This is the accessible text file for GAO report number GAO-05-525SP 
entitled 'Motor Fuels: Understanding the Factors that Influence the 
Retail Price of Gasoline' which was released on May 24, 2005.

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United States Government Accountability Office:

Motor Fuels: Understanding the Factors that Influence the Retail Price 
of Gasoline:

GAO-05-525SP:

May 2005:

Contents:

Abbreviations:

Preface:

Section 1: Background:

How much of a barrel of oil is made into gasoline?

How does gasoline get to the consumer?

How have gasoline prices changed over time?

Section 2: Elements Of Gasoline Price:

What do consumers pay for in a gallon of gasoline?
Crude Oil:
Taxes:
Refining:

Distribution and Marketing:

Section 3: Variations In Gasoline Prices Over Time:

What are the key factors causing gasoline prices to change over time?

What determines the price of crude oil?
World Oil Demand:
World Oil Supply:

How do changes in gasoline demand relative to supply affect the price?

Can U.S. refineries produce as much gasoline as consumers demand?

How does the United States balance gasoline supply and demand?

How have government requirements for special blends of gasoline 
affected the price of gasoline?

Why are gasoline prices generally higher during certain times of the 
year?

How have gasoline taxes contributed to changes in gasoline price over 
time?

How have the mergers that occurred in the petroleum industry in the 
1990s affected competition and the price of gasoline?

Section 4: Geographic Variations In Gasoline Price:

Why do gasoline prices vary from place to place?

How does proximity to the source of supply affect the price of gasoline?

How do differences in the types of gasoline used cause geographic 
variations in gasoline price?

How do geographic differences in taxes affect gasoline prices?

How does local competition affect gasoline prices?

How does competition between name-brand and unbranded gasoline affect 
price?

Appendix I: Scope And Methodology:

Related Gao Products:

This is a work of the U.S. government and is not subject to copyright 
protection in the United States. It may be reproduced and distributed 
in its entirety without further permission from GAO. However, because 
this work may contain copyrighted images or other material, permission 
from the copyright holder may be necessary if you wish to reproduce 
this material separately.

ABBREVIATIONS:

API: American Petroleum Institute:

BLS: Bureau of Labor Statistics:

EIA: Energy Information Administration:

FTC: Federal Trade Commission:

OPEC: Organization of Petroleum Exporting Countries:

SUV: sport utility vehicle:

PREFACE:

Few things generate more attention and anxiety among American consumers 
than the price of gasoline. Periods of price increases are accompanied 
by high levels of media attention and consumer questioning about the 
causes and impacts of the price changes. The most recent upsurge in 
prices is no exception. Between January 3 and April 11, 2005, gasoline 
prices increased nearly every week, and during this time the average 
U.S. price for regular unleaded gasoline jumped 50 cents per gallon, 
adding about $7.8 billion to consumers' total gasoline bill, or about 
$58 for each passenger car in the United States. Spending billions more 
on gasoline pinched consumer budgets, leaving less money available for 
other purchases.

Beyond having concerns over price increases, consumers find it 
difficult to understand how prices can vary so much across the country 
or even from neighborhood to neighborhood. For example, consumers in 
San Francisco paid an average of $2.63 per gallon during the week of 
April 11, 2005, while consumers in Chicago paid $2.33 per gallon; in 
Denver, $2.25; in New York, $2.19; and in Houston, $2.12. Within the 
city of Washington, D.C., pump prices for regular gasoline varied by as 
much as 22 cents per gallon among the stations that we visited.

Over the years, these issues have been the subject of numerous 
investigations and reports. We at GAO have testified multiple times on 
related issues in congressional hearings. Often reports on gasoline 
prices have been technical, leaving basic questions unanswered. We 
prepared this primer to help improve public understanding of the major 
factors that influence the U.S. price of gasoline and the challenges 
facing the United States on issues related to gasoline supply, demand, 
and prices. In the primer, we present information on the factors that 
influence the price of gasoline and, to the extent possible, why those 
factors have developed. Specifically, we explain how gasoline is made 
and distributed, what consumers pay for in a gallon of gasoline, why 
gasoline prices change over time, and why gasoline prices vary from 
place to place.[Footnote 1] The information is presented in a question- 
and-answer format and is written for a non-technical audience.

In preparing this primer, we analyzed gasoline market trends and 
conditions, using the most up-to-date information available from the 
Department of Energy's Energy Information Administration (EIA) and 
other sources.[Footnote 2] Because not all of the available information 
covers the same time periods, there is some variance in the periods 
covered in the many charts and graphs presented in this primer; 
however, we have identified the applicable time period for each chart 
and graph. In addition to analyzing data, we talked extensively with 
oil market representatives and experts and also drew upon our 
previously issued work on oil and gasoline markets and work by other 
entities. More information on the scope and methodology of our work is 
presented in appendix 1.

If you have questions about this primer, please contact me at (202) 512-
3841.

Key contributors to this report include Godwin Agbara, Mark Metcalfe, 
Cynthia Norris, Rob Hardison, Kim Raheb, and Sandra Edwards. Copies of 
this primer are available upon request. In addition, it is available at 
no charge on the GAO Web site at http://www.gao.gov.

Signed by:

Jim Wells:

Director, Natural Resources and Environment:

SECTION 1: BACKGROUND:

Q. How much of a barrel of oil is made into gasoline?

A. Gasoline is one of several petroleum products made by refining crude 
oil. As Figure 1 shows, on average, gasoline constitutes almost half of 
the total petroleum products derived from a barrel of crude oil, 
although the amount of gasoline that can be produced from a barrel of 
crude oil varies among individual refineries.

Figure 1: Products Made from a Barrel of Crude Oil (Average for 2000 to 
2004):

[See PDF for image] -graphic text:

Pie graph with six items.

Gasoline: 46.7%; 
Diesel fuel and heating oil: 23.5%; 
Other products[A]: 21.8%; 
Jet fuel: 9.8%; 
Heavy fuel oil: 4.3%; 
Liquefied petroleum gas (LPG): 4.3%.

Source: GAO analysis of EIA data.

Notes: A barrel containing 42 U.S. gallons of crude oil yields slightly 
more than 44 gallons of petroleum products. This "process gain" in 
volume is due to a reduction in density during the refining process. As 
a result, percentages total more than 100 percent.

[A] Other products include petroleum coke, still gas, asphalt and road 
oil, petrochemical feedstock, lubricants, etc.

[End of figure]

Overall, the amount of gasoline a refiner can produce from a barrel of 
crude oil depends, in part, on the configuration (sophistication) of 
the refinery. More sophisticated refineries can squeeze more gasoline 
out of a given barrel of crude oil than less sophisticated ones. 
Refineries in the United States are among the most sophisticated in the 
world. The amount of gasoline produced also depends on the quality of 
crude oil: light crude oil, which is generally low in sulfur, can yield 
more gasoline than heavy crude oil, which tends to be high in 
sulfur.[Footnote 3]

Q. How does gasoline get to the consumer?

A. As Figure 2 shows, gasoline reaches the consumer through a complex 
system that begins with extracting crude oil and transporting it to 
refineries, mostly via pipelines, marine tankers, and barges. [Footnote 
4] At the refineries, crude oil is processed into gasoline and other 
petroleum products. The gasoline is then transported--again, usually 
via pipelines, marine tankers, and barges--to storage terminals for 
wholesale distribution. From there, it is shipped by truck to retail 
stations, where consumers pull up to fill their tanks.

Figure 2: Gasoline Production and Distribution System:

[See PDF for image]

Source: GAO.

[End of figure]

Q. How have gasoline prices changed over time?

A. As shown in Figure 3, the average U.S. retail price for gasoline has 
nearly quadrupled since 1974.

Figure 3: U.S. Retail Price of Gasoline (1974-2004):

[See PDF for image] -graphic text:

Line graph with 371 items.

Month: January 1974; Dollars per gallon: $0.47.
Month: February 1974; Dollars per gallon: $0.49.
Month: March 1974; Dollars per gallon: $0.53.
Month: April 1974; Dollars per gallon: $0.54.
Month: May 1974; Dollars per gallon: $0.55.
Month: June 1974; Dollars per gallon: $0.56.
Month: July 1974; Dollars per gallon: $0.56.
Month: August 1974; Dollars per gallon: $0.55.
Month: September 1974; Dollars per gallon: $0.55.
Month: October 1974; Dollars per gallon: $0.53.
Month: November 1974; Dollars per gallon: $0.53.
Month: December 1974; Dollars per gallon: $0.53.
Month: January 1975; Dollars per gallon: $0.53.
Month: February 1975; Dollars per gallon: $0.53.
Month: March 1975; Dollars per gallon: $0.53.
Month: April 1975; Dollars per gallon: $0.54.
Month: May 1975; Dollars per gallon: $0.55.
Month: June 1975; Dollars per gallon: $0.57.
Month: July 1975; Dollars per gallon: $0.59.
Month: August 1975; Dollars per gallon: $0.60.
Month: September 1975; Dollars per gallon: $0.60.
Month: October 1975; Dollars per gallon: $0.59.
Month: November 1975; Dollars per gallon: $0.59.
Month: December 1975; Dollars per gallon: $0.59.
Month: January 1976; Dollars per gallon: $0.61.
Month: February 1976; Dollars per gallon: $0.60.
Month: March 1976; Dollars per gallon: $0.59.
Month: April 1976; Dollars per gallon: $0.59.
Month: May 1976; Dollars per gallon: $0.60.
Month: June 1976; Dollars per gallon: $0.62.
Month: July 1976; Dollars per gallon: $0.62.
Month: August 1976; Dollars per gallon: $0.63.
Month: September 1976; Dollars per gallon: $0.63.
Month: October 1976; Dollars per gallon: $0.63.
Month: November 1976; Dollars per gallon: $0.63.
Month: December 1976; Dollars per gallon: $0.63.
Month: January 1977; Dollars per gallon: $0.63.
Month: February 1977; Dollars per gallon: $0.64.
Month: March 1977; Dollars per gallon: $0.64.
Month: April 1977; Dollars per gallon: $0.65.
Month: May 1977; Dollars per gallon: $0.66.
Month: June 1977; Dollars per gallon: $0.67.
Month: July 1977; Dollars per gallon: $0.67.
Month: August 1977; Dollars per gallon: $0.67.
Month: September 1977; Dollars per gallon: $0.67.
Month: October 1977; Dollars per gallon: $0.67.
Month: November 1977; Dollars per gallon: $0.66.
Month: December 1977; Dollars per gallon: $0.67.
Month: January 1978; Dollars per gallon: $0.65.
Month: February 1978; Dollars per gallon: $0.65.
Month: March 1978; Dollars per gallon: $0.65.
Month: April 1978; Dollars per gallon: $0.65.
Month: May 1978; Dollars per gallon: $0.66.
Month: June 1978; Dollars per gallon: $0.66.
Month: July 1978; Dollars per gallon: $0.67.
Month: August 1978; Dollars per gallon: $0.68.
Month: September 1978; Dollars per gallon: $0.69.
Month: October 1978; Dollars per gallon: $0.69.
Month: November 1978; Dollars per gallon: $0.70.
Month: December 1978; Dollars per gallon: $0.71.
Month: January 1979; Dollars per gallon: $0.72.
Month: February 1979; Dollars per gallon: $0.73.
Month: March 1979; Dollars per gallon: $0.76.
Month: April 1979; Dollars per gallon: $0.80.
Month: May 1979; Dollars per gallon: $0.84.
Month: June 1979; Dollars per gallon: $0.90.
Month: July 1979; Dollars per gallon: $0.95.
Month: August 1979; Dollars per gallon: $0.99.
Month: September 1979; Dollars per gallon: $1.02.
Month: October 1979; Dollars per gallon: $1.03.
Month: November 1979; Dollars per gallon: $1.04.
Month: December 1979; Dollars per gallon: $1.07.
Month: January 1980; Dollars per gallon: $1.13.
Month: February 1980; Dollars per gallon: $1.21.
Month: March 1980; Dollars per gallon: $1.25.
Month: April 1980; Dollars per gallon: $1.26.
Month: May 1980; Dollars per gallon: $1.27.
Month: June 1980; Dollars per gallon: $1.27.
Month: July 1980; Dollars per gallon: $1.27.
Month: August 1980; Dollars per gallon: $1.27.
Month: September 1980; Dollars per gallon: $1.26.
Month: October 1980; Dollars per gallon: $1.25.
Month: November 1980; Dollars per gallon: $1.25.
Month: December 1980; Dollars per gallon: $1.26.
Month: January 1981; Dollars per gallon: $1.30.
Month: February 1981; Dollars per gallon: $1.38.
Month: March 1981; Dollars per gallon: $1.42.
Month: April 1981; Dollars per gallon: $1.41.
Month: May 1981; Dollars per gallon: $1.40.
Month: June 1981; Dollars per gallon: $1.39.
Month: July 1981; Dollars per gallon: $1.38.
Month: August 1981; Dollars per gallon: $1.38.
