[Diy_efi] Is E85 worth it?

[Bobby Yates Emory]

Klaus,

You are talking about opportunity costs.  Adam is talking about the
accounting costs.  To extract and process a gallon of gas costs the state
owned oil company 39 cents.   If they sell it to one of their citizens, they
give up the $1.66 that they could sell it to your favorite oil company for.

On their accounting books, they only have the 39 cents.  Now we know how bad
they are ripping us off.

Bobby

On 8/26/06, Klaus Allmendinger <klaus at innovate-tech.com> wrote:
>
> In Kuwait, I believe it is government mandate that
> fuel is sold basically at cost withint the borders of
> the country.  Last time I checked, gasoline there was
> about 39 CENTS per US gallon.
>
> That just means that in Kuwait gasoline is government subsidized. With
> crude trading at ~$70.-/barrel last I checked, and at 42 gallons per barrel,
> what the crude is "worth" in the current market is $1.66 per gallon.
> It's similar to diamonds. They are worth a lot of money because somebody
> is willing to pay that. From a material standpoint they should be extremely
> cheap because they are after all just hunks of carbon.
> With gas prices here in SoCal around $3.20 /gallon it means the enduser
> price of the processed product is about 2 times the raw material cost for
> the manufacturer. That is actually much lower than in most other industries.
>
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-- 
Toward freedom,

Bobby Yates Emory