API: Production costs driving gasoline prices

By OGJ editors
-- API chief economist John Felmy said gasoline prices are simply driven by the product’s manufacturing costs and that market fundamentals rather than speculation are what drives today’s higher prices.

Pump prices are up from a year ago because refiners are incurring higher costs for oil and ethanol. Higher credit card fees and sales taxes also are contributing to the increased prices at the pump, Felmy said during a conference call with reporters to discuss gasoline prices going into the Memorial Day holiday weekend in the US.

Gasoline demand in the US was up in this year’s first quarter compared with year-earlier levels. In April, however, demand declined 2.2% from April 2010. Urban areas especially experienced a decline in demand in April, Felmy said, adding that it is difficult to determine whether this dip was the result of the sluggish economy or if it was due to higher gasoline prices.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...