Depreciation
The depreciation presented here is a simple straight line depreciation calculation, based on the current estimated capital cost of the plant. The depreciation is that which would be paid by a unit that had just been completed in the region in question - many actual operating units are in fact fully depreciated and do not need to support this charge.
Direct Fixed Costs
Direct fixed costs are the fixed costs that are directly related to the process operation. These include the wages and salary burden for all staff directly involved in plant operation, along with an average annualised maintenance charge.
Direct Overheads
Direct overheads include all salary burden that the company needs to pay on top of the basic wage paid to the employees on the plant. This includes any pension and statutory insurance and healthcare payments.
Dubai Crude Oil
Dubai crude oil is a medium sour crude produced from the Fateh Field in Dubai. Although declining in production it is still used as a benchmark crude in for price setting. Due to its physical location Dubai Crude is shipped to Asia rather than being consumed in Western Europe or the United States. Its heavier composition and high sulphur content mean it is less favourable for the production of gasoline than Brent or WTI crudes.