Why Gas Prices Go Up When Crude Oil Trends Down ; Crude oil prices have been trending down lately, but you've probably noticed you don't always see the difference at the pump.
Here's why: while the price of crude oil makes up about 68 percent of the cost of a gallon of gasoline, it's not the only factor. According to oilprice.net, another 14 percent are federal and state taxes. Another 10 percent of what you pay at the pump is the cost of refining the gas. The rest are distribution and marketing costs, as well as profit margins.
While demand and supply does affect the price at the pump, the biggest influence may be speculation as retailers work keep their profit margins intact to allow for future purchases.
No comments:
Post a Comment