and replacement.
If you run a farm you've faced similar issues here over the past several years. Sure corn is $8 a bushel but fuel is $4 a gallon and the price of everything else has gone way-way up. In the end you really don't have much more left over than you did when corn was $4 a bushel. Then corn goes back down to $4 and everything else stays high...
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