Map Distance Miles | How profits from your higher mileage expenses?
Have you ever wondered what creates up the price of your tank of gasoline? How can it price so much one month, even more the next, and then fall greatly in the space of a few weeks? www.mapmiles.com displays you how much it is to have from your starting point to your destination, how many Map Distance Miles it is and the route you need to get. It helps employees figure out their Map Distance Miles and travel allowances. However, what's doesn't tell you is where all this money goes.
There are three driving factors essentially. The price of crude oil from the makers is the a lot of trite one. The other pair are the refining and marketing costs and of course, taxes; what else?!
1. The Price of Crude Oil.
Gasoline is made from crude oil, so it's obvious that this will have the finest impact on its price. A barrel of oil is when it's measured and this contains 42 US gallons, which for all intents and purposes is roughly 159 litres.
Let's take an example from May 2008, when the cost of a barrel of crude oil was $125. Some easy math leads us to say that a litre is 78c. So why were you paying substantially more?
2. You have to pay your taxes!
A superb chuck of the price are various taxes, like a federal excise tax which can be as much as 10c a litre. This can raise billions for the treasury, but it doesn't fluctuate, so it doesn't obstensibly get a new price of oil in the context of what we're discussing. Depending on where you are, you may have to pay provincial flat taxes and these can range from 5c a litre to 15c.
3. Refineries and Marketing
Who delivers this gas to the filling station and petrol pumps? Once it's refined and "barrelled" it is sold to marketers and distributors who provide it to the millions of filling stations around the world. They want to earn their corn as well, so they'll be adding on a chunk to the price. Then you also have the filling station proprietors who need to create some kind of profit from their business.
So there you have it. You've now learned where your money goes. Next time you visit www.mapmiles.com to check for your Map Distance Miles or travel allowances, you'll know where all your money went!
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