The gasoline retail price is determined by following factors
From one barrel (42 gallons) U. S refineries make about 19 gallons of motor gasoline. The residue yields other refined products such as distillate and residual fuel oil.
Oil and natural gas industry make 8.6% for every dollar of sales.
There are about 161 different types of Oil found worldwide. The different categories of Oil found worldwide is classified into different types of crude oil like Brent, Dubai Crude, West Texas, Intermediate, etc. Classification is done according to their sulphur content.
For importing petroleum or petroleum products to U.S, you don’t need a license to import these items, but you need to file a form called EIA814 with the EIA (Energy Information Administration).
In the energy commodities, this fund is the most rounded investment in the energy commodities. This fund is invested in the energy futures contract like heating oil, Brent crude oil, RBOB gasoline and natural gas.
EIA (Energy Information Administration) is an independent agency of the United States Department of Energy, which gives all the weekly detail or data of the supply of oil and natural gas in U.S. It schedules weekly publications known as WEEKLY PETROLEUM STATUS REPORT and THE WEEK IN PETROLEUM.
Some of the states that are paying more price for gasoline other than other states are
The factors that can fluctuate the gasoline price are
There are State taxes and Federal taxes that is levied on your gasoline, though taxes changes from one state to another. You are paying approx. 23% of state taxes per gallon of your gasoline that may vary to 40% depending upon the state. While, federal government excise tax is about 18 percent per gallon.
It is a collection of countries which produces crude oil and is founded in 1960, in order to regulate the process of export of their crude oil to the other countries of the world and to decide the crude oil prices. Together OPEC’s 12 member countries supplies about 40% of the world’s oil supply.
Organization of Petroleum Exporting Countries is also known as OPEC.
API is nothing but the ratio of its density compare to other substance like water to check the standard of the oil. The formula to check API is
API gravity = (141.5/ Specific Gravity) – 131.5
On a regular gallon of gasoline, you will pay about
Approximately about 10% -15 % of ethanol is present per gallon of gasoline, and it is denoted by E10.
Crude oil is a commodity, and the prices depend on the demand and supply.
API me American Petroleum Institute; it is the main association for the oil and natural gas industry in U.S. The API denotes about 400 corporations in the petroleum industry and helps to set the standard for production, refinement and distribution of petroleum product.
On the world market, oil is priced in U.S dollars. So, when dollar becomes weaker, foreign currency becomes stronger, which me foreign countries can buy more oil at same amount of money. As people in other countries start buying more, demand rises, and it drives up the price in dollars, which again influence the price of oil in the global market.
OPEC does not decide the crude oil prices, though it influence the market prices. It is following exchange market that decides global crude oil prices