question about oil trading
Physical gasoline commodity trading
Does anybody here work in Oil trading or has experience in gas station business. I have few questions if the “terminal” price of gasoline is $3.12 for all the gas stations and it sells in the gas station for $3.55 then who is paying the tax about 34 c/gallon.
The other thing is all refineries give you a quote for the terminal price. I called them and they said you have to fill your tank truck from the terminal, then how will you have different types of gas.
The gas station is likely paying the tax but keep in mind that 34 cents is not all profit (and therefore not all taxable). The station has to pay for trucking and probably a terminal fee as well. Different octanes will be separated at the terminal. But if you're talking about different brands (Chevron gas vs Texaco gas) they have proprietary additives that are added at the terminal to their gas.
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