Month: September 1981; Dollars per gallon: $1.38.
Month: October 1981; Dollars per gallon: $1.37.
Month: November 1981; Dollars per gallon: $1.37.
Month: December 1981; Dollars per gallon: $1.37.
Month: January 1982; Dollars per gallon: $1.36.
Month: February 1982; Dollars per gallon: $1.33.
Month: March 1982; Dollars per gallon: $1.28.
Month: April 1982; Dollars per gallon: $1.23.
Month: May 1982; Dollars per gallon: $1.24.
Month: June 1982; Dollars per gallon: $1.31.
Month: July 1982; Dollars per gallon: $1.33.
Month: August 1982; Dollars per gallon: $1.32.
Month: September 1982; Dollars per gallon: $1.31.
Month: October 1982; Dollars per gallon: $1.30.
Month: November 1982; Dollars per gallon: $1.28.
Month: December 1982; Dollars per gallon: $1.26.
Month: January 1983; Dollars per gallon: $1.23.
Month: February 1983; Dollars per gallon: $1.19.
Month: March 1983; Dollars per gallon: $1.15.
Month: April 1983; Dollars per gallon: $1.22.
Month: May 1983; Dollars per gallon: $1.26.
Month: June 1983; Dollars per gallon: $1.28.
Month: July 1983; Dollars per gallon: $1.29.
Month: August 1983; Dollars per gallon: $1.29.
Month: September 1983; Dollars per gallon: $1.27.
Month: October 1983; Dollars per gallon: $1.26.
Month: November 1983; Dollars per gallon: $1.24.
Month: December 1983; Dollars per gallon: $1.23.
Month: January 1984; Dollars per gallon: $1.22.
Month: February 1984; Dollars per gallon: $1.21.
Month: March 1984; Dollars per gallon: $1.21.
Month: April 1984; Dollars per gallon: $1.23.
Month: May 1984; Dollars per gallon: $1.24.
Month: June 1984; Dollars per gallon: $1.23.
Month: July 1984; Dollars per gallon: $1.21.
Month: August 1984; Dollars per gallon: $1.20.
Month: September 1984; Dollars per gallon: $1.20.
Month: October 1984; Dollars per gallon: $1.21.
Month: November 1984; Dollars per gallon: $1.21.
Month: December 1984; Dollars per gallon: $1.19.
Month: January 1985; Dollars per gallon: $1.15.
Month: February 1985; Dollars per gallon: $1.13.
Month: March 1985; Dollars per gallon: $1.16.
Month: April 1985; Dollars per gallon: $1.21.
Month: May 1985; Dollars per gallon: $1.23.
Month: June 1985; Dollars per gallon: $1.24.
Month: July 1985; Dollars per gallon: $1.24.
Month: August 1985; Dollars per gallon: $1.23.
Month: September 1985; Dollars per gallon: $1.22.
Month: October 1985; Dollars per gallon: $1.20.
Month: November 1985; Dollars per gallon: $1.21.
Month: December 1985; Dollars per gallon: $1.21.
Month: January 1986; Dollars per gallon: $1.19.
Month: February 1986; Dollars per gallon: $1.12.
Month: March 1986; Dollars per gallon: $0.98.
Month: April 1986; Dollars per gallon: $0.89.
Month: May 1986; Dollars per gallon: $0.92.
Month: June 1986; Dollars per gallon: $0.96.
Month: July 1986; Dollars per gallon: $0.89.
Month: August 1986; Dollars per gallon: $0.84.
Month: September 1986; Dollars per gallon: $0.86.
Month: October 1986; Dollars per gallon: $0.83.
Month: November 1986; Dollars per gallon: $0.82.
Month: December 1986; Dollars per gallon: $0.82.
Month: January 1987; Dollars per gallon: $0.86.
Month: February 1987; Dollars per gallon: $0.91.
Month: March 1987; Dollars per gallon: $0.91.
Month: April 1987; Dollars per gallon: $0.93.
Month: May 1987; Dollars per gallon: $0.94.
Month: June 1987; Dollars per gallon: $0.96.
Month: July 1987; Dollars per gallon: $0.97.
Month: August 1987; Dollars per gallon: $1.00.
Month: September 1987; Dollars per gallon: $0.99.
Month: October 1987; Dollars per gallon: $0.98.
Month: November 1987; Dollars per gallon: $0.98.
Month: December 1987; Dollars per gallon: $0.96.
Month: January 1988; Dollars per gallon: $0.93.
Month: February 1988; Dollars per gallon: $0.91.
Month: March 1988; Dollars per gallon: $0.90.
Month: April 1988; Dollars per gallon: $0.93.
Month: May 1988; Dollars per gallon: $0.96.
Month: June 1988; Dollars per gallon: $0.96.
Month: July 1988; Dollars per gallon: $0.97.
Month: August 1988; Dollars per gallon: $0.99.
Month: September 1988; Dollars per gallon: $0.97.
Month: October 1988; Dollars per gallon: $0.96.
Month: November 1988; Dollars per gallon: $0.95.
Month: December 1988; Dollars per gallon: $0.93.
Month: January 1989; Dollars per gallon: $0.92.
Month: February 1989; Dollars per gallon: $0.93.
Month: March 1989; Dollars per gallon: $0.94.
Month: April 1989; Dollars per gallon: $1.07.
Month: May 1989; Dollars per gallon: $1.12.
Month: June 1989; Dollars per gallon: $1.11.
Month: July 1989; Dollars per gallon: $1.09.
Month: August 1989; Dollars per gallon: $1.06.
Month: September 1989; Dollars per gallon: $1.03.
Month: October 1989; Dollars per gallon: $1.03.
Month: November 1989; Dollars per gallon: $1.00.
Month: December 1989; Dollars per gallon: $0.98.
Month: January 1990; Dollars per gallon: $1.04.
Month: February 1990; Dollars per gallon: $1.04.
Month: March 1990; Dollars per gallon: $1.02.
Month: April 1990; Dollars per gallon: $1.04.
Month: May 1990; Dollars per gallon: $1.06.
Month: June 1990; Dollars per gallon: $1.09.
Month: July 1990; Dollars per gallon: $1.08.
Month: August 1990; Dollars per gallon: $1.19.
Month: September 1990; Dollars per gallon: $1.29.
Month: October 1990; Dollars per gallon: $1.38.
Month: November 1990; Dollars per gallon: $1.38.
Month: December 1990; Dollars per gallon: $1.35.
Month: January 1991; Dollars per gallon: $1.25.
Month: February 1991; Dollars per gallon: $1.14.
Month: March 1991; Dollars per gallon: $1.08.
Month: April 1991; Dollars per gallon: $1.10.
Month: May 1991; Dollars per gallon: $1.16.
Month: June 1991; Dollars per gallon: $1.16.
Month: July 1991; Dollars per gallon: $1.13.
Month: August 1991; Dollars per gallon: $1.14.
Month: September 1991; Dollars per gallon: $1.14.
Month: October 1991; Dollars per gallon: $1.12.
Month: November 1991; Dollars per gallon: $1.13.
Month: December 1991; Dollars per gallon: $1.12.
Month: January 1992; Dollars per gallon: $1.07.
Month: February 1992; Dollars per gallon: $1.05.
Month: March 1992; Dollars per gallon: $1.06.
Month: April 1992; Dollars per gallon: $1.08.
Month: May 1992; Dollars per gallon: $1.14.
Month: June 1992; Dollars per gallon: $1.18.
Month: July 1992; Dollars per gallon: $1.18.
Month: August 1992; Dollars per gallon: $1.16.
Month: September 1992; Dollars per gallon: $1.16.
Month: October 1992; Dollars per gallon: $1.15.
Month: November 1992; Dollars per gallon: $1.16.
Month: December 1992; Dollars per gallon: $1.14.
Month: January 1993; Dollars per gallon: $1.12.
Month: February 1993; Dollars per gallon: $1.11.
Month: March 1993; Dollars per gallon: $1.10.
Month: April 1993; Dollars per gallon: $1.11.
Month: May 1993; Dollars per gallon: $1.13.
Month: June 1993; Dollars per gallon: $1.13.
Month: July 1993; Dollars per gallon: $1.11.
Month: August 1993; Dollars per gallon: $1.10.
Month: September 1993; Dollars per gallon: $1.09.
Month: October 1993; Dollars per gallon: $1.13.
Month: November 1993; Dollars per gallon: $1.11.
Month: December 1993; Dollars per gallon: $1.07.
Month: January 1994; Dollars per gallon: $1.04.
Month: February 1994; Dollars per gallon: $1.05.
Month: March 1994; Dollars per gallon: $1.05.
Month: April 1994; Dollars per gallon: $1.06.
Month: May 1994; Dollars per gallon: $1.08.
Month: June 1994; Dollars per gallon: $1.11.
Month: July 1994; Dollars per gallon: $1.14.
Month: August 1994; Dollars per gallon: $1.18.
Month: September 1994; Dollars per gallon: $1.18.
Month: October 1994; Dollars per gallon: $1.15.
Month: November 1994; Dollars per gallon: $1.16.
Month: December 1994; Dollars per gallon: $1.14.
Month: January 1995; Dollars per gallon: $1.13.
Month: February 1995; Dollars per gallon: $1.12.
Month: March 1995; Dollars per gallon: $1.12.
Month: April 1995; Dollars per gallon: $1.14.
Month: May 1995; Dollars per gallon: $1.20.
Month: June 1995; Dollars per gallon: $1.23.
Month: July 1995; Dollars per gallon: $1.20.
Month: August 1995; Dollars per gallon: $1.16.
Month: September 1995; Dollars per gallon: $1.15.
Month: October 1995; Dollars per gallon: $1.13.
Month: November 1995; Dollars per gallon: $1.10.
Month: December 1995; Dollars per gallon: $1.10.
Month: January 1996; Dollars per gallon: $1.13.
Month: February 1996; Dollars per gallon: $1.12.
Month: March 1996; Dollars per gallon: $1.16.
Month: April 1996; Dollars per gallon: $1.25.
Month: May 1996; Dollars per gallon: $1.32.
Month: June 1996; Dollars per gallon: $1.30.
Month: July 1996; Dollars per gallon: $1.27.
Month: August 1996; Dollars per gallon: $1.24.
Month: September 1996; Dollars per gallon: $1.23.
Month: October 1996; Dollars per gallon: $1.23.
Month: November 1996; Dollars per gallon: $1.25.
Month: December 1996; Dollars per gallon: $1.26.
Month: January 1997; Dollars per gallon: $1.26.
Month: February 1997; Dollars per gallon: $1.26.
Month: March 1997; Dollars per gallon: $1.24.
Month: April 1997; Dollars per gallon: $1.23.
Month: May 1997; Dollars per gallon: $1.23.
Month: June 1997; Dollars per gallon: $1.23.
Month: July 1997; Dollars per gallon: $1.21.
Month: August 1997; Dollars per gallon: $1.25.
Month: September 1997; Dollars per gallon: $1.28.
Month: October 1997; Dollars per gallon: $1.24.
Month: November 1997; Dollars per gallon: $1.21.
Month: December 1997; Dollars per gallon: $1.18.
Month: January 1998; Dollars per gallon: $1.13.
Month: February 1998; Dollars per gallon: $1.08.
Month: March 1998; Dollars per gallon: $1.04.
Month: April 1998; Dollars per gallon: $1.05.
Month: May 1998; Dollars per gallon: $1.09.
Month: June 1998; Dollars per gallon: $1.09.
Month: July 1998; Dollars per gallon: $1.08.
Month: August 1998; Dollars per gallon: $1.05.
Month: September 1998; Dollars per gallon: $1.03.
Month: October 1998; Dollars per gallon: $1.04.
Month: November 1998; Dollars per gallon: $1.03.
Month: December 1998; Dollars per gallon: $0.99.
Month: January 1999; Dollars per gallon: $0.97.
Month: February 1999; Dollars per gallon: $0.96.
Month: March 1999; Dollars per gallon: $0.99.
Month: April 1999; Dollars per gallon: $1.18.
Month: May 1999; Dollars per gallon: $1.18.
Month: June 1999; Dollars per gallon: $1.15.
Month: July 1999; Dollars per gallon: $1.19.
Month: August 1999; Dollars per gallon: $1.26.
Month: September 1999; Dollars per gallon: $1.28.
Month: October 1999; Dollars per gallon: $1.27.
Month: November 1999; Dollars per gallon: $1.26.
Month: December 1999; Dollars per gallon: $1.30.
Month: January 2000; Dollars per gallon: $1.30.
Month: February 2000; Dollars per gallon: $1.37.
Month: March 2000; Dollars per gallon: $1.54.
Month: April 2000; Dollars per gallon: $1.51.
Month: May 2000; Dollars per gallon: $1.50.
Month: June 2000; Dollars per gallon: $1.62.
Month: July 2000; Dollars per gallon: $1.59.
Month: August 2000; Dollars per gallon: $1.51.
Month: September 2000; Dollars per gallon: $1.58.
Month: October 2000; Dollars per gallon: $1.56.
Month: November 2000; Dollars per gallon: $1.56.
Month: December 2000; Dollars per gallon: $1.49.
Month: January 2001; Dollars per gallon: $1.47.
Month: February 2001; Dollars per gallon: $1.48.
Month: March 2001; Dollars per gallon: $1.45.
Month: April 2001; Dollars per gallon: $1.56.
Month: May 2001; Dollars per gallon: $1.73.
Month: June 2001; Dollars per gallon: $1.64.
Month: July 2001; Dollars per gallon: $1.48.
Month: August 2001; Dollars per gallon: $1.43.
Month: September 2001; Dollars per gallon: $1.53.
Month: October 2001; Dollars per gallon: $1.36.
Month: November 2001; Dollars per gallon: $1.26.
Month: December 2001; Dollars per gallon: $1.13.
Month: January 2002; Dollars per gallon: $1.14.
Month: February 2002; Dollars per gallon: $1.13.
Month: March 2002; Dollars per gallon: $1.24.
Month: April 2002; Dollars per gallon: $1.41.
Month: May 2002; Dollars per gallon: $1.42.
Month: June 2002; Dollars per gallon: $1.40.
Month: July 2002; Dollars per gallon: $1.41.
Month: August 2002; Dollars per gallon: $1.42.
Month: September 2002; Dollars per gallon: $1.42.
Month: October 2002; Dollars per gallon: $1.45.
Month: November 2002; Dollars per gallon: $1.45.
Month: December 2002; Dollars per gallon: $1.39.
Month: January 2003; Dollars per gallon: $1.47.
Month: February 2003; Dollars per gallon: $1.64.
Month: March 2003; Dollars per gallon: $1.75.
Month: April 2003; Dollars per gallon: $1.66.
Month: May 2003; Dollars per gallon: $1.54.
Month: June 2003; Dollars per gallon: $1.51.
Month: July 2003; Dollars per gallon: $1.52.
Month: August 2003; Dollars per gallon: $1.63.
Month: September 2003; Dollars per gallon: $1.73.
Month: October 2003; Dollars per gallon: $1.60.
Month: November 2003; Dollars per gallon: $1.54.
Month: December 2003; Dollars per gallon: $1.49.
Month: January 2004; Dollars per gallon: $1.59.
Month: February 2004; Dollars per gallon: $1.67.
Month: March 2004; Dollars per gallon: $1.77.
Month: April 2004; Dollars per gallon: $1.83.
Month: May 2004; Dollars per gallon: $2.01.
Month: June 2004; Dollars per gallon: $2.04.
Month: July 2004; Dollars per gallon: $1.94.
Month: August 2004; Dollars per gallon: $1.90.
Month: September 2004; Dollars per gallon: $1.89.
Month: October 2004; Dollars per gallon: $2.03.
Month: November 2004; Dollars per gallon: $2.01.

