May. 20 at 3:18 AM
$GOOGL Hypothetically speaking….If crude oil prices rise to
$200 per barrel, gasoline prices would likely increase significantly. A barrel contains 42 gallons, and with crude oil at
$200 per barrel, the raw material cost per gallon would be approximately
$4.76. However, only about 45% of a barrels output is gasoline, so the crude oil cost per gallon of gasoline would be around
$10.57. Adding refining, distribution, and tax costs, the total price per gallon could exceed
$12, though actual prices would depend on various factors.
