Reply #8: Gasoline/diesel ratios vary by the type of crude and the refinery settings. [View All]

[GliderGuider]

Typically, a refinery will get about 20 gallons of gasoline and 7 gallons of diesel fuel out of a barrel of oil. Since 10% of the initial barrel is lost, that 27 gallons represents a bit over 70% of the final output. The other 30% will include high-value fractions, but also lower-value fractions like asphalt.

The value of the other fractions is a consideration when calculating the total income of the oil company from all hydrocarbon products, but we were just looking at the portion of that income derived from gasoline manufacture and sale. For that purpose, it still makes sense (believe it or not) to calculate it as though the whole barrel of oil gets turned into gasoline. This is because the other fractions enter different income streams that are not under consideration here. Those streams may have higher or lower profit margins than gasoline depending on the market and applicable taxes.