Friday, July 24, 2015

Question Of The Month: What Factors Affect Fuel Prices?

There are four factors that have the most significance influence: the cost of crude oil, refining costs and profits, distribution and marketing costs, and fuel taxes.

"As of May, approximately 51% of the cost of gasoline was related to the price of crude oil. The fluctuation in crude oil price is the biggest factor in the volatility of the price of gasoline."

"With the exception of electricity and natural gas, alternative fuel prices can also be impacted by the price of crude oil and the price and demand for petroleum products."

"In May, federal, state, and local taxes accounted for 17% of the average retail price of a gallon of gasoline."

"In May, refinery costs and profits represented about 22% of the cost of a gallon of gasoline."

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