Jumpin Jahosaphat wrote:
On Tue, 29 Apr 2008 06:25:52 -0700, Lars wrote:

tealth (still flying) Pilot
Swedish government just passed a bill that will put the price of 100LL
at SEK 18 per litre. That is 3 US$ per litre or about 11 US$/gallon. I
heard that US truck drivers are protesting about gasolin prices in the
range of 3-4 $US/gallon. Get a grip, oil is a limited resource and we
all have to pay (much more) for it to appreciate its real value. And
yes, I am still flying, but for how long...

/Lars

The problem Lars is the price is artificially inflated to a big degree.
As proof, in the US companies must annually report their profits. Last
year Exxon reported a profit of $4Billion US. Which is the largest profit
of ANY company of ANY product anywhere in the world, including all these
Cartel countries. The problem is one of gouging on the part of certain
companies.
John


And in Sweden it is further artificially raised by the government. I'd
just a soon my money go to an oil company rather than a government I can
at least buy stock in an oil company.

That said it is to be expected that if the price of some raw product, in
this case oil, goes up the finished product is going to cost more.

Let's say you sell widgets and on day 1 widg, the raw material of
widgets cost you a $1.00. Your cost to refine widg into widget is $.50.
and you decide you want to make a 50% profit. So you sell your widgets
for $2.25.

Now years later the cost of widg has risen to $3.00 and your cost to
refine has stayed the same (which oil refining hasn't) to $.50. So now a
refined widget costs $3.50 and you wan to make the same 50% on your
money so you have to sell the widget for $5.25.