The Pump Fake
It’s been a rollercoaster of a year, riding the gasoline price wave at the pump. California’s average topped out at $4.21 per gallon, bottoming out no lower than $3.55. And for the rest of the United States… It didn’t see prices fall below $3 at any point in 2013.
Lively chatter attempting to predict and determine what will lower prices has jammed up the digital waves for far too long.
We, the experts in the oil and energy field at Oil & Energy Daily, are here to silence the racket.
We hold the truth about what really affects your pockets at the pump.
So check out this insightful infographic, and you’ll see what we mean.
As this graphic shows, gas prices aren’t impacted by the source of the countries’ oil. A 2012 Associated Press study proves that there’s “no statistical correlation between how much oil comes out of U.S. wells and the price at the pump.”
You can also see that while pump prices vary from country to country, the percentage of imported gasoline doesn’t determine the amount you shell out. According to Oceana, variation at the pump is “almost entirely attributable” to variation in gasoline tax.
While countries like Belgium, France and Germany are importing well over 50% of their oil, the raw prices for gasoline are comparable to the United States and Canada – two countries that import the least oil.
As shown here, gasoline tax is the dominant driver that’s creating pump price differences between countries – not the degree of importation versus exportation.
The only factors that are certain to change in global prices of crude oil are global supply, global demand and investor interest.
If supply is down, demand is up, or investors are buying oil, you can expect that crude oil prices are going to skyrocket. In turn, if supply is up, demand is down, or investors start selling, the prices of crude will plummet. It’s that simple.
How did gas prices affect you in 2013?