Can you or someone help me with the diesel fuel bit of the equation. Linc are talking finished product here, not a barrels of crude. In that case a margin of $30 a barrel would be far too low. If I recall correctly (someone put me right if not), Linc's estimated cost of production of diesel fuel was $28 a barrel. If a barrel is 200 litres, aren't we looking at a margin per barrel of around $70, assuming a discounted wholesale price of 50c/litre for diesel? Corrections welcome esp as I have no idea what BP would be paying for the diesel... but I know what it costs at the pumps and it's much more than 50c a litre.
LNC Price at posting:
$2.88 Sentiment: LT Buy Disclosure: Held
