Analysis of Refiners' Total Barrel Costs and Revenues from the Sale of Petroleum Products, 1976 to 1979

摘要

In this report, the Economic Regulatory Administration has evaluated refiners' costs and revenues from the sale of major petroleum products from July 1976 through December 1979. This report represents a continuing effort to assess No. 2 heating oil prices and margins in that it updates prior middle distillate studies through March 1980. The analysis examines selling prices and costs associated with each major petroleum product category and a combination of petroleum products (total barrel) from a sample of nine refiners. The total barrel approach was adopted to reduce distortions caused by varying methods of allocation of costs among regulated and unregulated products by refiners. This report determines the extent to which increased costs were recovered on controlled products and whether refiners obtained greater cost recoupment on decontrolled products than would have been allowed under continued controls. The principal methods of measurement used to evaluate product pricing levels for the nine refiners surveyed were cost recoupment (Chapter III), gross margins (Chapter IV), and net margins (Chapter V). Gross margins were derived by subtracting average crude oil costs from average product selling prices for individual product categories and the total barrel. Net margins were derived by subtracting average crude oil costs as well as average marketing, manufacturing, and purchased product costs from average selling prices for individual product categories and the total barrel. (ERA citation 06:006939)