JP,
US40$/bbl is roughly A$0.35 for 1 Litre Raw crude. (ie 1 bbl= 159Litres & 72c exchange rate).
1) This raw crude is sent off to a refinery on a Tanker (VLCC/Aframax/Suezmax etc etc) thus incurring 'shipping/freight' costs & refining cost at the plant.
2) The clean product then leaves the refinery for its ultimate destination & is sold at what's known as Terminal gate price.
3) Again there's transport costs, marketing costs, fuel taxes giving rise to whats known as Wholesale price.
4) Eventually whichever Bowser sells the product factors in their margin.
That's what u end up paying for the final product.
In Oz, we consume more fuel then what's produced. In 2014 this difference was 550k bopd (ie 998k consumed & 448k produced frm the NWShelf, Bass Straits, Timor, Cooper basin) which was imported from Singapore/Malaysia by the likes of BP, Exxon etc. The oil price is either referred as MOPS95 (not Brent or WTI in Singapore) or TAPIS if its imported from Malaysia. Again, add the shipping, admin, taxes etc to arrive at the final A$/Litre u pay at the Bowser.
That's the straight-fwd explanation. One pays premium price for light oil, low sulphur refined product.
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