Raw materials = $2.62For those that care who care what makes up the price of gasoline!The cost of the raw materials used to make a product has a major impact on the final product price. The raw material for gasoline is crude oil. The price of crude oil is set by global markets, where buyers and sellers constantly react to supply and demand factors. Oil is just one of many commodities traded every day in the global market. Others are the corn that affects the price of food and the cotton that affects the price of clothing.
Crude oil is by far the largest factor in the price of a gallon of gasoline – accounting for 80 percent of the $3.27 average retail price per gallon in December, according to the EIA.
To put that in another way – about $2.62 of the average gallon of gas in this example is set before a refiner even touches the raw material....
Thanks to Tony for finding and submitting this article.
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