Petrol prices depend on extraction, refining, transport and taxes. MSG Equipment’s blog explains the production stages and price components.
Petrol pricing is one of the puzzles of the global economy. In April 2016 the cheapest litre was sold in Kuwait and the most expensive in Hong Kong. Extraction, refining and transport are among the many factors behind the price.
Crude oil cannot be used directly as fuel, so petrol is produced in several stages: the oil is heated and separated into fractions of different molecular weight, then reprocessed and purified. Refineries test the resulting fuel in their laboratories for hours.
According to the article, the final price is shaped by oil production and transport costs, fuel distribution and filling-station expenses, and taxes such as VAT and excise duty.