Source: GAO analysis of Bureau of Labor Statistics (BLS) data.

Note: Price data are monthly U.S. city averages for regular gasoline. 
Prices in 1974 and 1975 are for leaded gasoline, and prices for 1976 
onward are for unleaded gasoline.

[End of figure]

However, as shown in Figure 4, the average U.S. retail gasoline price 
adjusted for inflation was actually substantially lower in 2004 than it 
was during its peak in 1981. Even so, the average U.S. retail gasoline 
price has experienced frequent ups and downs, or volatility, and was 
significantly higher in 2004 than it was as recently as 2002. In fact, 
the average U.S. gasoline price in 2004, adjusted for inflation, was 
the highest since 1985.

Figure 4: U.S. Retail Price of Gasoline Adjusted for Inflation (1974- 
2004):

[See PDF for image] -graphic text:

Line graph with 371 items:

Month: January 1974; Dollars per gallon: $1.86.
Month: February 1974; Dollars per gallon: $1.89.
Month: March 1974; Dollars per gallon: $1.95.
Month: April 1974; Dollars per gallon: $1.94.
Month: May 1974; Dollars per gallon: $1.95.
Month: June 1974; Dollars per gallon: $1.96.
Month: July 1974; Dollars per gallon: $1.95.
Month: August 1974; Dollars per gallon: $1.93.
Month: September 1974; Dollars per gallon: $1.91.
Month: October 1974; Dollars per gallon: $1.87.
Month: November 1974; Dollars per gallon: $1.84.
Month: December 1974; Dollars per gallon: $1.83.
Month: January 1975; Dollars per gallon: $1.82.
Month: February 1975; Dollars per gallon: $1.81.
Month: March 1975; Dollars per gallon: $1.81.
Month: April 1975; Dollars per gallon: $1.81.
Month: May 1975; Dollars per gallon: $1.82.
Month: June 1975; Dollars per gallon: $1.85.
Month: July 1975; Dollars per gallon: $1.88.
Month: August 1975; Dollars per gallon: $1.88.
Month: September 1975; Dollars per gallon: $1.87.
Month: October 1975; Dollars per gallon: $1.86.
Month: November 1975; Dollars per gallon: $1.84.
Month: December 1975; Dollars per gallon: $1.82.
Month: January 1976; Dollars per gallon: $1.88.
Month: February 1976; Dollars per gallon: $1.86.
Month: March 1976; Dollars per gallon: $1.85.
Month: April 1976; Dollars per gallon: $1.84.
Month: May 1976; Dollars per gallon: $1.85.
Month: June 1976; Dollars per gallon: $1.87.
Month: July 1976; Dollars per gallon: $1.87.
Month: August 1976; Dollars per gallon: $1.88.
Month: September 1976; Dollars per gallon: $1.87.
Month: October 1976; Dollars per gallon: $1.86.
Month: November 1976; Dollars per gallon: $1.85.
Month: December 1976; Dollars per gallon: $1.82.
Month: January 1977; Dollars per gallon: $1.81.
Month: February 1977; Dollars per gallon: $1.81.
Month: March 1977; Dollars per gallon: $1.81.
Month: April 1977; Dollars per gallon: $1.82.
Month: May 1977; Dollars per gallon: $1.83.
Month: June 1977; Dollars per gallon: $1.83.
Month: July 1977; Dollars per gallon: $1.82.
Month: August 1977; Dollars per gallon: $1.82.
Month: September 1977; Dollars per gallon: $1.81.
Month: October 1977; Dollars per gallon: $1.80.
Month: November 1977; Dollars per gallon: $1.80.
Month: December 1977; Dollars per gallon: $1.80.
Month: January 1978; Dollars per gallon: $1.75.
Month: February 1978; Dollars per gallon: $1.74.
Month: March 1978; Dollars per gallon: $1.73.
Month: April 1978; Dollars per gallon: $1.72.
Month: May 1978; Dollars per gallon: $1.72.
Month: June 1978; Dollars per gallon: $1.72.
Month: July 1978; Dollars per gallon: $1.74.
Month: August 1978; Dollars per gallon: $1.75.
Month: September 1978; Dollars per gallon: $1.75.
Month: October 1978; Dollars per gallon: $1.74.
Month: November 1978; Dollars per gallon: $1.76.
Month: December 1978; Dollars per gallon: $1.77.
Month: January 1979; Dollars per gallon: $1.77.
Month: February 1979; Dollars per gallon: $1.78.
Month: March 1979; Dollars per gallon: $1.79.
Month: April 1979; Dollars per gallon: $1.84.
Month: May 1979; Dollars per gallon: $1.86.
Month: June 1979; Dollars per gallon: $1.87.
Month: July 1979; Dollars per gallon: $1.89.
Month: August 1979; Dollars per gallon: $1.91.
Month: September 1979; Dollars per gallon: $1.92.
Month: October 1979; Dollars per gallon: $1.91.
Month: November 1979; Dollars per gallon: $1.94.
Month: December 1979; Dollars per gallon: $1.94.
Month: January 1980; Dollars per gallon: $1.98.
Month: February 1980; Dollars per gallon: $2.01.
Month: March 1980; Dollars per gallon: $2.02.
Month: April 1980; Dollars per gallon: $2.02.
Month: May 1980; Dollars per gallon: $2.00.
Month: June 1980; Dollars per gallon: $1.98.
Month: July 1980; Dollars per gallon: $1.96.
Month: August 1980; Dollars per gallon: $1.96.
Month: September 1980; Dollars per gallon: $1.95.
Month: October 1980; Dollars per gallon: $1.95.
Month: November 1980; Dollars per gallon: $1.96.
Month: December 1980; Dollars per gallon: $1.94.
Month: January 1981; Dollars per gallon: $1.95.
Month: February 1981; Dollars per gallon: $1.97.
Month: March 1981; Dollars per gallon: $1.98.
Month: April 1981; Dollars per gallon: $1.97.
Month: May 1981; Dollars per gallon: $1.95.
Month: June 1981; Dollars per gallon: $1.92.
Month: July 1981; Dollars per gallon: $1.90.
Month: August 1981; Dollars per gallon: $1.89.
Month: September 1981; Dollars per gallon: $1.89.
Month: October 1981; Dollars per gallon: $1.89.
Month: November 1981; Dollars per gallon: $1.89.
Month: December 1981; Dollars per gallon: $1.89.
Month: January 1982; Dollars per gallon: $1.87.
Month: February 1982; Dollars per gallon: $1.85.
Month: March 1982; Dollars per gallon: $1.81.
Month: April 1982; Dollars per gallon: $1.77.
Month: May 1982; Dollars per gallon: $1.76.
Month: June 1982; Dollars per gallon: $1.79.
Month: July 1982; Dollars per gallon: $1.80.
Month: August 1982; Dollars per gallon: $1.78.
Month: September 1982; Dollars per gallon: $1.76.
Month: October 1982; Dollars per gallon: $1.74.
Month: November 1982; Dollars per gallon: $1.74.
Month: December 1982; Dollars per gallon: $1.72.
Month: January 1983; Dollars per gallon: $1.70.
Month: February 1983; Dollars per gallon: $1.67.
Month: March 1983; Dollars per gallon: $1.65.
Month: April 1983; Dollars per gallon: $1.70.
Month: May 1983; Dollars per gallon: $1.71.
Month: June 1983; Dollars per gallon: $1.71.
Month: July 1983; Dollars per gallon: $1.72.
Month: August 1983; Dollars per gallon: $1.71.
Month: September 1983; Dollars per gallon: $1.70.
Month: October 1983; Dollars per gallon: $1.69.
Month: November 1983; Dollars per gallon: $1.69.
Month: December 1983; Dollars per gallon: $1.69.
Month: January 1984; Dollars per gallon: $1.67.
Month: February 1984; Dollars per gallon: $1.65.
Month: March 1984; Dollars per gallon: $1.66.
Month: April 1984; Dollars per gallon: $1.67.
Month: May 1984; Dollars per gallon: $1.66.
Month: June 1984; Dollars per gallon: $1.64.
Month: July 1984; Dollars per gallon: $1.62.
Month: August 1984; Dollars per gallon: $1.60.
Month: September 1984; Dollars per gallon: $1.61.
Month: October 1984; Dollars per gallon: $1.62.
Month: November 1984; Dollars per gallon: $1.64.
Month: December 1984; Dollars per gallon: $1.63.
Month: January 1985; Dollars per gallon: $1.59.
Month: February 1985; Dollars per gallon: $1.58.
Month: March 1985; Dollars per gallon: $1.59.
Month: April 1985; Dollars per gallon: $1.63.
Month: May 1985; Dollars per gallon: $1.63.
Month: June 1985; Dollars per gallon: $1.63.
Month: July 1985; Dollars per gallon: $1.63.
Month: August 1985; Dollars per gallon: $1.62.
Month: September 1985; Dollars per gallon: $1.61.
Month: October 1985; Dollars per gallon: $1.61.
Month: November 1985; Dollars per gallon: $1.63.
Month: December 1985; Dollars per gallon: $1.62.
Month: January 1986; Dollars per gallon: $1.61.
Month: February 1986; Dollars per gallon: $1.57.
Month: March 1986; Dollars per gallon: $1.47.
Month: April 1986; Dollars per gallon: $1.41.
Month: May 1986; Dollars per gallon: $1.44.
Month: June 1986; Dollars per gallon: $1.44.
Month: July 1986; Dollars per gallon: $1.39.
Month: August 1986; Dollars per gallon: $1.35.
Month: September 1986; Dollars per gallon: $1.37.
Month: October 1986; Dollars per gallon: $1.36.
Month: November 1986; Dollars per gallon: $1.38.
Month: December 1986; Dollars per gallon: $1.38.
Month: January 1987; Dollars per gallon: $1.40.
Month: February 1987; Dollars per gallon: $1.44.
Month: March 1987; Dollars per gallon: $1.45.
Month: April 1987; Dollars per gallon: $1.48.
Month: May 1987; Dollars per gallon: $1.47.
Month: June 1987; Dollars per gallon: $1.44.
Month: July 1987; Dollars per gallon: $1.45.
Month: August 1987; Dollars per gallon: $1.47.
Month: September 1987; Dollars per gallon: $1.46.
Month: October 1987; Dollars per gallon: $1.48.
Month: November 1987; Dollars per gallon: $1.50.
Month: December 1987; Dollars per gallon: $1.49.
Month: January 1988; Dollars per gallon: $1.46.
Month: February 1988; Dollars per gallon: $1.43.
Month: March 1988; Dollars per gallon: $1.43.
Month: April 1988; Dollars per gallon: $1.45.
Month: May 1988; Dollars per gallon: $1.47.
Month: June 1988; Dollars per gallon: $1.43.
Month: July 1988; Dollars per gallon: $1.44.
Month: August 1988; Dollars per gallon: $1.46.
Month: September 1988; Dollars per gallon: $1.45.
Month: October 1988; Dollars per gallon: $1.45.
Month: November 1988; Dollars per gallon: $1.46.
Month: December 1988; Dollars per gallon: $1.43.
Month: January 1989; Dollars per gallon: $1.41.
Month: February 1989; Dollars per gallon: $1.42.
Month: March 1989; Dollars per gallon: $1.43.
Month: April 1989; Dollars per gallon: $1.53.
Month: May 1989; Dollars per gallon: $1.57.
Month: June 1989; Dollars per gallon: $1.54.
Month: July 1989; Dollars per gallon: $1.51.
Month: August 1989; Dollars per gallon: $1.49.
Month: September 1989; Dollars per gallon: $1.46.
Month: October 1989; Dollars per gallon: $1.48.
Month: November 1989; Dollars per gallon: $1.46.
Month: December 1989; Dollars per gallon: $1.44.
Month: January 1990; Dollars per gallon: $1.46.
Month: February 1990; Dollars per gallon: $1.47.
Month: March 1990; Dollars per gallon: $1.46.
Month: April 1990; Dollars per gallon: $1.49.
Month: May 1990; Dollars per gallon: $1.50.
Month: June 1990; Dollars per gallon: $1.49.
Month: July 1990; Dollars per gallon: $1.50.
Month: August 1990; Dollars per gallon: $1.57.
Month: September 1990; Dollars per gallon: $1.62.
Month: October 1990; Dollars per gallon: $1.69.
Month: November 1990; Dollars per gallon: $1.69.
Month: December 1990; Dollars per gallon: $1.68.
Month: January 1991; Dollars per gallon: $1.59.
Month: February 1991; Dollars per gallon: $1.52.
Month: March 1991; Dollars per gallon: $1.48.
Month: April 1991; Dollars per gallon: $1.51.
Month: May 1991; Dollars per gallon: $1.55.
Month: June 1991; Dollars per gallon: $1.53.
Month: July 1991; Dollars per gallon: $1.50.
Month: August 1991; Dollars per gallon: $1.51.
Month: September 1991; Dollars per gallon: $1.51.
Month: October 1991; Dollars per gallon: $1.50.
Month: November 1991; Dollars per gallon: $1.52.
Month: December 1991; Dollars per gallon: $1.50.
Month: January 1992; Dollars per gallon: $1.46.
Month: February 1992; Dollars per gallon: $1.45.
Month: March 1992; Dollars per gallon: $1.46.
Month: April 1992; Dollars per gallon: $1.48.
Month: May 1992; Dollars per gallon: $1.51.
Month: June 1992; Dollars per gallon: $1.52.
Month: July 1992; Dollars per gallon: $1.51.
Month: August 1992; Dollars per gallon: $1.50.
Month: September 1992; Dollars per gallon: $1.49.
Month: October 1992; Dollars per gallon: $1.51.
Month: November 1992; Dollars per gallon: $1.51.
Month: December 1992; Dollars per gallon: $1.49.
Month: January 1993; Dollars per gallon: $1.47.
Month: February 1993; Dollars per gallon: $1.48.
Month: March 1993; Dollars per gallon: $1.46.
Month: April 1993; Dollars per gallon: $1.47.
Month: May 1993; Dollars per gallon: $1.48.
Month: June 1993; Dollars per gallon: $1.45.
Month: July 1993; Dollars per gallon: $1.43.
Month: August 1993; Dollars per gallon: $1.42.
Month: September 1993; Dollars per gallon: $1.41.
Month: October 1993; Dollars per gallon: $1.46.
Month: November 1993; Dollars per gallon: $1.46.
Month: December 1993; Dollars per gallon: $1.43.
Month: January 1994; Dollars per gallon: $1.41.
Month: February 1994; Dollars per gallon: $1.41.
Month: March 1994; Dollars per gallon: $1.40.
Month: April 1994; Dollars per gallon: $1.42.
Month: May 1994; Dollars per gallon: $1.43.
Month: June 1994; Dollars per gallon: $1.43.
Month: July 1994; Dollars per gallon: $1.45.
Month: August 1994; Dollars per gallon: $1.49.
Month: September 1994; Dollars per gallon: $1.48.
Month: October 1994; Dollars per gallon: $1.49.
Month: November 1994; Dollars per gallon: $1.50.
Month: December 1994; Dollars per gallon: $1.49.
Month: January 1995; Dollars per gallon: $1.48.
Month: February 1995; Dollars per gallon: $1.47.
Month: March 1995; Dollars per gallon: $1.47.
Month: April 1995; Dollars per gallon: $1.50.
Month: May 1995; Dollars per gallon: $1.54.
Month: June 1995; Dollars per gallon: $1.53.
Month: July 1995; Dollars per gallon: $1.51.
Month: August 1995; Dollars per gallon: $1.48.
Month: September 1995; Dollars per gallon: $1.48.
Month: October 1995; Dollars per gallon: $1.47.
Month: November 1995; Dollars per gallon: $1.46.
Month: December 1995; Dollars per gallon: $1.45.
Month: January 1996; Dollars per gallon: $1.47.
Month: February 1996; Dollars per gallon: $1.46.
Month: March 1996; Dollars per gallon: $1.49.
Month: April 1996; Dollars per gallon: $1.55.
Month: May 1996; Dollars per gallon: $1.60.
Month: June 1996; Dollars per gallon: $1.57.
Month: July 1996; Dollars per gallon: $1.54.
Month: August 1996; Dollars per gallon: $1.52.
Month: September 1996; Dollars per gallon: $1.51.
Month: October 1996; Dollars per gallon: $1.52.
Month: November 1996; Dollars per gallon: $1.54.
Month: December 1996; Dollars per gallon: $1.53.
Month: January 1997; Dollars per gallon: $1.52.
Month: February 1997; Dollars per gallon: $1.51.
Month: March 1997; Dollars per gallon: $1.52.
Month: April 1997; Dollars per gallon: $1.53.
Month: May 1997; Dollars per gallon: $1.52.
Month: June 1997; Dollars per gallon: $1.49.
Month: July 1997; Dollars per gallon: $1.48.
Month: August 1997; Dollars per gallon: $1.52.
Month: September 1997; Dollars per gallon: $1.53.
Month: October 1997; Dollars per gallon: $1.52.
Month: November 1997; Dollars per gallon: $1.50.
Month: December 1997; Dollars per gallon: $1.48.
Month: January 1998; Dollars per gallon: $1.46.
Month: February 1998; Dollars per gallon: $1.43.
Month: March 1998; Dollars per gallon: $1.40.
Month: April 1998; Dollars per gallon: $1.41.
Month: May 1998; Dollars per gallon: $1.44.
Month: June 1998; Dollars per gallon: $1.41.
Month: July 1998; Dollars per gallon: $1.40.
Month: August 1998; Dollars per gallon: $1.38.
Month: September 1998; Dollars per gallon: $1.37.
Month: October 1998; Dollars per gallon: $1.40.
Month: November 1998; Dollars per gallon: $1.40.
Month: December 1998; Dollars per gallon: $1.36.
Month: January 1999; Dollars per gallon: $1.35.
Month: February 1999; Dollars per gallon: $1.34.
Month: March 1999; Dollars per gallon: $1.37.
Month: April 1999; Dollars per gallon: $1.53.
Month: May 1999; Dollars per gallon: $1.52.
Month: June 1999; Dollars per gallon: $1.47.
Month: July 1999; Dollars per gallon: $1.49.
Month: August 1999; Dollars per gallon: $1.54.
Month: September 1999; Dollars per gallon: $1.54.
Month: October 1999; Dollars per gallon: $1.56.
Month: November 1999; Dollars per gallon: $1.55.
Month: December 1999; Dollars per gallon: $1.58.
Month: January 2000; Dollars per gallon: $1.58.
Month: February 2000; Dollars per gallon: $1.60.
Month: March 2000; Dollars per gallon: $1.72.
Month: April 2000; Dollars per gallon: $1.70.
Month: May 2000; Dollars per gallon: $1.69.
Month: June 2000; Dollars per gallon: $1.70.
Month: July 2000; Dollars per gallon: $1.68.
Month: August 2000; Dollars per gallon: $1.64.
Month: September 2000; Dollars per gallon: $1.65.
Month: October 2000; Dollars per gallon: $1.65.
Month: November 2000; Dollars per gallon: $1.65.
Month: December 2000; Dollars per gallon: $1.59.
Month: January 2001; Dollars per gallon: $1.52.
Month: February 2001; Dollars per gallon: $1.53.
Month: March 2001; Dollars per gallon: $1.53.
Month: April 2001; Dollars per gallon: $1.60.
Month: May 2001; Dollars per gallon: $1.68.
Month: June 2001; Dollars per gallon: $1.59.
Month: July 2001; Dollars per gallon: $1.53.
Month: August 2001; Dollars per gallon: $1.51.
Month: September 2001; Dollars per gallon: $1.58.
Month: October 2001; Dollars per gallon: $1.52.
Month: November 2001; Dollars per gallon: $1.49.
Month: December 2001; Dollars per gallon: $1.39.
Month: January 2002; Dollars per gallon: $1.39.
Month: February 2002; Dollars per gallon: $1.39.
Month: March 2002; Dollars per gallon: $1.47.
Month: April 2002; Dollars per gallon: $1.57.
Month: May 2002; Dollars per gallon: $1.58.
Month: June 2002; Dollars per gallon: $1.53.
Month: July 2002; Dollars per gallon: $1.54.
Month: August 2002; Dollars per gallon: $1.54.
Month: September 2002; Dollars per gallon: $1.54.
Month: October 2002; Dollars per gallon: $1.57.
Month: November 2002; Dollars per gallon: $1.58.
Month: December 2002; Dollars per gallon: $1.54.
Month: January 2003; Dollars per gallon: $1.58.
Month: February 2003; Dollars per gallon: $1.65.
Month: March 2003; Dollars per gallon: $1.67.
Month: April 2003; Dollars per gallon: $1.64.
Month: May 2003; Dollars per gallon: $1.57.
Month: June 2003; Dollars per gallon: $1.51.
Month: July 2003; Dollars per gallon: $1.52.
Month: August 2003; Dollars per gallon: $1.58.
Month: September 2003; Dollars per gallon: $1.63.
Month: October 2003; Dollars per gallon: $1.60.
Month: November 2003; Dollars per gallon: $1.57.
Month: December 2003; Dollars per gallon: $1.55.
Month: January 2004; Dollars per gallon: $1.58.
Month: February 2004; Dollars per gallon: $1.62.
Month: March 2004; Dollars per gallon: $1.68.
Month: April 2004; Dollars per gallon: $1.71.
Month: May 2004; Dollars per gallon: $1.78.
Month: June 2004; Dollars per gallon: $1.74.
Month: July 2004; Dollars per gallon: $1.69.
Month: August 2004; Dollars per gallon: $1.67.
Month: September 2004; Dollars per gallon: $1.67.
Month: October 2004; Dollars per gallon: $1.76.
Month: November 2004; Dollars per gallon: $1.73.

Source: GAO analysis of BLS data.

Note: Price data are monthly U.S. city averages for regular gasoline. 
Prices in 1974 and 1975 are for leaded gasoline, and prices for 1976 
onward are for unleaded gasoline. Gasoline prices were adjusted to 2003 
dollars using the Bureau of Labor Statistics' Consumer Price Index for 
All Urban Consumers: All Items.

[End of figure]

No one factor can entirely explain the variations in gasoline prices. 
As will be discussed in the following sections, the dynamics of 
gasoline prices are a function of many complex factors that are 
sometimes interconnected. Before explaining each key factor and the 
underlying causes of its behavior, we first examine the key elements 
that make up the price of a gallon of gasoline.

[End of Section 1]

Section 2: Elements of Gasoline Price:

Q. What do consumers pay for in a gallon of gasoline?

A. According to EIA, four elements determine the price consumers pay 
for a gallon of gasoline at a given time: (1) the price of crude oil, 
(2) taxes, (3) refining costs and profits, and (4) distribution and 
marketing costs and profits. Figure 5 shows the average percentage of 
each of these elements in the U.S. price of a gallon of gasoline in 
2004.

Figure 5: Elements of Gasoline Price (2004 Average):

[See PDF for image] -graphic text:

Pie graph with four items.

Crude oil: 48%;
Taxes: 23%; 
Refining: 17%; 
Distribution and marketing: 12%.

Sources: GAO analysis of EIA data; GAO (photo).

[End of figure]

Crude Oil:

According to EIA's data, the price that refiners paid for crude oil in 
2004 was the largest component of the price of regular gasoline. On 
average, crude oil price accounted for slightly less than half of the 
average price of a gallon of regular gasoline. However, the proportion 
of the price of gasoline that crude oil constitutes is not constant 
over time, nor is the share of the other elements as shown in Figure 6.

Figure 6: Elements of Gasoline Price (1990-2004):

[See PDF for image] -graphic text:

Area graph with three groups with 170 items each.

Month: August 1990; 
Percentage of the cost:
Crude oil: 46%; 
Refining: 28%; 
Distribution and Marketing: 5%; 
Taxes: 20%.

Month: September 1990; 
Percentage of the cost:
Crude oil: 57%; 
Refining: 18%; 
Distribution and Marketing: 6%; 
Taxes: 19%.

Month: October 1990; 
Percentage of the cost:
Crude oil: 59%; 
Refining: 5%; 
Distribution and Marketing: 18%; 
Taxes: 18%.

Month: November 1990; 
Percentage of the cost:
Crude oil: 55%; 
Refining: 5%; 
Distribution and Marketing: 22%; 
Taxes: 19%.

Month: December 1990; 
Percentage of the cost:
Crude oil: 46%; 
Refining: 2%; 
Distribution and Marketing: 29%; 
Taxes: 22%.

Month: January 1991; 
Percentage of the cost:
Crude oil: 46%; 
Refining: 11%; 
Distribution and Marketing: 17%; 
Taxes: 27%.

Month: February 1991; 
Percentage of the cost:
Crude oil: 42%; 
Refining: 17%; 
Distribution and Marketing: 12%; 
Taxes: 29%.

Month: March 1991; 
Percentage of the cost:
Crude oil: 41%; 
Refining: 25%; 
Distribution and Marketing: 4%; 
Taxes: 30%.

Month: April 1991; 
Percentage of the cost:
Crude oil: 41%; 
Refining: 22%; 
Distribution and Marketing: 7%; 
Taxes: 29%.

Month: May 1991; 
Percentage of the cost:
Crude oil: 40%; 
Refining: 20%; 
Distribution and Marketing: 12%; 
Taxes: 28%.

Month: June 1991; 
Percentage of the cost:
Crude oil: 38%; 
Refining: 18%; 
Distribution and Marketing: 16%; 
Taxes: 28%.

Month: July 1991; 
Percentage of the cost:
Crude oil: 40%; 
Refining: 16%; 
Distribution and Marketing: 14%; 
Taxes: 29%.

Month: August 1991; 
Percentage of the cost:
Crude oil: 40%; 
Refining: 18%; 
Distribution and Marketing: 13%; 
Taxes: 28%.

Month: September 1991; 
Percentage of the cost:
Crude oil: 41%; 
Refining: 15%; 
Distribution and Marketing: 16%; 
Taxes: 29%.

Month: October 1991; 
Percentage of the cost:
Crude oil: 44%; 
Refining: 14%; 
Distribution and Marketing: 13%; 
Taxes: 29%.

Month: November 1991; 
Percentage of the cost:
Crude oil: 43%; 
Refining: 14%; 
Distribution and Marketing: 14%; 
Taxes: 29%.

Month: December 1991; 
Percentage of the cost:
Crude oil: 39%; 
Refining: 10%; 
Distribution and Marketing: 22%; 
Taxes: 29%.

Month: January 1992; 
Percentage of the cost:
Crude oil: 38%; 
Refining: 12%; 
Distribution and Marketing: 18%; 
Taxes: 31%.

Month: February 1992; 
Percentage of the cost:
Crude oil: 39%; 
Refining: 16%; 
Distribution and Marketing: 13%; 
Taxes: 32%.

