>>>>>>>>>Why is it that as soon as the price of oil goes up, it goes up at the pump immediately, supposedly because they forecast what it will cost them to replenish their stocks. But, when it goes down, as it did today, prices don't go down immediately as well since replenishing their stocks will cost less?
>>>>>>>>>
>>>>>>>>>
>>>>>>>>>http://biz.yahoo.com/ap/080929/oil_prices.html
>>>>>>>>
>>>>>>>>What is the real mystery to me is;
>>>>>>>>
>>>>>>>>How come petrol cost 1.10 EURO / Liter here, while you pay it $3.63 per galon there.
>>>>>>>>That would be 4.4euros per gallon. (Is that 7$ already ?)
>>>>>>>>
>>>>>>>>Is it that Europeans rafineries are just so inneficient that they cannot produce it any cheaper starting from
>>>>>>>>crude price or there is something else involved here.
>>>>>>>
>>>>>>>
>>>>>>>Perhaps it is like any other product, buying in bulk? We import 70% of our oil. We do have some of our own energy (30% of our oil usage is our own and keep in mind we have other sources of energy - just NOT enough), but the amount of energy we produce and use ourselves is probably enough to supply some of Europe...
>>>>>>
>>>>>>Okay , u/stood; You buy in bulk and get 120% discount {g}
>>>>>>
>>>>>>Any link that support that discount theory?
>>>>>
>>>>>
>>>>>I don't know. I certainly could look and see. I was being facetious :o)
>>>>
>>>>Any 'disconnection' between retail gasoline price in Europe and here is caused by VAT tax. When Euro-based refinery sells gas in Europe, tax is included, when gasoline exported to USA, it is not, i.e. company gets rebate, the same way as you may get a rebate for goods bought in Eurpoe in the airport when leaving Europe for USA.
>>>
>>>VAT is 15%
>>>
>>>Diff between EU and US gas price is like 150%
>>>
>>>How come ?
>>
>>150%? It is too much. Maybe it is closer to 50? Wikipedia says that European VAT is in 15-25% range (i don't know if this number is correct), also I presume that different European countries have some other taxes, e.g. sale tax, increasing price at the pump.
>
>As Agnes pointed out in let say Germany gas cost 1.5 Euro / liter
>That is 6euro / galon (That would be 10$/Galon if converted ?)
>
>So you pay 3.63/Galon whereas Germany pays 10$ / Galon
>(or as in this first article even 11$ in UK!)
>
>Comparing to 3.63$ to 11$ in Uk, price diff is almost 300%
>
>
>http://www.time.com/time/world/article/0,8599,1809900,00.html
>http://money.cnn.com/2008/05/01/news/international/usgas_price/index.htm
>
>Now that somehow clouds that picture of strong performing US economy, American dream and all that.
>
>Imagine life/economy in US where you had to pay 11$ / gallon.
>( While I am trying to imagine life/economy of Europe on 3.63$ galon. )

According to
http://www.esso.de/auftanken/rund_ums_zahlen/fragen/steueranteil_am_benzinpreis.html

We have
A € 0.6545 oil (energy inculding @0.15 "eco" - its for pension for what I understand) tax
B adding the "pure" gas price

multiply with 1.19 to add the VAT of 19%

C add @ 0.46 Oil Storage tax (EU oil storage of 90 days)

So this is 1.19A+C+0.19B ceiling (we asume ceiling, it is a tax) 1.24 + 0.19B Taxes
If we assume €1.50 the liter total we get 1.24+0.19(1.50-1.24)/1.19 round 1.28, ceiling 1.29

So we have €1.28 tax on a price of €1.50 on the gas pump

Further questions? ::)