Im not measuring dicks, you know all of that about oil and refining, way more than I do surely, and you are certain it should cost more for a gallon of gas than a gallon of milk?
Again, I think the answer is a perishable product in high demand in every part of the food production industry made for human consumption and the cleanliness and regulations that go along with that are the real answer. Something that comes from living beings that have a finite lifespan and susceptible to weather changes and disease.
I gotta agree with you but I can add one thing at least for here in Canuckistan, dunno about the U.S. or individual states though.
Up here we have a thing called "The dairy board of Canada" it sets the standards for everything dairy. It is also pretty much a mafia, union, or whatever. If you produce dairy for sale you MUST join or you can't sell and you MUST follow all of their rules without exception.
I didn't know about this board until I married my ex. Her uncle owned the biggest dairy farm in the region, I don't know I would call it massive but to me it was a big deal. I never had much to do with that part of the family as they were extremely religious and saw me as a heathen, once in a blue moon we would get invited out to the farm for something and I would attend.
The last time I was ever there was for a wedding and Uncle Norman was pretty angry, now this fellow didn't drink but on this day he had one or two beers and started talking. He told me all about this dairy board and the rules and such. One of the rules was a quota on production. You hit the quota you had to dump the excess milk, didn't matter if you dumped it on the fields or down a sewer but you must destroy it, you couldn't even give it away. This is one of the boards ways of fixing prices.
Well Uncle Norman being a good Christian man was of a mind that his excess milk should be given away free of charge to families in need, he was even willing to buy the equipment to pasteurize it.
Well the board said NO! You dump your excess and that's it, if the poors want any dairy they can buy it or the .gov can and give it away.
I filled him in on how the U.S. had the .gov cheese and such and he got even angrier. It wasn't long after he got out of dairy entirely and went into beef cattle.
It's surprising here in Canuckistan how much we pay for dairy, $7 butter, $6 a gallon for milk, $9 a pound for middle of the road cheese etc.
I remember taking my GF for groceries on her first time in the U.S. she couldn't believe not only the variety but the price on the cheese, she said "it's like they give it away here" She was blown away when I told her about how they used to indeed give it away.