Month: March 1992; 
Percentage of the cost:
Crude oil: 39%; 
Refining: 17%; 
Distribution and Marketing: 12%; 
Taxes: 32%.

Month: April 1992; 
Percentage of the cost:
Crude oil: 40%; 
Refining: 19%; 
Distribution and Marketing: 11%; 
Taxes: 31%.

Month: May 1992; 
Percentage of the cost:
Crude oil: 40%; 
Refining: 18%; 
Distribution and Marketing: 12%; 
Taxes: 29%.

Month: June 1992; 
Percentage of the cost:
Crude oil: 42%; 
Refining: 16%; 
Distribution and Marketing: 15%; 
Taxes: 28%.

Month: July 1992; 
Percentage of the cost:
Crude oil: 42%; 
Refining: 11%; 
Distribution and Marketing: 19%; 
Taxes: 28%.

Month: August 1992; 
Percentage of the cost:
Crude oil: 42%; 
Refining: 13%; 
Distribution and Marketing: 17%; 
Taxes: 29%.

Month: September 1992; 
Percentage of the cost:
Crude oil: 42%; 
Refining: 13%; 
Distribution and Marketing: 16%; 
Taxes: 29%.

Month: October 1992; 
Percentage of the cost:
Crude oil: 42%; 
Refining: 13%; 
Distribution and Marketing: 16%; 
Taxes: 29%.

Month: November 1992; 
Percentage of the cost:
Crude oil: 40%; 
Refining: 10%; 
Distribution and Marketing: 22%; 
Taxes: 29%.

Month: December 1992; 
Percentage of the cost:
Crude oil: 39%; 
Refining: 10%; 
Distribution and Marketing: 22%; 
Taxes: 30%.

Month: January 1993; 
Percentage of the cost:
Crude oil: 38%; 
Refining: 12%; 
Distribution and Marketing: 19%; 
Taxes: 31%.

Month: February 1993; 
Percentage of the cost:
Crude oil: 40%; 
Refining: 11%; 
Distribution and Marketing: 18%; 
Taxes: 31%.

Month: March 1993; 
Percentage of the cost:
Crude oil: 41%; 
Refining: 14%; 
Distribution and Marketing: 15%; 
Taxes: 31%.

Month: April 1993; 
Percentage of the cost:
Crude oil: 41%; 
Refining: 16%; 
Distribution and Marketing: 13%; 
Taxes: 30%.

Month: May 1993; 
Percentage of the cost:
Crude oil: 39%; 
Refining: 17%; 
Distribution and Marketing: 15%; 
Taxes: 30%.

Month: June 1993; 
Percentage of the cost:
Crude oil: 37%; 
Refining: 14%; 
Distribution and Marketing: 19%; 
Taxes: 30%.

Month: July 1993; 
Percentage of the cost:
Crude oil: 36%; 
Refining: 13%; 
Distribution and Marketing: 21%; 
Taxes: 30%.

Month: August 1993; 
Percentage of the cost:
Crude oil: 36%; 
Refining: 16%; 
Distribution and Marketing: 18%; 
Taxes: 31%.

Month: September 1993; 
Percentage of the cost:
Crude oil: 35%; 
Refining: 14%; 
Distribution and Marketing: 20%; 
Taxes: 31%.

Month: October 1993; 
Percentage of the cost:
Crude oil: 34%; 
Refining: 12%; 
Distribution and Marketing: 20%; 
Taxes: 34%.

Month: November 1993; 
Percentage of the cost:
Crude oil: 32%; 
Refining: 9%; 
Distribution and Marketing: 24%; 
Taxes: 34%.

Month: December 1993; 
Percentage of the cost:
Crude oil: 29%; 
Refining: 8%; 
Distribution and Marketing: 26%; 
Taxes: 36%.

Month: January 1994; 
Percentage of the cost:
Crude oil: 31%; 
Refining: 13%; 
Distribution and Marketing: 20%; 
Taxes: 37%.

Month: February 1994; 
Percentage of the cost:
Crude oil: 31%; 
Refining: 14%; 
Distribution and Marketing: 19%; 
Taxes: 37%.

Month: March 1994; 
Percentage of the cost:
Crude oil: 31%; 
Refining: 15%; 
Distribution and Marketing: 18%; 
Taxes: 37%.

Month: April 1994; 
Percentage of the cost:
Crude oil: 34%; 
Refining: 15%; 
Distribution and Marketing: 15%; 
Taxes: 36%.

Month: May 1994; 
Percentage of the cost:
Crude oil: 36%; 
Refining: 13%; 
Distribution and Marketing: 16%; 
Taxes: 35%.

Month: June 1994; 
Percentage of the cost:
Crude oil: 38%; 
Refining: 13%; 
Distribution and Marketing: 15%; 
Taxes: 34%.

Month: July 1994; 
Percentage of the cost:
Crude oil: 38%; 
Refining: 14%; 
Distribution and Marketing: 15%; 
Taxes: 33%.

Month: August 1994; 
Percentage of the cost:
Crude oil: 35%; 
Refining: 15%; 
Distribution and Marketing: 18%; 
Taxes: 32%.

Month: September 1994; 
Percentage of the cost:
Crude oil: 34%; 
Refining: 8%; 
Distribution and Marketing: 26%; 
Taxes: 32%.

Month: October 1994; 
Percentage of the cost:
Crude oil: 35%; 
Refining: 11%; 
Distribution and Marketing: 21%; 
Taxes: 33%.

Month: November 1994; 
Percentage of the cost:
Crude oil: 35%; 
Refining: 10%; 
Distribution and Marketing: 22%; 
Taxes: 33%.

Month: December 1994; 
Percentage of the cost:
Crude oil: 35%; 
Refining: 7%; 
Distribution and Marketing: 24%; 
Taxes: 34%.

Month: January 1995; 
Percentage of the cost:
Crude oil: 36%; 
Refining: 11%; 
Distribution and Marketing: 19%; 
Taxes: 34%.

Month: February 1995; 
Percentage of the cost:
Crude oil: 38%; 
Refining: 9%; 
Distribution and Marketing: 18%; 
Taxes: 34%.

Month: March 1995; 
Percentage of the cost:
Crude oil: 38%; 
Refining: 10%; 
Distribution and Marketing: 17%; 
Taxes: 34%.

Month: April 1995; 
Percentage of the cost:
Crude oil: 39%; 
Refining: 15%; 
Distribution and Marketing: 12%; 
Taxes: 33%.

Month: May 1995; 
Percentage of the cost:
Crude oil: 38%; 
Refining: 17%; 
Distribution and Marketing: 14%; 
Taxes: 31%.

Month: June 1995; 
Percentage of the cost:
Crude oil: 35%; 
Refining: 14%; 
Distribution and Marketing: 20%; 
Taxes: 31%.

Month: July 1995; 
Percentage of the cost:
Crude oil: 34%; 
Refining: 11%; 
Distribution and Marketing: 23%; 
Taxes: 32%.

Month: August 1995; 
Percentage of the cost:
Crude oil: 36%; 
Refining: 12%; 
Distribution and Marketing: 20%; 
Taxes: 33%.

Month: September 1995; 
Percentage of the cost:
Crude oil: 36%; 
Refining: 13%; 
Distribution and Marketing: 18%; 
Taxes: 33%.

Month: October 1995; 
Percentage of the cost:
Crude oil: 36%; 
Refining: 9%; 
Distribution and Marketing: 21%; 
Taxes: 34%.

Month: November 1995; 
Percentage of the cost:
Crude oil: 37%; 
Refining: 10%; 
Distribution and Marketing: 18%; 
Taxes: 35%.

Month: December 1995; 
Percentage of the cost:
Crude oil: 39%; 
Refining: 10%; 
Distribution and Marketing: 17%; 
Taxes: 34%.

Month: January 1996; 
Percentage of the cost:
Crude oil: 39%; 
Refining: 9%; 
Distribution and Marketing: 18%; 
Taxes: 34%.

Month: February 1996; 
Percentage of the cost:
Crude oil: 39%; 
Refining: 11%; 
Distribution and Marketing: 15%; 
Taxes: 34%.

Month: March 1996; 
Percentage of the cost:
Crude oil: 41%; 
Refining: 13%; 
Distribution and Marketing: 13%; 
Taxes: 33%.

Month: April 1996; 
Percentage of the cost:
Crude oil: 42%; 
Refining: 16%; 
Distribution and Marketing: 12%; 
Taxes: 30%.

Month: May 1996; 
Percentage of the cost:
Crude oil: 38%; 
Refining: 14%; 
Distribution and Marketing: 19%; 
Taxes: 29%.

Month: June 1996; 
Percentage of the cost:
Crude oil: 37%; 
Refining: 13%; 
Distribution and Marketing: 21%; 
Taxes: 29%.

Month: July 1996; 
Percentage of the cost:
Crude oil: 38%; 
Refining: 13%; 
Distribution and Marketing: 19%; 
Taxes: 30%.

Month: August 1996; 
Percentage of the cost:
Crude oil: 41%; 
Refining: 10%; 
Distribution and Marketing: 18%; 
Taxes: 31%.

Month: September 1996; 
Percentage of the cost:
Crude oil: 43%; 
Refining: 9%; 
Distribution and Marketing: 17%; 
Taxes: 31%.

Month: October 1996; 
Percentage of the cost:
Crude oil: 46%; 
Refining: 9%; 
Distribution and Marketing: 15%; 
Taxes: 31%.

Month: November 1996; 
Percentage of the cost:
Crude oil: 44%; 
Refining: 10%; 
Distribution and Marketing: 16%; 
Taxes: 30%.

Month: December 1996; 
Percentage of the cost:
Crude oil: 45%; 
Refining: 9%; 
Distribution and Marketing: 16%; 
Taxes: 30%.

Month: January 1997; 
Percentage of the cost:
Crude oil: 45%; 
Refining: 10%; 
Distribution and Marketing: 14%; 
Taxes: 30%.

Month: February 1997; 
Percentage of the cost:
Crude oil: 42%; 
Refining: 10%; 
Distribution and Marketing: 17%; 
Taxes: 30%.

Month: March 1997; 
Percentage of the cost:
Crude oil: 39%; 
Refining: 14%; 
Distribution and Marketing: 16%; 
Taxes: 31%.

Month: April 1997; 
Percentage of the cost:
Crude oil: 36%; 
Refining: 15%; 
Distribution and Marketing: 17%; 
Taxes: 31%.

Month: May 1997; 
Percentage of the cost:
Crude oil: 37%; 
Refining: 15%; 
Distribution and Marketing: 16%; 
Taxes: 31%.

Month: June 1997; 
Percentage of the cost:
Crude oil: 35%; 
Refining: 12%; 
Distribution and Marketing: 21%; 
Taxes: 31%.

Month: July 1997; 
Percentage of the cost:
Crude oil: 36%; 
Refining: 15%; 
Distribution and Marketing: 16%; 
Taxes: 32%.

Month: August 1997; 
Percentage of the cost:
Crude oil: 35%; 
Refining: 21%; 
Distribution and Marketing: 13%; 
Taxes: 31%.

Month: September 1997; 
Percentage of the cost:
Crude oil: 35%; 
Refining: 15%; 
Distribution and Marketing: 19%; 
Taxes: 30%.

Month: October 1997; 
Percentage of the cost:
Crude oil: 38%; 
Refining: 11%; 
Distribution and Marketing: 20%; 
Taxes: 31%.

Month: November 1997; 
Percentage of the cost:
Crude oil: 38%; 
Refining: 10%; 
Distribution and Marketing: 21%; 
Taxes: 32%.

Month: December 1997; 
Percentage of the cost:
Crude oil: 36%; 
Refining: 10%; 
Distribution and Marketing: 21%; 
Taxes: 33%.

Month: January 1998; 
Percentage of the cost:
Crude oil: 33%; 
Refining: 11%; 
Distribution and Marketing: 21%; 
Taxes: 35%.

Month: February 1998; 
Percentage of the cost:
Crude oil: 32%; 
Refining: 13%; 
Distribution and Marketing: 19%; 
Taxes: 37%.

Month: March 1998; 
Percentage of the cost:
Crude oil: 30%; 
Refining: 14%; 
Distribution and Marketing: 18%; 
Taxes: 38%.

Month: April 1998; 
Percentage of the cost:
Crude oil: 30%; 
Refining: 18%; 
Distribution and Marketing: 14%; 
Taxes: 37%.

Month: May 1998; 
Percentage of the cost:
Crude oil: 29%; 
Refining: 19%; 
Distribution and Marketing: 16%; 
Taxes: 36%.

Month: June 1998; 
Percentage of the cost:
Crude oil: 27%; 
Refining: 17%; 
Distribution and Marketing: 20%; 
Taxes: 36%.

Month: July 1998; 
Percentage of the cost:
Crude oil: 27%; 
Refining: 16%; 
Distribution and Marketing: 21%; 
Taxes: 36%.

Month: August 1998; 
Percentage of the cost:
Crude oil: 27%; 
Refining: 13%; 
Distribution and Marketing: 23%; 
Taxes: 37%.

Month: September 1998; 
Percentage of the cost:
Crude oil: 31%; 
Refining: 12%; 
Distribution and Marketing: 19%; 
Taxes: 38%.

Month: October 1998; 
Percentage of the cost:
Crude oil: 29%; 
Refining: 13%; 
Distribution and Marketing: 20%; 
Taxes: 38%.

Month: November 1998; 
Percentage of the cost:
Crude oil: 28%; 
Refining: 10%; 
Distribution and Marketing: 24%; 
Taxes: 39%.

Month: December 1998; 
Percentage of the cost:
Crude oil: 25%; 
Refining: 9%; 
Distribution and Marketing: 25%; 
Taxes: 41%.

Month: January 1999; 
Percentage of the cost:
Crude oil: 26%; 
Refining: 11%; 
Distribution and Marketing: 23%; 
Taxes: 40%.

Month: February 1999; 
Percentage of the cost:
Crude oil: 27%; 
Refining: 9%; 
Distribution and Marketing: 23%; 
Taxes: 41%.

Month: March 1999; 
Percentage of the cost:
Crude oil: 29%; 
Refining: 19%; 
Distribution and Marketing: 14%; 
Taxes: 38%.

Month: April 1999; 
Percentage of the cost:
Crude oil: 31%; 
Refining: 16%; 
Distribution and Marketing: 19%; 
Taxes: 33%.

Month: May 1999; 
Percentage of the cost:
Crude oil: 34%; 
Refining: 12%; 
Distribution and Marketing: 21%; 
Taxes: 33%.

Month: June 1999; 
Percentage of the cost:
Crude oil: 34%; 
Refining: 15%; 
Distribution and Marketing: 17%; 
Taxes: 34%.

Month: July 1999; 
Percentage of the cost:
Crude oil: 37%; 
Refining: 18%; 
Distribution and Marketing: 12%; 
Taxes: 33%.

Month: August 1999; 
Percentage of the cost:
Crude oil: 38%; 
Refining: 15%; 
Distribution and Marketing: 15%; 
Taxes: 31%.

Month: September 1999; 
Percentage of the cost:
Crude oil: 41%; 
Refining: 12%; 
Distribution and Marketing: 17%; 
Taxes: 30%.

Month: October 1999; 
Percentage of the cost:
Crude oil: 42%; 
Refining: 8%; 
Distribution and Marketing: 20%; 
Taxes: 30%.

Month: November 1999; 
Percentage of the cost:
Crude oil: 44%; 
Refining: 10%; 
Distribution and Marketing: 15%; 
Taxes: 30%.

Month: December 1999; 
Percentage of the cost:
Crude oil: 46%; 
Refining: 7%; 
Distribution and Marketing: 17%; 
Taxes: 30%.

Month: January 2000; 
Percentage of the cost:
Crude oil: 47%; 
Refining: 9%; 
Distribution and Marketing: 14%; 
Taxes: 30%.

Month: February 2000; 
Percentage of the cost:
Crude oil: 48%; 
Refining: 14%; 
Distribution and Marketing: 11%; 
Taxes: 28%.

Month: March 2000; 
Percentage of the cost:
Crude oil: 45%; 
Refining: 15%; 
Distribution and Marketing: 15%; 
Taxes: 25%.

Month: April 2000; 
Percentage of the cost:
Crude oil: 41%; 
Refining: 11%; 
Distribution and Marketing: 22%; 
Taxes: 26%.

Month: May 2000; 
Percentage of the cost:
Crude oil: 42%; 
Refining: 20%; 
Distribution and Marketing: 12%; 
Taxes: 26%.

Month: June 2000; 
Percentage of the cost:
Crude oil: 42%; 
Refining: 22%; 
Distribution and Marketing: 12%; 
Taxes: 24%.

Month: July 2000; 
Percentage of the cost:
Crude oil: 44%; 
Refining: 13%; 
Distribution and Marketing: 18%; 
Taxes: 25%.

Month: August 2000; 
Percentage of the cost:
Crude oil: 47%; 
Refining: 15%; 
Distribution and Marketing: 11%; 
Taxes: 26%.

Month: September 2000; 
Percentage of the cost:
Crude oil: 48%; 
Refining: 16%; 
Distribution and Marketing: 11%; 
Taxes: 25%.

Month: October 2000; 
Percentage of the cost:
Crude oil: 48%; 
Refining: 15%; 
Distribution and Marketing: 13%; 
Taxes: 25%.

Month: November 2000; 
Percentage of the cost:
Crude oil: 49%; 
Refining: 12%; 
Distribution and Marketing: 14%; 
Taxes: 25%.

Month: December 2000; 
Percentage of the cost:
Crude oil: 43%; 
Refining: 9%; 
Distribution and Marketing: 20%; 
Taxes: 27%.

Month: January 2001; 
Percentage of the cost:
Crude oil: 42%; 
Refining: 19%; 
Distribution and Marketing: 14%; 
Taxes: 26%.

Month: February 2001; 
Percentage of the cost:
Crude oil: 43%; 
Refining: 17%; 
Distribution and Marketing: 14%; 
Taxes: 26%.

Month: March 2001; 
Percentage of the cost:
Crude oil: 41%; 
Refining: 20%; 
Distribution and Marketing: 13%; 
Taxes: 27%.

Month: April 2001; 
Percentage of the cost:
Crude oil: 37%; 
Refining: 32%; 
Distribution and Marketing: 8%; 
Taxes: 24%.

Month: May 2001; 
Percentage of the cost:
Crude oil: 35%; 
Refining: 26%; 
Distribution and Marketing: 17%; 
Taxes: 22%.

