Posted on 03/28/2012 5:19:21 AM PDT by thackney
he national average price of regular grade gasoline averaged $3.58 per gallon for the month of February 2012, representing a 37-cent (11.5%) increase compared to February 2011 and an historic high for the month of February in both real and nominal prices (see chart above). However, as a result of vehicle fuel economy improvements, costs-per-mile-driven are not at record highs. Further, gasoline prices vary significantly by region, with average prices on the West Coast almost $1 per gallon more expensive than those in the Rocky Mountains. The seasonally-high retail prices are mostly a result of global crude oil prices, which have also been at record levels for this time of year.
In general, the level of gasoline prices is mostly a function of crude oil prices. Because crude oil is the main driver of gasoline prices, weak U.S. gasoline demand has not translated into lower costs at the pump. Crude oil prices are up in 2012. The price of Brent crude oil averaged $119.33 per barrel in February, the highest of any February on record. This average price was an increase of $15.61 per barrel compared to a year earlier, which (when translated into gallons) was also 37 cents per gallon, the same as the increase in retail gasoline prices.
In nominal terms, retail gasoline prices increased about 37 cents (11.5%) compared to the February 2011 average price of $3.21 per gallon, the previous nominal record. The increase was less steep when adjusted for inflation. In real terms, retail gasoline prices were up 8.9% compared to February 2011. The February 2012 price of $3.58 per gallon eclipsed the previous February record set in 1981.
However, compared to 1980, costs per mile driven are lower due to increased vehicle efficiency. Adjusted for inflation, costs per mile driven were about 23 cents in 1980. In February 2012, that number was estimated to be between 16 cents and 17 cents per mile (see chart below).
There is significant regional variation in gasoline prices. During 2012, retail gasoline prices in the Rocky Mountain region have been well below the national average due to lower crude oil input cost for refiners in that region. On March 12, the average price in the Rocky Mountain region was $3.48 per gallon. That was 74 cents per gallon lower than the average price on the West Coast, which was $4.22 per gallon on the same day. The West Coast has recently experienced a number of refinery outages that pushed up retail prices in the region. The national average price on March 12, 2012 was $3.83 per gallon.
When I left work yesterday our price was $3.93. This AM it is now $4.17. Thanks nobama.
I don’t buy that crude prices are driving retail pump price. When crude was running $150, pump prices did not swing anywhere near what they are now. Government regulation is the driver IMO.
That and the fear of more of the same. And, the government money printing presses.
When you run the presses full time to print American currency, it tends to be worth less and buy less.
Wow , the price of oil has an effect on gasoline prices... Im so glad someone informed the public..
While this is true,it still does not account for the disparity between $150 barrel crude and $2.25 gallon gasoline (more or less) back in the early part of this century and the $107 barrel crude and $4.00 gallon gasoline today. Neither will it account for the difference in fuel prices between high dollar highly regulated west coast prices and areas having less regulation and lower prices.
It is really simple.
The oil types have had enough of the Marxists in power. They must be destroyed. High gas prices are one of the destructive forces.
There will be a succession of others. Obama must be destroyed and ground into the dust of history
Maybe we could just stop EXPORTING fuel to other countries. Want a shock, look up “US Gasoline Exports.” The fuel exports has now reached the top of all our exports.
Why are we selling fuel to other countries?
Maybe regulation makes it difficult to sell here?
I don’t know. I’m just asking.
Don’t know either. Just makes the discussion of opening the fuel reserves a stupid conversation.
Crude was never $150. It approached that number for a few hours on the futures market. The average price paid by the refineries in June/July 2008 was under $130.
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=R0000____3&f=M
Also at that time, the WTI price for crude delivered to Cushing, OK was above the other crude prices of comparable oil at our coasts. Now it is reversed with WTI being below the others.
http://online.wsj.com/mdc/public/page/2_3023-cashprices.html?mod=topnav_2_3000
http://online.wsj.com/mdc/public/page/2_3023-cashprices-20080602.html?mod=mdc_pastcalendar
I wonder how many thousands of analysts the Energy Information Administration has hired to inform the unwashed that oil prices impact gas prices???
Just stunning information!
Because our refineries are producing more gasoline, diesel, jet fuel, etc than is used in the US.
Maybe regulation makes it difficult to sell here?
No, they are still meeting the US demand, they are just making more.
This is a good thing. After many years of expanding our existing refineries, combined with our falling demand, we finally have some surplus refining capacity.
So we import a bit more crude oil than we need, refine it, and sell the products at a higher cost than the crude oil. It keeps our refineries running, keeps more jobs in the US, and it helps our trade balance.
Thanks! I knew you would know.
There are several people who believe that by exporting the excess, we are raising the price here in the US.
I don’t agree with that, any more than exporting food, computers, cars, etc would raise the price of those.
I see having a surplus capacity as doing the opposite, helping to prevent price spikes if a refinery is unexpectedly shutdown (or blown up).
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