The Goldendale Sentinel - Headlines & History since 1879

By Lewis L McFarland

Presidents can’t change gas prices

Letter to the Editor


To the Editor:

In reading Eric Olsens’ letter and the response to it, I thought it might be instructive to put some prices to the cost to produce a gallon of gasoline.

Based on a recent Bloomberg article, we find that the average price of a barrel of crude oil in 2012 is $110. A barrel is 44 gallons and thus a gallon of crude costs $2.50 just to extract from nature. We then look at the Energy Almanac to find the other costs in producing, handling, and taxing a gallon of gasoline, and we arrive at a price with profit included of $4.17 per gallon at the pump as of Oct. 29, 2012. This price has temporarily gone down due to a decrease in demand.

The increase in petroleum extraction is happe...

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