Month: June 2001; 
Percentage of the cost:
Crude oil: 37%; 
Refining: 13%; 
Distribution and Marketing: 27%; 
Taxes: 23%.

Month: July 2001; 
Percentage of the cost:
Crude oil: 40%; 
Refining: 10%; 
Distribution and Marketing: 24%; 
Taxes: 26%.

Month: August 2001; 
Percentage of the cost:
Crude oil: 41%; 
Refining: 20%; 
Distribution and Marketing: 13%; 
Taxes: 26%.

Month: September 2001; 
Percentage of the cost:
Crude oil: 37%; 
Refining: 18%; 
Distribution and Marketing: 20%; 
Taxes: 25%.

Month: October 2001; 
Percentage of the cost:
Crude oil: 36%; 
Refining: 11%; 
Distribution and Marketing: 24%; 
Taxes: 28%.

Month: November 2001; 
Percentage of the cost:
Crude oil: 35%; 
Refining: 11%; 
Distribution and Marketing: 22%; 
Taxes: 32%.

Month: December 2001; 
Percentage of the cost:
Crude oil: 36%; 
Refining: 12%; 
Distribution and Marketing: 17%; 
Taxes: 35%.

Month: January 2002; 
Percentage of the cost:
Crude oil: 37%; 
Refining: 13%; 
Distribution and Marketing: 16%; 
Taxes: 34%.

Month: February 2002; 
Percentage of the cost:
Crude oil: 39%; 
Refining: 12%; 
Distribution and Marketing: 15%; 
Taxes: 34%.

Month: March 2002; 
Percentage of the cost:
Crude oil: 42%; 
Refining: 18%; 
Distribution and Marketing: 10%; 
Taxes: 30%.

Month: April 2002; 
Percentage of the cost:
Crude oil: 41%; 
Refining: 16%; 
Distribution and Marketing: 16%; 
Taxes: 27%.

Month: May 2002; 
Percentage of the cost:
Crude oil: 43%; 
Refining: 13%; 
Distribution and Marketing: 17%; 
Taxes: 27%.

Month: June 2002; 
Percentage of the cost:
Crude oil: 41%; 
Refining: 15%; 
Distribution and Marketing: 16%; 
Taxes: 27%.

Month: July 2002; 
Percentage of the cost:
Crude oil: 43%; 
Refining: 14%; 
Distribution and Marketing: 16%; 
Taxes: 27%.

Month: August 2002; 
Percentage of the cost:
Crude oil: 45%; 
Refining: 12%; 
Distribution and Marketing: 17%; 
Taxes: 27%.

Month: September 2002; 
Percentage of the cost:
Crude oil: 47%; 
Refining: 10%; 
Distribution and Marketing: 16%; 
Taxes: 27%.

Month: October 2002; 
Percentage of the cost:
Crude oil: 44%; 
Refining: 15%; 
Distribution and Marketing: 15%; 
Taxes: 26%.

Month: November 2002; 
Percentage of the cost:
Crude oil: 41%; 
Refining: 11%; 
Distribution and Marketing: 21%; 
Taxes: 26%.

Month: December 2002; 
Percentage of the cost:
Crude oil: 46%; 
Refining: 11%; 
Distribution and Marketing: 15%; 
Taxes: 27%.

Month: January 2003; 
Percentage of the cost:
Crude oil: 50%; 
Refining: 11%; 
Distribution and Marketing: 13%; 
Taxes: 26%.

Month: February 2003; 
Percentage of the cost:
Crude oil: 49%; 
Refining: 16%; 
Distribution and Marketing: 12%; 
Taxes: 23%.

Month: March 2003; 
Percentage of the cost:
Crude oil: 43%; 
Refining: 17%; 
Distribution and Marketing: 18%; 
Taxes: 22%.

Month: April 2003; 
Percentage of the cost:
Crude oil: 39%; 
Refining: 15%; 
Distribution and Marketing: 23%; 
Taxes: 24%.

Month: May 2003; 
Percentage of the cost:
Crude oil: 41%; 
Refining: 15%; 
Distribution and Marketing: 19%; 
Taxes: 25%.

Month: June 2003; 
Percentage of the cost:
Crude oil: 45%; 
Refining: 15%; 
Distribution and Marketing: 15%; 
Taxes: 25%.

Month: July 2003; 
Percentage of the cost:
Crude oil: 45%; 
Refining: 15%; 
Distribution and Marketing: 15%; 
Taxes: 25%.

Month: August 2003; 
Percentage of the cost:
Crude oil: 43%; 
Refining: 23%; 
Distribution and Marketing: 11%; 
Taxes: 23%.

Month: September 2003; 
Percentage of the cost:
Crude oil: 37%; 
Refining: 15%; 
Distribution and Marketing: 25%; 
Taxes: 22%.

Month: October 2003; 
Percentage of the cost:
Crude oil: 42%; 
Refining: 15%; 
Distribution and Marketing: 19%; 
Taxes: 24%.

Month: November 2003; 
Percentage of the cost:
Crude oil: 45%; 
Refining: 12%; 
Distribution and Marketing: 18%; 
Taxes: 25%.

Month: December 2003; 
Percentage of the cost:
Crude oil: 47%; 
Refining: 12%; 
Distribution and Marketing: 16%; 
Taxes: 25%.

Month: January 2004; 
Percentage of the cost:
Crude oil: 47%; 
Refining: 17%; 
Distribution and Marketing: 13%; 
Taxes: 24%.

Month: February 2004; 
Percentage of the cost:
Crude oil: 46%; 
Refining: 19%; 
Distribution and Marketing: 12%; 
Taxes: 23%.

Month: March 2004; 
Percentage of the cost:
Crude oil: 45%; 
Refining: 19%; 
Distribution and Marketing: 14%; 
Taxes: 22%.

Month: April 2004; 
Percentage of the cost:
Crude oil: 44%; 
Refining: 22%; 
Distribution and Marketing: 12%; 
Taxes: 21%.

Month: May 2004; 
Percentage of the cost:
Crude oil: 44%; 
Refining: 27%; 
Distribution and Marketing: 10%; 
Taxes: 19%.

Month: June 2004; 
Percentage of the cost:
Crude oil: 42%; 
Refining: 20%; 
Distribution and Marketing: 19%; 
Taxes: 19%.

Month: July 2004; 
Percentage of the cost:
Crude oil: 46%; 
Refining: 21%; 
Distribution and Marketing: 14%; 
Taxes: 20%.

Month: August 2004; 
Percentage of the cost:
Crude oil: 51%; 
Refining: 14%; 
Distribution and Marketing: 15%; 
Taxes: 20%.

Month: September 2004; 
Percentage of the cost:
Crude oil: 53%; 
Refining: 16%; 
Distribution and Marketing: 12%; 
Taxes: 20%.

Source: GAO analysis of EIA data.

[End of figure]

Taxes:

On average, taxes accounted for 23 percent of what consumers paid for a 
gallon of gasoline in 2004, according to EIA's data. This percentage 
includes estimated federal and average state taxes totaling 44 cents 
per gallon (see Fig. 7).[Footnote 5] Federal taxes accounted for 18.4 
cents of this total, while state taxes averaged 25.6 cents per gallon, 
although taxes vary among states. A chart showing total gasoline taxes 
for each of the 50 states and the District of Columbia is presented in 
section 4 of this primer.

Figure 7: Estimated Federal and Average State Gasoline Taxes Per Gallon 
(2004):

[See PDF for image] -graphic text:

Pie graph with 2 items.

Average state tax: 25.6 cents per gallon; 
Federal tax: 18.4 cents per gallon; 
Total: 44 cents per gallon.

Sources: GAO analysis of API data; GAO (photo).

[End of figure]

Refining:

On average, refining costs and profits made up about 17 percent of the 
pump price for regular gasoline in 2004, based on EIA data. This 
element of the pump price includes the labor, materials, energy, and 
other costs of refining crude oil through a number of physical and 
chemical transformations to create the products in Figure 1. It also 
includes the profits to refinery owners.

Distribution and Marketing:

According to EIA data, the costs and profits associated with 
distribution and marketing of gasoline constituted about 12 percent of 
the average price of a gallon of regular gasoline in 2004. This price 
element includes the costs of distributing and marketing gasoline from 
refiners to wholesale marketers and/or retail marketers and the profits 
made by the wholesale and retail marketers.

While we have provided a snapshot of the key components of the retail 
price of gasoline at any given point in time, the snapshot approach 
does not explain why the price that consumers pay changes over time and 
varies across geographic areas, nor does it explain the influences 
behind this behavior. Sections 3 and 4 provide more insight into the 
dynamic behavior of retail gasoline prices by examining the factors 
that cause these changes in their broader, and often global, contexts.

[End of section]

Section 3: Variations in Gasoline Prices over Time:

Q. What are the key factors causing gasoline prices to change over time?

A. A number of key factors cause the retail price of gasoline to vary 
over time. First, and most importantly, gasoline price changes are 
caused by changes in the price of crude oil. As Figure 8 shows, the 
trend in gasoline prices has generally tracked the trend in crude oil 
prices, although the two do not necessarily rise and fall in lockstep. 
Second, gasoline prices vary because of changes in how much gasoline we 
demand relative to the supply. Third, federal and state requirements 
calling for special gasoline blends to improve air quality can make it 
more costly to produce gasoline, thus increasing its price. Fourth, 
seasonal factors affect demand and supply, and hence, the price of 
gasoline. Fifth, changes in taxes levied on gasoline have affected 
gasoline prices over the past decade, but because federal and state 
gasoline taxes remained relatively constant in recent years, they have 
not significantly contributed to recent volatility in gasoline prices. 
Sixth, changes within the petroleum industry, such as mergers, can also 
cause the price of gasoline to change over time. How these key factors 
are, in turn, affected by other influences is explained in the answers 
to subsequent questions in this section.

Figure 8: Crude Oil and Gasoline Prices (1974-2004):

[See PDF for image] -graphic text:

Line graph with 2 lines with 369 items each.

Month: January 1974; 
Crude oil price (Dollars per gallon): $0.18; 
Gasoline price (Dollars per gallon): $0.47.

Month: February 1974; 
Crude oil price (Dollars per gallon): $0.20; 
Gasoline price (Dollars per gallon): $0.49.

Month: March 1974; 
Crude oil price (Dollars per gallon): $0.21; 
Gasoline price (Dollars per gallon): $0.53.

Month: April 1974; 
Crude oil price (Dollars per gallon): $0.22; 
Gasoline price (Dollars per gallon): $0.54.

Month: May 1974; 
Crude oil price (Dollars per gallon): $0.22; 
Gasoline price (Dollars per gallon): $0.55.

Month: June 1974; 
Crude oil price (Dollars per gallon): $0.23; 
Gasoline price (Dollars per gallon): $0.56.

Month: July 1974; 
Crude oil price (Dollars per gallon): $0.22; 
Gasoline price (Dollars per gallon): $0.56.

Month: August 1974; 
Crude oil price (Dollars per gallon): $0.22; 
Gasoline price (Dollars per gallon): $0.55.

Month: September 1974; 
Crude oil price (Dollars per gallon): $0.22; 
Gasoline price (Dollars per gallon): $0.55.

Month: October 1974; 
Crude oil price (Dollars per gallon): $0.22; 
Gasoline price (Dollars per gallon): $0.53.

Month: November 1974; 
Crude oil price (Dollars per gallon): $0.22; 
Gasoline price (Dollars per gallon): $0.53.

Month: December 1974; 
Crude oil price (Dollars per gallon): $0.22; 
Gasoline price (Dollars per gallon): $0.53.

Month: January 1975; 
Crude oil price (Dollars per gallon): $0.23; 
Gasoline price (Dollars per gallon): $0.53.

Month: February 1975; 
Crude oil price (Dollars per gallon): $0.24; 
Gasoline price (Dollars per gallon): $0.53.

Month: March 1975; 
Crude oil price (Dollars per gallon): $0.24; 
Gasoline price (Dollars per gallon): $0.53.

Month: April 1975; 
Crude oil price (Dollars per gallon): $0.23; 
Gasoline price (Dollars per gallon): $0.54.

Month: May 1975; 
Crude oil price (Dollars per gallon): $0.23; 
Gasoline price (Dollars per gallon): $0.55.

Month: June 1975; 
Crude oil price (Dollars per gallon): $0.25; 
Gasoline price (Dollars per gallon): $0.57.

Month: July 1975; 
Crude oil price (Dollars per gallon): $0.25; 
Gasoline price (Dollars per gallon): $0.59.

Month: August 1975; 
Crude oil price (Dollars per gallon): $0.26; 
Gasoline price (Dollars per gallon): $0.60.

Month: September 1975; 
Crude oil price (Dollars per gallon): $0.26; 
Gasoline price (Dollars per gallon): $0.60.

Month: October 1975; 
Crude oil price (Dollars per gallon): $0.26; 
Gasoline price (Dollars per gallon): $0.59.

Month: November 1975; 
Crude oil price (Dollars per gallon): $0.26; 
Gasoline price (Dollars per gallon): $0.59.

Month: December 1975; 
Crude oil price (Dollars per gallon): $0.26; 
Gasoline price (Dollars per gallon): $0.59.

Month: January 1976; 
Crude oil price (Dollars per gallon): $0.26; 
Gasoline price (Dollars per gallon): $0.61.

Month: February 1976; 
Crude oil price (Dollars per gallon): $0.25; 
Gasoline price (Dollars per gallon): $0.60.

Month: March 1976; 
Crude oil price (Dollars per gallon): $0.25; 
Gasoline price (Dollars per gallon): $0.59.

Month: April 1976; 
Crude oil price (Dollars per gallon): $0.25; 
Gasoline price (Dollars per gallon): $0.59.

Month: May 1976; 
Crude oil price (Dollars per gallon): $0.25; 
Gasoline price (Dollars per gallon): $0.60.

Month: June 1976; 
Crude oil price (Dollars per gallon): $0.26; 
Gasoline price (Dollars per gallon): $0.62.

Month: July 1976; 
Crude oil price (Dollars per gallon): $0.26; 
Gasoline price (Dollars per gallon): $0.62.

Month: August 1976; 
Crude oil price (Dollars per gallon): $0.26; 
Gasoline price (Dollars per gallon): $0.63.

Month: September 1976; 
Crude oil price (Dollars per gallon): $0.26; 
Gasoline price (Dollars per gallon): $0.63.

Month: October 1976; 
Crude oil price (Dollars per gallon): $0.27; 
Gasoline price (Dollars per gallon): $0.63.

Month: November 1976; 
Crude oil price (Dollars per gallon): $0.27; 
Gasoline price (Dollars per gallon): $0.63.

Month: December 1976; 
Crude oil price (Dollars per gallon): $0.27; 
Gasoline price (Dollars per gallon): $0.63.

Month: January 1977; 
Crude oil price (Dollars per gallon): $0.28; 
Gasoline price (Dollars per gallon): $0.63.

Month: February 1977; 
Crude oil price (Dollars per gallon): $0.28; 
Gasoline price (Dollars per gallon): $0.64.

Month: March 1977; 
Crude oil price (Dollars per gallon): $0.28; 
Gasoline price (Dollars per gallon): $0.64.

Month: April 1977; 
Crude oil price (Dollars per gallon): $0.28; 
Gasoline price (Dollars per gallon): $0.65.

Month: May 1977; 
Crude oil price (Dollars per gallon): $0.28; 
Gasoline price (Dollars per gallon): $0.66.

Month: June 1977; 
Crude oil price (Dollars per gallon): $0.29; 
Gasoline price (Dollars per gallon): $0.67.

Month: July 1977; 
Crude oil price (Dollars per gallon): $0.28; 
Gasoline price (Dollars per gallon): $0.67.

Month: August 1977; 
Crude oil price (Dollars per gallon): $0.29; 
Gasoline price (Dollars per gallon): $0.67.

Month: September 1977; 
Crude oil price (Dollars per gallon): $0.29; 
Gasoline price (Dollars per gallon): $0.67.

Month: October 1977; 
Crude oil price (Dollars per gallon): $0.29; 
Gasoline price (Dollars per gallon): $0.67.

Month: November 1977; 
Crude oil price (Dollars per gallon): $0.29; 
Gasoline price (Dollars per gallon): $0.66.

Month: December 1977; 
Crude oil price (Dollars per gallon): $0.29; 
Gasoline price (Dollars per gallon): $0.67.

Month: January 1978; 
Crude oil price (Dollars per gallon): $0.29; 
Gasoline price (Dollars per gallon): $0.65.

Month: February 1978; 
Crude oil price (Dollars per gallon): $0.29; 
Gasoline price (Dollars per gallon): $0.65.

Month: March 1978; 
Crude oil price (Dollars per gallon): $0.29; 
Gasoline price (Dollars per gallon): $0.65.

Month: April 1978; 
Crude oil price (Dollars per gallon): $0.29; 
Gasoline price (Dollars per gallon): $0.65.

Month: May 1978; 
Crude oil price (Dollars per gallon): $0.29; 
Gasoline price (Dollars per gallon): $0.66.

Month: June 1978; 
Crude oil price (Dollars per gallon): $0.30; 
Gasoline price (Dollars per gallon): $0.66.

Month: July 1978; 
Crude oil price (Dollars per gallon): $0.30; 
Gasoline price (Dollars per gallon): $0.67.

Month: August 1978; 
Crude oil price (Dollars per gallon): $0.30; 
Gasoline price (Dollars per gallon): $0.68.

Month: September 1978; 
Crude oil price (Dollars per gallon): $0.30; 
Gasoline price (Dollars per gallon): $0.69.

Month: October 1978; 
Crude oil price (Dollars per gallon): $0.30; 
Gasoline price (Dollars per gallon): $0.69.

Month: November 1978; 
Crude oil price (Dollars per gallon): $0.30; 
Gasoline price (Dollars per gallon): $0.70.

Month: December 1978; 
Crude oil price (Dollars per gallon): $0.31; 
Gasoline price (Dollars per gallon): $0.71.

Month: January 1979; 
Crude oil price (Dollars per gallon): $0.31; 
Gasoline price (Dollars per gallon): $0.72.

Month: February 1979; 
Crude oil price (Dollars per gallon): $0.32; 
Gasoline price (Dollars per gallon): $0.73.

Month: March 1979; 
Crude oil price (Dollars per gallon): $0.33; 
Gasoline price (Dollars per gallon): $0.76.

Month: April 1979; 
Crude oil price (Dollars per gallon): $0.35; 
Gasoline price (Dollars per gallon): $0.80.

Month: May 1979; 
Crude oil price (Dollars per gallon): $0.37; 
Gasoline price (Dollars per gallon): $0.84.

Month: June 1979; 
Crude oil price (Dollars per gallon): $0.40; 
Gasoline price (Dollars per gallon): $0.90.

Month: July 1979; 
Crude oil price (Dollars per gallon): $0.44; 
Gasoline price (Dollars per gallon): $0.95.

Month: August 1979; 
Crude oil price (Dollars per gallon): $0.47; 
Gasoline price (Dollars per gallon): $0.99.

Month: September 1979; 
Crude oil price (Dollars per gallon): $0.48; 
Gasoline price (Dollars per gallon): $1.02.

Month: October 1979; 
Crude oil price (Dollars per gallon): $0.49; 
Gasoline price (Dollars per gallon): $1.03.

Month: November 1979; 
Crude oil price (Dollars per gallon): $0.52; 
Gasoline price (Dollars per gallon): $1.04.

Month: December 1979; 
Crude oil price (Dollars per gallon): $0.56; 
Gasoline price (Dollars per gallon): $1.07.

Month: January 1980; 
Crude oil price (Dollars per gallon): $0.59; 
Gasoline price (Dollars per gallon): $1.13.

Month: February 1980; 
Crude oil price (Dollars per gallon): $0.62; 
Gasoline price (Dollars per gallon): $1.21.

Month: March 1980; 
Crude oil price (Dollars per gallon): $0.64; 
Gasoline price (Dollars per gallon): $1.25.

Month: April 1980; 
Crude oil price (Dollars per gallon): $0.65; 
Gasoline price (Dollars per gallon): $1.26.

Month: May 1980; 
Crude oil price (Dollars per gallon): $0.66; 
Gasoline price (Dollars per gallon): $1.27.

Month: June 1980; 
Crude oil price (Dollars per gallon): $0.69; 
Gasoline price (Dollars per gallon): $1.27.

Month: July 1980; 
Crude oil price (Dollars per gallon): $0.68; 
Gasoline price (Dollars per gallon): $1.27.

Month: August 1980; 
Crude oil price (Dollars per gallon): $0.68; 
Gasoline price (Dollars per gallon): $1.27.

Month: September 1980; 
Crude oil price (Dollars per gallon): $0.69; 
Gasoline price (Dollars per gallon): $1.26.

Month: October 1980; 
Crude oil price (Dollars per gallon): $0.70; 
Gasoline price (Dollars per gallon): $1.25.

Month: November 1980; 
Crude oil price (Dollars per gallon): $0.71; 
Gasoline price (Dollars per gallon): $1.25.

Month: December 1980; 
Crude oil price (Dollars per gallon): $0.75; 
Gasoline price (Dollars per gallon): $1.26.

Month: January 1981; 
Crude oil price (Dollars per gallon): $0.83; 
Gasoline price (Dollars per gallon): $1.30.

Month: February 1981; 
Crude oil price (Dollars per gallon): $0.89; 
Gasoline price (Dollars per gallon): $1.38.

Month: March 1981; 
Crude oil price (Dollars per gallon): $0.89; 
Gasoline price (Dollars per gallon): $1.42.

Month: April 1981; 
Crude oil price (Dollars per gallon): $0.87; 
Gasoline price (Dollars per gallon): $1.41.

Month: May 1981; 
Crude oil price (Dollars per gallon): $0.86; 
Gasoline price (Dollars per gallon): $1.40.

Month: June 1981; 
Crude oil price (Dollars per gallon): $0.83; 
Gasoline price (Dollars per gallon): $1.39.

Month: July 1981; 
Crude oil price (Dollars per gallon): $0.83; 
Gasoline price (Dollars per gallon): $1.38.

Month: August 1981; 
Crude oil price (Dollars per gallon): $0.82; 
Gasoline price (Dollars per gallon): $1.38.

Month: September 1981; 
Crude oil price (Dollars per gallon): $0.81; 
Gasoline price (Dollars per gallon): $1.38.

Month: October 1981; 
Crude oil price (Dollars per gallon): $0.81; 
Gasoline price (Dollars per gallon): $1.37.

Month: November 1981; 
Crude oil price (Dollars per gallon): $0.82; 
Gasoline price (Dollars per gallon): $1.37.

Month: December 1981; 
Crude oil price (Dollars per gallon): $0.82; 
Gasoline price (Dollars per gallon): $1.37.

Month: January 1982; 
Crude oil price (Dollars per gallon): $0.81; 
Gasoline price (Dollars per gallon): $1.36.

Month: February 1982; 
Crude oil price (Dollars per gallon): $0.80; 
Gasoline price (Dollars per gallon): $1.33.

Month: March 1982; 
Crude oil price (Dollars per gallon): $0.76; 
Gasoline price (Dollars per gallon): $1.28.

Month: April 1982; 
Crude oil price (Dollars per gallon): $0.73; 
Gasoline price (Dollars per gallon): $1.23.

Month: May 1982; 
Crude oil price (Dollars per gallon): $0.74; 
Gasoline price (Dollars per gallon): $1.24.

Month: June 1982; 
Crude oil price (Dollars per gallon): $0.76; 
Gasoline price (Dollars per gallon): $1.31.

Month: July 1982; 
Crude oil price (Dollars per gallon): $0.76; 
Gasoline price (Dollars per gallon): $1.33.

Month: August 1982; 
Crude oil price (Dollars per gallon): $0.75; 
Gasoline price (Dollars per gallon): $1.32.

Month: September 1982; 
Crude oil price (Dollars per gallon): $0.75; 
Gasoline price (Dollars per gallon): $1.31.

Month: October 1982; 
Crude oil price (Dollars per gallon): $0.76; 
Gasoline price (Dollars per gallon): $1.30.

Month: November 1982; 
Crude oil price (Dollars per gallon): $0.76; 
Gasoline price (Dollars per gallon): $1.28.

Month: December 1982; 
Crude oil price (Dollars per gallon): $0.75; 
Gasoline price (Dollars per gallon): $1.26.

Month: January 1983; 
Crude oil price (Dollars per gallon): $0.73; 
Gasoline price (Dollars per gallon): $1.23.

Month: February 1983; 
Crude oil price (Dollars per gallon): $0.70; 
Gasoline price (Dollars per gallon): $1.19.

Month: March 1983; 
Crude oil price (Dollars per gallon): $0.68; 
Gasoline price (Dollars per gallon): $1.15.

Month: April 1983; 
Crude oil price (Dollars per gallon): $0.67; 
Gasoline price (Dollars per gallon): $1.22.

Month: May 1983; 
Crude oil price (Dollars per gallon): $0.68; 
Gasoline price (Dollars per gallon): $1.26.

Month: June 1983; 
Crude oil price (Dollars per gallon): $0.69; 
Gasoline price (Dollars per gallon): $1.28.

Month: July 1983; 
Crude oil price (Dollars per gallon): $0.68; 
Gasoline price (Dollars per gallon): $1.29.

Month: August 1983; 
Crude oil price (Dollars per gallon): $0.69; 
Gasoline price (Dollars per gallon): $1.29.

Month: September 1983; 
Crude oil price (Dollars per gallon): $0.69; 
Gasoline price (Dollars per gallon): $1.27.

Month: October 1983; 
Crude oil price (Dollars per gallon): $0.69; 
Gasoline price (Dollars per gallon): $1.26.

Month: November 1983; 
Crude oil price (Dollars per gallon): $0.69; 
Gasoline price (Dollars per gallon): $1.24.

Month: December 1983; 
Crude oil price (Dollars per gallon): $0.69; 
Gasoline price (Dollars per gallon): $1.23.

Month: January 1984; 
Crude oil price (Dollars per gallon): $0.68; 
Gasoline price (Dollars per gallon): $1.22.

Month: February 1984; 
Crude oil price (Dollars per gallon): $0.69; 
Gasoline price (Dollars per gallon): $1.21.

Month: March 1984; 
Crude oil price (Dollars per gallon): $0.69; 
Gasoline price (Dollars per gallon): $1.21.

Month: April 1984; 
Crude oil price (Dollars per gallon): $0.69; 
Gasoline price (Dollars per gallon): $1.23.

Month: May 1984; 
Crude oil price (Dollars per gallon): $0.69; 
Gasoline price (Dollars per gallon): $1.24.

Month: June 1984; 
Crude oil price (Dollars per gallon): $0.69; 
Gasoline price (Dollars per gallon): $1.23.

Month: July 1984; 
Crude oil price (Dollars per gallon): $0.69; 
Gasoline price (Dollars per gallon): $1.21.

Month: August 1984; 
Crude oil price (Dollars per gallon): $0.68; 
Gasoline price (Dollars per gallon): $1.20.

Month: September 1984; 
Crude oil price (Dollars per gallon): $0.68; 
Gasoline price (Dollars per gallon): $1.20.

Month: October 1984; 
Crude oil price (Dollars per gallon): $0.68; 
Gasoline price (Dollars per gallon): $1.21.

Month: November 1984; 
Crude oil price (Dollars per gallon): $0.67; 
Gasoline price (Dollars per gallon): $1.21.

Month: December 1984; 
Crude oil price (Dollars per gallon): $0.67; 
Gasoline price (Dollars per gallon): $1.19.

Month: January 1985; 
Crude oil price (Dollars per gallon): $0.64; 
Gasoline price (Dollars per gallon): $1.15.

Month: February 1985; 
Crude oil price (Dollars per gallon): $0.63; 
Gasoline price (Dollars per gallon): $1.13.

Month: March 1985; 
Crude oil price (Dollars per gallon): $0.64; 
Gasoline price (Dollars per gallon): $1.16.

Month: April 1985; 
Crude oil price (Dollars per gallon): $0.64; 
Gasoline price (Dollars per gallon): $1.21.

Month: May 1985; 
Crude oil price (Dollars per gallon): $0.65; 
Gasoline price (Dollars per gallon): $1.23.

Month: June 1985; 
Crude oil price (Dollars per gallon): $0.64; 
Gasoline price (Dollars per gallon): $1.24.

Month: July 1985; 
Crude oil price (Dollars per gallon): $0.63; 
Gasoline price (Dollars per gallon): $1.24.

Month: August 1985; 
Crude oil price (Dollars per gallon): $0.63; 
Gasoline price (Dollars per gallon): $1.23.

Month: September 1985; 
Crude oil price (Dollars per gallon): $0.63; 
Gasoline price (Dollars per gallon): $1.22.

Month: October 1985; 
Crude oil price (Dollars per gallon): $0.63; 
Gasoline price (Dollars per gallon): $1.20.

Month: November 1985; 
Crude oil price (Dollars per gallon): $0.64; 
Gasoline price (Dollars per gallon): $1.21.

Month: December 1985; 
Crude oil price (Dollars per gallon): $0.64; 
Gasoline price (Dollars per gallon): $1.21.

Month: January 1986; 
Crude oil price (Dollars per gallon): $0.61; 
Gasoline price (Dollars per gallon): $1.19.

Month: February 1986; 
Crude oil price (Dollars per gallon): $0.47; 
Gasoline price (Dollars per gallon): $1.12.

Month: March 1986; 
Crude oil price (Dollars per gallon): $0.35; 
Gasoline price (Dollars per gallon): $0.98.

Month: April 1986; 
Crude oil price (Dollars per gallon): $0.31; 
Gasoline price (Dollars per gallon): $0.89.

Month: May 1986; 
Crude oil price (Dollars per gallon): $0.31; 
Gasoline price (Dollars per gallon): $0.92.

Month: June 1986; 
Crude oil price (Dollars per gallon): $0.31; 
Gasoline price (Dollars per gallon): $0.96.

Month: July 1986; 
Crude oil price (Dollars per gallon): $0.27; 
Gasoline price (Dollars per gallon): $0.89.

Month: August 1986; 
Crude oil price (Dollars per gallon): $0.28; 
Gasoline price (Dollars per gallon): $0.84.

Month: September 1986; 
Crude oil price (Dollars per gallon): $0.31; 
Gasoline price (Dollars per gallon): $0.86.

Month: October 1986; 
Crude oil price (Dollars per gallon): $0.31; 
Gasoline price (Dollars per gallon): $0.83.

Month: November 1986; 
Crude oil price (Dollars per gallon): $0.32; 
Gasoline price (Dollars per gallon): $0.82.

Month: December 1986; 
Crude oil price (Dollars per gallon): $0.33; 
Gasoline price (Dollars per gallon): $0.82.

Month: January 1987; 
Crude oil price (Dollars per gallon): $0.38; 
Gasoline price (Dollars per gallon): $0.86.

Month: February 1987; 
Crude oil price (Dollars per gallon): $0.40; 
Gasoline price (Dollars per gallon): $0.91.

Month: March 1987; 
Crude oil price (Dollars per gallon): $0.41; 
Gasoline price (Dollars per gallon): $0.91.

Month: April 1987; 
Crude oil price (Dollars per gallon): $0.42; 
Gasoline price (Dollars per gallon): $0.93.

Month: May 1987; 
Crude oil price (Dollars per gallon): $0.43; 
Gasoline price (Dollars per gallon): $0.94.

Month: June 1987; 
Crude oil price (Dollars per gallon): $0.44; 
Gasoline price (Dollars per gallon): $0.96.

Month: July 1987; 
Crude oil price (Dollars per gallon): $0.46; 
Gasoline price (Dollars per gallon): $0.97.

Month: August 1987; 
Crude oil price (Dollars per gallon): $0.46; 
Gasoline price (Dollars per gallon): $1.00.

Month: September 1987; 
Crude oil price (Dollars per gallon): $0.44; 
Gasoline price (Dollars per gallon): $0.99.

Month: October 1987; 
Crude oil price (Dollars per gallon): $0.44; 
Gasoline price (Dollars per gallon): $0.98.

Month: November 1987; 
Crude oil price (Dollars per gallon): $0.43; 
Gasoline price (Dollars per gallon): $0.98.

Month: December 1987; 
Crude oil price (Dollars per gallon): $0.41; 
Gasoline price (Dollars per gallon): $0.96.

Month: January 1988; 
Crude oil price (Dollars per gallon): $0.37; 
Gasoline price (Dollars per gallon): $0.93.

Month: February 1988; 
Crude oil price (Dollars per gallon): $0.37; 
Gasoline price (Dollars per gallon): $0.91.

Month: March 1988; 
Crude oil price (Dollars per gallon): $0.35; 
Gasoline price (Dollars per gallon): $0.90.

Month: April 1988; 
Crude oil price (Dollars per gallon): $0.38; 
Gasoline price (Dollars per gallon): $0.93.

Month: May 1988; 
Crude oil price (Dollars per gallon): $0.39; 
Gasoline price (Dollars per gallon): $0.96.

Month: June 1988; 
Crude oil price (Dollars per gallon): $0.37; 
Gasoline price (Dollars per gallon): $0.96.

Month: July 1988; 
Crude oil price (Dollars per gallon): $0.35; 
Gasoline price (Dollars per gallon): $0.97.

Month: August 1988; 
Crude oil price (Dollars per gallon): $0.34; 
Gasoline price (Dollars per gallon): $0.99.

Month: September 1988; 
Crude oil price (Dollars per gallon): $0.33; 
Gasoline price (Dollars per gallon): $0.97.

Month: October 1988; 
Crude oil price (Dollars per gallon): $0.31; 
Gasoline price (Dollars per gallon): $0.96.

Month: November 1988; 
Crude oil price (Dollars per gallon): $0.30; 
Gasoline price (Dollars per gallon): $0.95.

Month: December 1988; 
Crude oil price (Dollars per gallon): $0.33; 
Gasoline price (Dollars per gallon): $0.93.

Month: January 1989; 
Crude oil price (Dollars per gallon): $0.37; 
Gasoline price (Dollars per gallon): $0.92.

Month: February 1989; 
Crude oil price (Dollars per gallon): $0.39; 
Gasoline price (Dollars per gallon): $0.93.

Month: March 1989; 
Crude oil price (Dollars per gallon): $0.42; 
Gasoline price (Dollars per gallon): $0.94.

Month: April 1989; 
Crude oil price (Dollars per gallon): $0.46; 
Gasoline price (Dollars per gallon): $1.07.

Month: May 1989; 
Crude oil price (Dollars per gallon): $0.45; 
Gasoline price (Dollars per gallon): $1.12.

Month: June 1989; 
Crude oil price (Dollars per gallon): $0.44; 
Gasoline price (Dollars per gallon): $1.11.

Month: July 1989; 
Crude oil price (Dollars per gallon): $0.43; 
Gasoline price (Dollars per gallon): $1.09.

Month: August 1989; 
Crude oil price (Dollars per gallon): $0.41; 
Gasoline price (Dollars per gallon): $1.06.

Month: September 1989; 
Crude oil price (Dollars per gallon): $0.42; 
Gasoline price (Dollars per gallon): $1.03.

Month: October 1989; 
Crude oil price (Dollars per gallon): $0.43; 
Gasoline price (Dollars per gallon): $1.03.

Month: November 1989; 
Crude oil price (Dollars per gallon): $0.44; 
Gasoline price (Dollars per gallon): $1.00.

Month: December 1989; 
Crude oil price (Dollars per gallon): $0.47; 
Gasoline price (Dollars per gallon): $0.98.

Month: January 1990; 
Crude oil price (Dollars per gallon): $0.49; 
Gasoline price (Dollars per gallon): $1.04.

Month: February 1990; 
Crude oil price (Dollars per gallon): $0.48; 
Gasoline price (Dollars per gallon): $1.04.

Month: March 1990; 
Crude oil price (Dollars per gallon): $0.46; 
Gasoline price (Dollars per gallon): $1.02.

Month: April 1990; 
Crude oil price (Dollars per gallon): $0.41; 
Gasoline price (Dollars per gallon): $1.04.

Month: May 1990; 
Crude oil price (Dollars per gallon): $0.39; 
Gasoline price (Dollars per gallon): $1.06.

Month: June 1990; 
Crude oil price (Dollars per gallon): $0.36; 
Gasoline price (Dollars per gallon): $1.09.

Month: July 1990; 
Crude oil price (Dollars per gallon): $0.39; 
Gasoline price (Dollars per gallon): $1.08.

Month: August 1990; 
Crude oil price (Dollars per gallon): $0.56; 
Gasoline price (Dollars per gallon): $1.19.

Month: September 1990; 
Crude oil price (Dollars per gallon): $0.72; 
Gasoline price (Dollars per gallon): $1.29.

