25 comments on It's That Time Again (or Refining 101: Winter Gasoline)
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that little difference is a big margin. There are also reasons to change RVP in winter in terms of driveability. Summer gas has so little vapor in cold temps it's hard to get your car to start.
What portion of the reduction is passed on to consumers?
If it's all of it, then there's no margin in it at all, just market share protection necessities - which is where the high tax element in europe might push the issue towards redundant.
I can't speak to the technical stuff except to say that cars in the UK are harder to start in winter - my old MG used to border on the impossible...
--
Jaymax (cornucomer-doomopian)
as little as possible of course!
but refining margins tend to be much lower in fall.
Right now the US gasoline crack is just $5/bbl down from near $30 in April/May. US gasoline is down 40+ cts/gallon ($17/bbl) at the wholesale level while crude is up $10/bbl
So the consumer is defn getting a bit of a break at the expense of the refiners. This is one reason not to expect much more drop off in gasoline prices this fall. They can't fall much without refiners cutting runs.
It's real. If you look at gasoline specs you see one called "drive ability index" Has inputs of RVP and front end distillation temperatures IIRC. Basically measures whether you can get things started.