Here will be an example of a video title for this video ATLANTA When President Joe Biden announces the ban on Russian oil imports, many experts and observers anticipate a new increase in gasoline prices, which have already skyrocketed since Vladimir Putin launched the war against Ukraine. However, it may come as a surprise that Patrick De Haan, an expert at GasBuddy, told Christie Diez, from 11Alive, the previous Tuesday that this latest measure is unlikely to produce such a sharp uptick. This is because, according to him, Russian oil is not that important to the US market and vice versa; US consumption is not that important for Russian production. But if Europe, which is a major customer of Russian oil, were to reduce the quantity it imports, then we could see a significant rise in prices.
That dynamic gives us a little idea of why gas prices rise and fall as they do. The Energy Information Administration points out that the original price of oil (before refining it for the gas station) depends largely on global supply and on the number of people who currently need it (demand). And the allies are striving to restrict the amount of Russian supply sold on the international market, which means that the price of the remaining oil rises and, eventually, the price at gas stations. In this case, the war in Ukraine and the international response against Russia could have a substantial disruptive effect on global supply.
That still doesn't explain why gas prices can fluctuate wildly from place to place, even within a single metropolitan area like Atlanta. According to the National Association for Convenience Fuel Retailing, the vast majority of gas stations are not owned by an oil or refining company. This means that individual owners or groups of owners are affected by factors such as the type of fuel (branded gasoline, such as Chevron, costs more), deliveries (direct deliveries from refineries cost more), contracts they may have with refineries, and the amount of fuel they buy (buying in bulk is cheaper). External factors, such as taxes that vary from state to state and regulatory factors, can increase the price.
California has much higher gas prices than Georgia, for example, in part because its gas sales taxes are much higher than those in Georgia. Clean air regulations also play a role, such as an Environmental Protection Agency rule that requires cleaner and more expensive reformulated gas in smokier cities. Once again, taking California as an example, that state requires a cleaner form of gasoline than Georgia, which creates an imbalance in prices. Notifications can be turned off at any time in the browser settings.
If we take into account all these complex factors, it becomes clear that it is worth looking for the best price for gasoline, because consistency is not one of the buzzwords in the gas industry. Practically all gas stations are independently owned (not owned by major oil companies) and, of these, about 60% are owned by individual owners. Finally, the owner of the gas station, an individual franchisee or a company, sets a price that allows profits to be obtained. Marketing and Distribution Costs and Profits This component includes the cost of transporting, storing, and distributing gasoline from refineries to gas stations.
All of this explains why gasoline is more expensive in California than in Minnesota and why gas is more expensive during the summer. Once the crude oil is refined into gasoline, the fuel must be sent to a storage tank and finally distributed to local gas stations. You stop at a gas station and get gas, only to drive a block further and see that another gas station has gas for 20 cents less than what you just paid. The black gold market does not take into account price differences from one station to another in the same city and on the same street.