Month: October 1990; 
Crude oil price (Dollars per gallon): $0.79; 
Gasoline price (Dollars per gallon): $1.38.

Month: November 1990; 
Crude oil price (Dollars per gallon): $0.73; 
Gasoline price (Dollars per gallon): $1.38.

Month: December 1990; 
Crude oil price (Dollars per gallon): $0.62; 
Gasoline price (Dollars per gallon): $1.35.

Month: January 1991; 
Crude oil price (Dollars per gallon): $0.54; 
Gasoline price (Dollars per gallon): $1.25.

Month: February 1991; 
Crude oil price (Dollars per gallon): $0.45; 
Gasoline price (Dollars per gallon): $1.14.

Month: March 1991; 
Crude oil price (Dollars per gallon): $0.43; 
Gasoline price (Dollars per gallon): $1.08.

Month: April 1991; 
Crude oil price (Dollars per gallon): $0.44; 
Gasoline price (Dollars per gallon): $1.10.

Month: May 1991; 
Crude oil price (Dollars per gallon): $0.45; 
Gasoline price (Dollars per gallon): $1.16.

Month: June 1991; 
Crude oil price (Dollars per gallon): $0.43; 
Gasoline price (Dollars per gallon): $1.16.

Month: July 1991; 
Crude oil price (Dollars per gallon): $0.44; 
Gasoline price (Dollars per gallon): $1.13.

Month: August 1991; 
Crude oil price (Dollars per gallon): $0.45; 
Gasoline price (Dollars per gallon): $1.14.

Month: September 1991; 
Crude oil price (Dollars per gallon): $0.46; 
Gasoline price (Dollars per gallon): $1.14.

Month: October 1991; 
Crude oil price (Dollars per gallon): $0.48; 
Gasoline price (Dollars per gallon): $1.12.

Month: November 1991; 
Crude oil price (Dollars per gallon): $0.47; 
Gasoline price (Dollars per gallon): $1.13.

Month: December 1991; 
Crude oil price (Dollars per gallon): $0.42; 
Gasoline price (Dollars per gallon): $1.12.

Month: January 1992; 
Crude oil price (Dollars per gallon): $0.39; 
Gasoline price (Dollars per gallon): $1.07.

Month: February 1992; 
Crude oil price (Dollars per gallon): $0.39; 
Gasoline price (Dollars per gallon): $1.05.

Month: March 1992; 
Crude oil price (Dollars per gallon): $0.39; 
Gasoline price (Dollars per gallon): $1.06.

Month: April 1992; 
Crude oil price (Dollars per gallon): $0.42; 
Gasoline price (Dollars per gallon): $1.08.

Month: May 1992; 
Crude oil price (Dollars per gallon): $0.45; 
Gasoline price (Dollars per gallon): $1.14.

Month: June 1992; 
Crude oil price (Dollars per gallon): $0.48; 
Gasoline price (Dollars per gallon): $1.18.

Month: July 1992; 
Crude oil price (Dollars per gallon): $0.48; 
Gasoline price (Dollars per gallon): $1.18.

Month: August 1992; 
Crude oil price (Dollars per gallon): $0.47; 
Gasoline price (Dollars per gallon): $1.16.

Month: September 1992; 
Crude oil price (Dollars per gallon): $0.47; 
Gasoline price (Dollars per gallon): $1.16.

Month: October 1992; 
Crude oil price (Dollars per gallon): $0.46; 
Gasoline price (Dollars per gallon): $1.15.

Month: November 1992; 
Crude oil price (Dollars per gallon): $0.44; 
Gasoline price (Dollars per gallon): $1.16.

Month: December 1992; 
Crude oil price (Dollars per gallon): $0.42; 
Gasoline price (Dollars per gallon): $1.14.

Month: January 1993; 
Crude oil price (Dollars per gallon): $0.41; 
Gasoline price (Dollars per gallon): $1.12.

Month: February 1993; 
Crude oil price (Dollars per gallon): $0.42; 
Gasoline price (Dollars per gallon): $1.11.

Month: March 1993; 
Crude oil price (Dollars per gallon): $0.43; 
Gasoline price (Dollars per gallon): $1.10.

Month: April 1993; 
Crude oil price (Dollars per gallon): $0.44; 
Gasoline price (Dollars per gallon): $1.11.

Month: May 1993; 
Crude oil price (Dollars per gallon): $0.43; 
Gasoline price (Dollars per gallon): $1.13.

Month: June 1993; 
Crude oil price (Dollars per gallon): $0.41; 
Gasoline price (Dollars per gallon): $1.13.

Month: July 1993; 
Crude oil price (Dollars per gallon): $0.38; 
Gasoline price (Dollars per gallon): $1.11.

Month: August 1993; 
Crude oil price (Dollars per gallon): $0.38; 
Gasoline price (Dollars per gallon): $1.10.

Month: September 1993; 
Crude oil price (Dollars per gallon): $0.37; 
Gasoline price (Dollars per gallon): $1.09.

Month: October 1993; 
Crude oil price (Dollars per gallon): $0.38; 
Gasoline price (Dollars per gallon): $1.13.

Month: November 1993; 
Crude oil price (Dollars per gallon): $0.35; 
Gasoline price (Dollars per gallon): $1.11.

Month: December 1993; 
Crude oil price (Dollars per gallon): $0.30; 
Gasoline price (Dollars per gallon): $1.07.

Month: January 1994; 
Crude oil price (Dollars per gallon): $0.31; 
Gasoline price (Dollars per gallon): $1.04.

Month: February 1994; 
Crude oil price (Dollars per gallon): $0.31; 
Gasoline price (Dollars per gallon): $1.05.

Month: March 1994; 
Crude oil price (Dollars per gallon): $0.31; 
Gasoline price (Dollars per gallon): $1.05.

Month: April 1994; 
Crude oil price (Dollars per gallon): $0.35; 
Gasoline price (Dollars per gallon): $1.06.

Month: May 1994; 
Crude oil price (Dollars per gallon): $0.38; 
Gasoline price (Dollars per gallon): $1.08.

Month: June 1994; 
Crude oil price (Dollars per gallon): $0.41; 
Gasoline price (Dollars per gallon): $1.11.

Month: July 1994; 
Crude oil price (Dollars per gallon): $0.42; 
Gasoline price (Dollars per gallon): $1.14.

Month: August 1994; 
Crude oil price (Dollars per gallon): $0.40; 
Gasoline price (Dollars per gallon): $1.18.

Month: September 1994; 
Crude oil price (Dollars per gallon): $0.39; 
Gasoline price (Dollars per gallon): $1.18.

Month: October 1994; 
Crude oil price (Dollars per gallon): $0.39; 
Gasoline price (Dollars per gallon): $1.15.

Month: November 1994; 
Crude oil price (Dollars per gallon): $0.39; 
Gasoline price (Dollars per gallon): $1.16.

Month: December 1994; 
Crude oil price (Dollars per gallon): $0.38; 
Gasoline price (Dollars per gallon): $1.14.

Month: January 1995; 
Crude oil price (Dollars per gallon): $0.39; 
Gasoline price (Dollars per gallon): $1.13.

Month: February 1995; 
Crude oil price (Dollars per gallon): $0.41; 
Gasoline price (Dollars per gallon): $1.12.

Month: March 1995; 
Crude oil price (Dollars per gallon): $0.41; 
Gasoline price (Dollars per gallon): $1.12.

Month: April 1995; 
Crude oil price (Dollars per gallon): $0.44; 
Gasoline price (Dollars per gallon): $1.14.

Month: May 1995; 
Crude oil price (Dollars per gallon): $0.44; 
Gasoline price (Dollars per gallon): $1.20.

Month: June 1995; 
Crude oil price (Dollars per gallon): $0.42; 
Gasoline price (Dollars per gallon): $1.23.

Month: July 1995; 
Crude oil price (Dollars per gallon): $0.40; 
Gasoline price (Dollars per gallon): $1.20.

Month: August 1995; 
Crude oil price (Dollars per gallon): $0.40; 
Gasoline price (Dollars per gallon): $1.16.

Month: September 1995; 
Crude oil price (Dollars per gallon): $0.40; 
Gasoline price (Dollars per gallon): $1.15.

Month: October 1995; 
Crude oil price (Dollars per gallon): $0.39; 
Gasoline price (Dollars per gallon): $1.13.

Month: November 1995; 
Crude oil price (Dollars per gallon): $0.40; 
Gasoline price (Dollars per gallon): $1.10.

Month: December 1995; 
Crude oil price (Dollars per gallon): $0.42; 
Gasoline price (Dollars per gallon): $1.10.

Month: January 1996; 
Crude oil price (Dollars per gallon): $0.42; 
Gasoline price (Dollars per gallon): $1.13.

Month: February 1996; 
Crude oil price (Dollars per gallon): $0.43; 
Gasoline price (Dollars per gallon): $1.12.

Month: March 1996; 
Crude oil price (Dollars per gallon): $0.47; 
Gasoline price (Dollars per gallon): $1.16.

Month: April 1996; 
Crude oil price (Dollars per gallon): $0.52; 
Gasoline price (Dollars per gallon): $1.25.

Month: May 1996; 
Crude oil price (Dollars per gallon): $0.49; 
Gasoline price (Dollars per gallon): $1.32.

Month: June 1996; 
Crude oil price (Dollars per gallon): $0.46; 
Gasoline price (Dollars per gallon): $1.30.

Month: July 1996; 
Crude oil price (Dollars per gallon): $0.47; 
Gasoline price (Dollars per gallon): $1.27.

Month: August 1996; 
Crude oil price (Dollars per gallon): $0.49; 
Gasoline price (Dollars per gallon): $1.24.

Month: September 1996; 
Crude oil price (Dollars per gallon): $0.52; 
Gasoline price (Dollars per gallon): $1.23.

Month: October 1996; 
Crude oil price (Dollars per gallon): $0.55; 
Gasoline price (Dollars per gallon): $1.23.

Month: November 1996; 
Crude oil price (Dollars per gallon): $0.54; 
Gasoline price (Dollars per gallon): $1.25.

Month: December 1996; 
Crude oil price (Dollars per gallon): $0.55; 
Gasoline price (Dollars per gallon): $1.26.

Month: January 1997; 
Crude oil price (Dollars per gallon): $0.56; 
Gasoline price (Dollars per gallon): $1.26.

Month: February 1997; 
Crude oil price (Dollars per gallon): $0.52; 
Gasoline price (Dollars per gallon): $1.26.

Month: March 1997; 
Crude oil price (Dollars per gallon): $0.47; 
Gasoline price (Dollars per gallon): $1.24.

Month: April 1997; 
Crude oil price (Dollars per gallon): $0.44; 
Gasoline price (Dollars per gallon): $1.23.

Month: May 1997; 
Crude oil price (Dollars per gallon): $0.45; 
Gasoline price (Dollars per gallon): $1.23.

Month: June 1997; 
Crude oil price (Dollars per gallon): $0.42; 
Gasoline price (Dollars per gallon): $1.23.

Month: July 1997; 
Crude oil price (Dollars per gallon): $0.42; 
Gasoline price (Dollars per gallon): $1.21.

Month: August 1997; 
Crude oil price (Dollars per gallon): $0.43; 
Gasoline price (Dollars per gallon): $1.25.

Month: September 1997; 
Crude oil price (Dollars per gallon): $0.43; 
Gasoline price (Dollars per gallon): $1.28.

Month: October 1997; 
Crude oil price (Dollars per gallon): $0.46; 
Gasoline price (Dollars per gallon): $1.24.

Month: November 1997; 
Crude oil price (Dollars per gallon): $0.44; 
Gasoline price (Dollars per gallon): $1.21.

Month: December 1997; 
Crude oil price (Dollars per gallon): $0.40; 
Gasoline price (Dollars per gallon): $1.18.

Month: January 1998; 
Crude oil price (Dollars per gallon): $0.36; 
Gasoline price (Dollars per gallon): $1.13.

Month: February 1998; 
Crude oil price (Dollars per gallon): $0.33; 
Gasoline price (Dollars per gallon): $1.08.

Month: March 1998; 
Crude oil price (Dollars per gallon): $0.31; 
Gasoline price (Dollars per gallon): $1.04.

Month: April 1998; 
Crude oil price (Dollars per gallon): $0.31; 
Gasoline price (Dollars per gallon): $1.05.

Month: May 1998; 
Crude oil price (Dollars per gallon): $0.31; 
Gasoline price (Dollars per gallon): $1.09.

Month: June 1998; 
Crude oil price (Dollars per gallon): $0.28; 
Gasoline price (Dollars per gallon): $1.09.

Month: July 1998; 
Crude oil price (Dollars per gallon): $0.28; 
Gasoline price (Dollars per gallon): $1.08.

Month: August 1998; 
Crude oil price (Dollars per gallon): $0.28; 
Gasoline price (Dollars per gallon): $1.05.

Month: September 1998; 
Crude oil price (Dollars per gallon): $0.31; 
Gasoline price (Dollars per gallon): $1.03.

Month: October 1998; 
Crude oil price (Dollars per gallon): $0.30; 
Gasoline price (Dollars per gallon): $1.04.

Month: November 1998; 
Crude oil price (Dollars per gallon): $0.28; 
Gasoline price (Dollars per gallon): $1.03.

Month: December 1998; 
Crude oil price (Dollars per gallon): $0.23; 
Gasoline price (Dollars per gallon): $0.99.

Month: January 1999; 
Crude oil price (Dollars per gallon): $0.25; 
Gasoline price (Dollars per gallon): $0.97.

Month: February 1999; 
Crude oil price (Dollars per gallon): $0.25; 
Gasoline price (Dollars per gallon): $0.96.

Month: March 1999; 
Crude oil price (Dollars per gallon): $0.29; 
Gasoline price (Dollars per gallon): $0.99.

Month: April 1999; 
Crude oil price (Dollars per gallon): $0.36; 
Gasoline price (Dollars per gallon): $1.18.

Month: May 1999; 
Crude oil price (Dollars per gallon): $0.38; 
Gasoline price (Dollars per gallon): $1.18.

Month: June 1999; 
Crude oil price (Dollars per gallon): $0.38; 
Gasoline price (Dollars per gallon): $1.15.

Month: July 1999; 
Crude oil price (Dollars per gallon): $0.43; 
Gasoline price (Dollars per gallon): $1.19.

Month: August 1999; 
Crude oil price (Dollars per gallon): $0.47; 
Gasoline price (Dollars per gallon): $1.26.

Month: September 1999; 
Crude oil price (Dollars per gallon): $0.52; 
Gasoline price (Dollars per gallon): $1.28.

Month: October 1999; 
Crude oil price (Dollars per gallon): $0.52; 
Gasoline price (Dollars per gallon): $1.27.

Month: November 1999; 
Crude oil price (Dollars per gallon): $0.55; 
Gasoline price (Dollars per gallon): $1.26.

Month: December 1999; 
Crude oil price (Dollars per gallon): $0.58; 
Gasoline price (Dollars per gallon): $1.30.

Month: January 2000; 
Crude oil price (Dollars per gallon): $0.61; 
Gasoline price (Dollars per gallon): $1.30.

Month: February 2000; 
Crude oil price (Dollars per gallon): $0.66; 
Gasoline price (Dollars per gallon): $1.37.

Month: March 2000; 
Crude oil price (Dollars per gallon): $0.68; 
Gasoline price (Dollars per gallon): $1.54.

Month: April 2000; 
Crude oil price (Dollars per gallon): $0.59; 
Gasoline price (Dollars per gallon): $1.51.

Month: May 2000; 
Crude oil price (Dollars per gallon): $0.63; 
Gasoline price (Dollars per gallon): $1.50.

Month: June 2000; 
Crude oil price (Dollars per gallon): $0.69; 
Gasoline price (Dollars per gallon): $1.62.

Month: July 2000; 
Crude oil price (Dollars per gallon): $0.68; 
Gasoline price (Dollars per gallon): $1.59.

Month: August 2000; 
Crude oil price (Dollars per gallon): $0.69; 
Gasoline price (Dollars per gallon): $1.51.

Month: September 2000; 
Crude oil price (Dollars per gallon): $0.74; 
Gasoline price (Dollars per gallon): $1.58.

Month: October 2000; 
Crude oil price (Dollars per gallon): $0.73; 
Gasoline price (Dollars per gallon): $1.56.

Month: November 2000; 
Crude oil price (Dollars per gallon): $0.74; 
Gasoline price (Dollars per gallon): $1.56.

Month: December 2000; 
Crude oil price (Dollars per gallon): $0.63; 
Gasoline price (Dollars per gallon): $1.49.

Month: January 2001; 
Crude oil price (Dollars per gallon): $0.61; 
Gasoline price (Dollars per gallon): $1.47.

Month: February 2001; 
Crude oil price (Dollars per gallon): $0.62; 
Gasoline price (Dollars per gallon): $1.48.

Month: March 2001; 
Crude oil price (Dollars per gallon): $0.57; 
Gasoline price (Dollars per gallon): $1.45.

Month: April 2001; 
Crude oil price (Dollars per gallon): $0.57; 
Gasoline price (Dollars per gallon): $1.56.

Month: May 2001; 
Crude oil price (Dollars per gallon): $0.60; 
Gasoline price (Dollars per gallon): $1.73.

Month: June 2001; 
Crude oil price (Dollars per gallon): $0.59; 
Gasoline price (Dollars per gallon): $1.64.

Month: July 2001; 
Crude oil price (Dollars per gallon): $0.57; 
Gasoline price (Dollars per gallon): $1.48.

Month: August 2001; 
Crude oil price (Dollars per gallon): $0.58; 
Gasoline price (Dollars per gallon): $1.43.

Month: September 2001; 
Crude oil price (Dollars per gallon): $0.57; 
Gasoline price (Dollars per gallon): $1.53.

Month: October 2001; 
Crude oil price (Dollars per gallon): $0.48; 
Gasoline price (Dollars per gallon): $1.36.

Month: November 2001; 
Crude oil price (Dollars per gallon): $0.41; 
Gasoline price (Dollars per gallon): $1.26.

Month: December 2001; 
Crude oil price (Dollars per gallon): $0.39; 
Gasoline price (Dollars per gallon): $1.13.

Month: January 2002; 
Crude oil price (Dollars per gallon): $0.41; 
Gasoline price (Dollars per gallon): $1.14.

Month: February 2002; 
Crude oil price (Dollars per gallon): $0.44; 
Gasoline price (Dollars per gallon): $1.13.

