A Barrel of Oil
Every 42-US-gallon (159 litre) barrel of crude provides a little more than 44 gallons of petroleum products. This is gained due to processing of crude. From one barrel we get (in gallons):
.7.27 gallons (27.5 liters): Other products (feed-stocks for petrochemical plants, asphalt, bitumen, tar, fertilizers for agriculture, plastic toys and gadgets (bags, computer cases, bubble gum, car tires, perfumes, petroleum jelly, ammonia, washing liquids, etc.)
•1.72 gallons (6.5 liters): Liquefied Petroleum Gases (LPG)
•3.82 gallons (14.5 liters): Jet Fuel (kerosene)
•1.76 gallons (6.6 liters): Heavy Fuel Oil (Residual)
•1.75 gallons (6.6 liters): Other Distillates (Heating Oil)
•9.21 gallons (35 liters): Diesel
•19.15 gallons (72.5 liters): Gasoline
Current barrel price of oil is $80.00 x 19.15/42 = $36.47 (this represents the barrel cost for gasoline only)
Therefore, $36.47 / 72.5 = $0.503 (this is litre cost of gasoline)
Federal and Provincial Excise tax plus HST on the Excise Taxes total approximately $0.279 per litre in Ontario. This is a general average for most provinces except B.C., where taxes approximate $0.41 per litre.
Therefore, adding 50.3 + 27.9 provides a litre price of $0.782. At the retail litre price of $1.20 the gross profit margin equals 41.8 cents per litre or 35%. This might seem reasonable, but gasoline represents only 45.6% of the barrel price. It’s no wonder the oil companies are making billions of dollars and Elizabeth and Beatrix are banking much of it.
Take a look at the corporate profits: