Marketing and refining margins across the industry have been shrinking over the past 10 years. Crude oil generally accounts for about 25 percent of the retail price of gasoline, but the price for crude oil almost tripled in the past year and, in March 2000, accounted for about a third. Here is a list of some terms often used in discussions about gasoline pricing. Consumers frustated by gasoline prices, confused by fluctuations Consumers are frustrated by high gasoline prices and confused by price fluctuations and differences between markets. See what components are included in the price you pay at the pump.
Price is key in purchasing decision Gasoline retailing is an extremely price-sensitive business.
Retailers match competitors' lower prices quickly to avoid losing volume. Crude oil and wholesale gasoline influenced by international markets The retail price of gasoline is affected over time by activity on world markets for crude oil and wholesale gasoline. Taxes make up a significant part of price Taxes account, on average, for between 40 and 50 percent of the retail price of gasoline. Canadian gasoline among the lowest when taxes excluded On average, when taxes are excluded from the price, Canadian consumers pay prices that are equal to or lower than their American counterparts. Local competitive forces affect prices Local market conditions can cause frequent price fluctuations and differences between markets in the same general area.