Month: March 2002; 
Crude oil price (Dollars per gallon): $0.52; 
Gasoline price (Dollars per gallon): $1.24.

Month: April 2002; 
Crude oil price (Dollars per gallon): $0.57; 
Gasoline price (Dollars per gallon): $1.41.

Month: May 2002; 
Crude oil price (Dollars per gallon): $0.60; 
Gasoline price (Dollars per gallon): $1.42.

Month: June 2002; 
Crude oil price (Dollars per gallon): $0.57; 
Gasoline price (Dollars per gallon): $1.40.

Month: July 2002; 
Crude oil price (Dollars per gallon): $0.60; 
Gasoline price (Dollars per gallon): $1.41.

Month: August 2002; 
Crude oil price (Dollars per gallon): $0.62; 
Gasoline price (Dollars per gallon): $1.42.

Month: September 2002; 
Crude oil price (Dollars per gallon): $0.66; 
Gasoline price (Dollars per gallon): $1.42.

Month: October 2002; 
Crude oil price (Dollars per gallon): $0.64; 
Gasoline price (Dollars per gallon): $1.45.

Month: November 2002; 
Crude oil price (Dollars per gallon): $0.59; 
Gasoline price (Dollars per gallon): $1.45.

Month: December 2002; 
Crude oil price (Dollars per gallon): $0.64; 
Gasoline price (Dollars per gallon): $1.39.

Month: January 2003; 
Crude oil price (Dollars per gallon): $0.73; 
Gasoline price (Dollars per gallon): $1.47.

Month: February 2003; 
Crude oil price (Dollars per gallon): $0.79; 
Gasoline price (Dollars per gallon): $1.64.

Month: March 2003; 
Crude oil price (Dollars per gallon): $0.73; 
Gasoline price (Dollars per gallon): $1.75.

Month: April 2003; 
Crude oil price (Dollars per gallon): $0.62; 
Gasoline price (Dollars per gallon): $1.66.

Month: May 2003; 
Crude oil price (Dollars per gallon): $0.61; 
Gasoline price (Dollars per gallon): $1.54.

Month: June 2003; 
Crude oil price (Dollars per gallon): $0.66; 
Gasoline price (Dollars per gallon): $1.51.

Month: July 2003; 
Crude oil price (Dollars per gallon): $0.68; 
Gasoline price (Dollars per gallon): $1.52.

Month: August 2003; 
Crude oil price (Dollars per gallon): $0.69; 
Gasoline price (Dollars per gallon): $1.63.

Month: September 2003; 
Crude oil price (Dollars per gallon): $0.63; 
Gasoline price (Dollars per gallon): $1.73.

Month: October 2003; 
Crude oil price (Dollars per gallon): $0.66; 
Gasoline price (Dollars per gallon): $1.60.

Month: November 2003; 
Crude oil price (Dollars per gallon): $0.67; 
Gasoline price (Dollars per gallon): $1.54.

Month: December 2003; 
Crude oil price (Dollars per gallon): $0.70; 
Gasoline price (Dollars per gallon): $1.49.

Month: January 2004; 
Crude oil price (Dollars per gallon): $0.74; 
Gasoline price (Dollars per gallon): $1.59.

Month: February 2004; 
Crude oil price (Dollars per gallon): $0.76; 
Gasoline price (Dollars per gallon): $1.67.

Month: March 2004; 
Crude oil price (Dollars per gallon): $0.79; 
Gasoline price (Dollars per gallon): $1.77.

Month: April 2004; 
Crude oil price (Dollars per gallon): $0.80; 
Gasoline price (Dollars per gallon): $1.83.

Month: May 2004; 
Crude oil price (Dollars per gallon): $0.86; 
Gasoline price (Dollars per gallon): $2.01.

Month: June 2004; 
Crude oil price (Dollars per gallon): $0.83; 
Gasoline price (Dollars per gallon): $2.04.

Month: July 2004; 
Crude oil price (Dollars per gallon): $0.87; 
Gasoline price (Dollars per gallon): $1.94.

Month: August 2004; 
Crude oil price (Dollars per gallon): $0.96; 
Gasoline price (Dollars per gallon): $1.90.

Month: September 2004; 
Crude oil price (Dollars per gallon): $0.98; 
Gasoline price (Dollars per gallon): $1.89.

Source: GAO analysis of EIA and BLS data.

Note: Crude oil price data are the monthly refiner acquisition cost of 
crude oil composite from EIA. Gasoline price data are the monthly U.S. 
city average price for regular gasoline from BLS.

[End of figure]

Q. What determines the price of crude oil?

A. The price of oil is determined in the world market and depends 
mainly on the balance between world demand and supply. That balance is 
in turn influenced by a number of other factors, as discussed below.

World Oil Demand:

Because oil is purchased and consumed in many countries, including the 
United States, at a price determined in the world market, changes in 
world demand--not just U.S. demand--can influence the price that U.S. 
refiners pay for crude oil and, consequently, the price that U.S. 
consumers pay for gasoline. As Figure 9 shows, since 1983 world oil 
demand grew from about 59 million barrels per day to more than 82 
million barrels per day in 2004, for an average annual increase of 1.9 
percent.

Figure 9: World Oil Demand (1980-2004):

[See PDF for image] 

Source: GAO analysis of EIA data.

[End of figure]

The United States is the world's largest oil consumer, accounting for 
about 25 percent of the world's demand, although it constitutes only 
about 5 percent of the world's population. As Figure 10 shows, the 
United States consumed about 20.5 million barrels of petroleum per day 
in 2004, compared with about 15.2 million barrels per day in 1983, for 
an average annual increase of 1.65 percent.

Figure 10: U.S. Oil Demand (1980-2004):

[See PDF for image] 

Source: GAO analysis of EIA data.

[End of figure]

Recently, rapid growth in oil demand in Asia contributed to a rise in 
crude oil prices to more than $50 per barrel during 2004. Growth in 
demand was particularly strong in China where, according to a recent 
estimate by the National Commission on Energy Policy,[Footnote 6] 
demand grew by 18 percent during the first quarter of 2004, after 
rising 11 percent in 2003.

An important aspect of oil demand is the difficulty of substituting 
other sources of energy for some petroleum products--particularly 
gasoline. In the immediate term at least, gasoline has virtually no 
cost-effective substitutes, and, therefore, increases in its price 
cause only small decreases in consumption.

World Oil Supply:

Unlike oil demand, which encompasses demand from most of the world's 
nations, currently, relatively few countries supply most of the world's 
oil because those are the countries that have oil reserves and 
production. World oil producers can be grouped into two broad 
categories--members of the Organization of Petroleum Exporting 
Countries (OPEC) and non-OPEC countries. OPEC currently has 11 members, 
and many of its major producers are located in the Persian Gulf 
region.[Footnote 7] Key non-OPEC producers include Russia, the United 
States, China, Mexico, Norway, Canada, and the United Kingdom.

As Figure 11 shows, non-OPEC countries, including the United States, 
have typically contributed the majority of the world's oil supply since 
the 1970s. Over the same period, the U.S. share of total world supply 
has decreased from about 23 percent in 1970 to about 10 percent in 
2004. The United States is importing increasingly larger shares of its 
oil use. In 2004, the United States imported about 13 million barrels 
of crude oil and petroleum products per day, representing about 60 
percent of total U.S. consumption. About 56 percent of the imports were 
from non-OPEC countries, of which Canada, Mexico, the United Kingdom, 
and Angola were key suppliers. OPEC supplied the remaining 44 percent 
of U.S. imports, mostly from Saudi Arabia, Venezuela, Nigeria, and 
Iraq. The Persian Gulf region accounted for about 19 percent of total 
U.S. imports of crude oil and petroleum products.[Footnote 8]

Figure 11: World Oil Supply (1970-2004):

[See PDF for image]

Source: GAO analysis of EIA data.

[End of figure]

While non-OPEC countries still contribute the majority of the world's 
oil supply, the share of world oil supplied by OPEC has increased since 
the mid-1980s and accounted for about 40 percent of world supply in 
2004. Overall, OPEC supply makes up the balance of world oil demand 
over non-OPEC supply. In its role as the world's demand-supply 
balancer, OPEC's supply decisions play a critical role in the 
determination of world oil price.

OPEC influences the world oil price mostly through its supply 
decisions. While the group had little or no influence on the world oil 
market during the first 10 years after it was formed in 1960, 
generally, it has been a dominant force in the world oil market since 
the 1970s. Its influence on the world price of crude oil has varied 
depending on the conditions of world supply and demand and its members' 
discipline in adhering to their production quotas. As a group, OPEC 
established a "target" price of $22 to $28 per barrel for its basket of 
crude oil in 2000.[Footnote 9] To achieve this target price, OPEC 
periodically meets and sets an aggregate production level, or quota, 
based on the organization's determination of the demand for its oil. 
(Fig. 12 shows an OPEC meeting.) OPEC then allocates voluntary 
production quotas among its members, primarily based on the size of 
each member's oil reserves. Whether the target price is achieved 
depends on the discipline exercised by member countries in producing 
oil, as well as on the actual demand for oil and non-OPEC countries' 
production levels. If OPEC's estimates of demand are correct and member 
countries adhere to their production quotas, the average world price 
will likely be close to the target price. On the other hand, if some or 
all members exceed their quotas and overproduce, the average world 
price may be substantially below the target price.

Figure 12: OPEC Meeting:

[See PDF for image]

Source: OPEC.

[End of figure]

If the world crude oil price exceeds the target price, OPEC may not 
always increase its production to bring the world price down to its 
target. For example, OPEC members decided in their December 2004 
meeting to cut production as of January 1, 2005, to keep the world 
price from falling, even though the then-current price of around $36 
per barrel for the OPEC basket of crude oil exceeded OPEC's target 
price of $22-28 per barrel.[Footnote 10] Two conditions give OPEC 
countries considerable flexibility to influence world oil prices:

* As a group, OPEC holds the world's largest, lowest-cost reserves of 
crude oil. OPEC countries account for over three-fourths of the world's 
estimated conventional reserves of about 1 trillion barrels (see Fig. 
13). In contrast, the United States has reserves of about 22.7 billion, 
or slightly less than 2 percent of the world's total.

Figure 13: World Oil Reserves, OPEC and Non-OPEC (2003):

[See PDF for image] -graphic text:

Two pie graphs, one with four items and one with ten items.

OPEC (all other): 557.2 billion barrels; 
OPEC (Saudi Arabia only): 261.8 billion barrels; 
Non-OPEC: 196.6 billion barrels; 
Non-OPEC: (United States only): 22.7 billion barrels.

OPEC (all other):

Iraq: 112.5 billion barrels; 
United Arab Emirates: 97.8 billion barrels; 
Kuwait: 96.5 billion barrels; 
Iran: 89.7 billion barrels; 
Venezuela: 77.8 billion barrels; 
Libya: 29.5 billion barrels; 
Nigeria: 24 billion barrels; 
Qatar: 15.2 billion barrels; 
Algeria: 9.2 billion barrels; 
Indonesia: 5 billion barrels.

Source: GAO analysis of EIA data.

Note: This estimate is for conventional crude oil and does not include 
bitumen contained in oil sands in Canada.

[End of figure]

* OPEC is the only entity that can increase crude oil production 
relatively quickly if there is supply shortage because it holds 
virtually all of the world's excess crude oil production capacity. In 
fact, according to EIA data, as of November 2004 Saudi Arabia had 
virtually all of the world's excess crude oil production capacity--up 
to 1 million barrels per day. (See Fig. 14.)

Figure 14: World Excess Crude Oil Production Capacity:

[See PDF for image] -graphic text:

Virtually all of the world's excess crude oil production capacity is 
located in Saudi Arabia, a member of OPEC (1 million barrels a day).

Source: GAO analysis of EIA data.

[End of figure]

Apart from OPEC's supply decisions, OPEC countries sometimes experience 
events that affect their oil supplies and the world price of crude oil. 
For example, the current and past wars in Iraq and strikes in Venezuela 
and Nigeria disrupted oil supplies and temporarily raised the price of 
crude oil.

The futures market typically reflects the impact of world events on the 
world price of crude oil. For example, political instability and 
terrorist acts in countries that supply oil create uncertainties about 
future supplies. Faced with such uncertainties, oil traders at futures 
markets such as the New York Mercantile Exchange may bid up futures 
prices for oil in anticipation of an oil shortage and expected higher 
prices in the future.[Footnote 11] On the other hand, oil traders may 
also bid futures prices down in reaction, for example, to news about a 
new oil discovery that would increase world oil supply and potentially 
lower the world price. In other words, market participants' 
expectations of what may happen to oil supply and demand in the context 
of world events influence their price bids. (See Fig. 15.) Although 
crude oil buyers may not always pay the exact price observed in the 
futures markets, the futures markets play a critical role in providing 
a leading reference price for buyers' and sellers' negotiations in 
crude oil transactions.

Figure 15: World Events, Market Expectations, and the Oil Futures 
Market:

[See PDF for image]

Sources: GAO (analysis); U.S. Army (photo).

[End of figure]

Q. How do changes in gasoline demand relative to supply affect the 
price?

A. As is the case for most goods and services, changes in the demand 
for gasoline relative to changes in supply affect the price that 
consumers pay. In other words, if the demand for gasoline increases 
faster than the ability to supply it, the price of gasoline will most 
likely increase.

In 2004, the United States consumed an average of about 380 million 
gallons (about 9 million barrels) of gasoline per day. This consumption 
is about 56 percent more than the 1970 average per day consumption of 
243 million gallons (about 5.8 million barrels)--an average increase of 
about 1.6 percent per year for the last 35 years. U.S. gasoline 
consumption has increased particularly steeply since the 1990s. (See 
Fig. 16.)

Figure 16: U.S. Gasoline Consumption (1970-2004):

[See PDF for image]

Source: GAO analysis of EIA data.

Notes: One barrel of gasoline equals 42 U.S. gallons.

This graph shows consumption of finished motor gasoline, which, 
beginning in 1993, also includes ethanol blended into motor gasoline.

[End of figure]

The United States is by far the largest consumer of gasoline in the 
world. As of 2001, the most recent year for which EIA data were 
available for international comparisons, the United States accounted 
for 43 percent of the world's total gasoline consumption. (See Fig. 
17.) 

Figure 17: World Gasoline Consumption (2001):

[See PDF for image] -graphic text:

Pie graph with eight items.

United States: 43%; 
Asia and Oceania: 17%; 
Western Europe: 14%; 
Central and South America: 7%; 
Rest of North America[A]: 6%; 
Eastern Europe and the former Soviet Union: 6%; 
Middle East: 4%; 
Africa: 3%.

Source: GAO analysis of EIA data.

Notes: 2001 data are the latest available.

[A] According to EIA, this group consists of Canada, Mexico, Bermuda, 
Greenland, Saint Pierre, and Miquelon, with consumption by Canada and 
Mexico making up the majority.

[End of figure]

Most gasoline consumed in the United States is used for automobile 
transportation, particularly passenger cars, vans, pickups, and sport 
utility vehicles (SUV). Average fuel efficiency for passenger cars, as 
measured in miles per gallon of gasoline consumed, increased from about 
13.5 miles per gallon in 1973 (the earliest year for which data were 
available) to about 22 miles per gallon in 2003. Average fuel 
efficiency for vans, pickups, and SUVs also increased during that 
period, from about 10.5 miles per gallon to 18 miles per gallon. 
However, since 1992, fuel efficiency performance for both vehicle 
categories has remained almost flat. (See Fig. 18.)

Figure 18: Fuel Efficiency of Automobiles in the United States (1973- 
2003):

[See PDF for image] -graphic text:

Line graph with two lines with 31 items each.

Year: 1973; 
Passenger cars (miles per gallon): 13.4; 
Vans, pickups and SUVs (miles per gallon): 10.5.

Year: 1974; 
Passenger cars (miles per gallon): 13.6; 
Vans, pickups and SUVs (miles per gallon): 11.

Year: 1975; 
Passenger cars (miles per gallon): 14; 
Vans, pickups and SUVs (miles per gallon): 10.5.

Year: 1976; 
Passenger cars (miles per gallon): 13.8; 
Vans, pickups and SUVs (miles per gallon): 10.8.

Year: 1977; 
Passenger cars (miles per gallon): 14.1; 
Vans, pickups and SUVs (miles per gallon): 11.2.

Year: 1978; 
Passenger cars (miles per gallon): 14.3; 
Vans, pickups and SUVs (miles per gallon): 11.6.

Year: 1979; 
Passenger cars (miles per gallon): 14.6; 
Vans, pickups and SUVs (miles per gallon): 11.9.

Year: 1980; 
Passenger cars (miles per gallon): 16; 
Vans, pickups and SUVs (miles per gallon): 12.2.

Year: 1981; 
Passenger cars (miles per gallon): 16.5; 
Vans, pickups and SUVs (miles per gallon): 12.5.

Year: 1982; 
Passenger cars (miles per gallon): 16.9; 
Vans, pickups and SUVs (miles per gallon): 13.5.

Year: 1983; 
Passenger cars (miles per gallon): 17.1; 
Vans, pickups and SUVs (miles per gallon): 13.7.

Year: 1984; 
Passenger cars (miles per gallon): 17.4; 
Vans, pickups and SUVs (miles per gallon): 14.

Year: 1985; 
Passenger cars (miles per gallon): 17.5; 
Vans, pickups and SUVs (miles per gallon): 14.3.

Year: 1986; 
Passenger cars (miles per gallon): 17.4; 
Vans, pickups and SUVs (miles per gallon): 14.6.

Year: 1987; 
Passenger cars (miles per gallon): 18; 
Vans, pickups and SUVs (miles per gallon): 14.9.

Year: 1988; 
Passenger cars (miles per gallon): 18.8; 
Vans, pickups and SUVs (miles per gallon): 15.4.

Year: 1989; 
Passenger cars (miles per gallon): 19; 
Vans, pickups and SUVs (miles per gallon): 16.1.

Year: 1990; 
Passenger cars (miles per gallon): 20.2; 
Vans, pickups and SUVs (miles per gallon): 16.1.

Year: 1991; 
Passenger cars (miles per gallon): 21.1; 
Vans, pickups and SUVs (miles per gallon): 17.

Year: 1992; 
Passenger cars (miles per gallon): 21; 
Vans, pickups and SUVs (miles per gallon): 17.3.

Year: 1993; 
Passenger cars (miles per gallon): 20.5; 
Vans, pickups and SUVs (miles per gallon): 17.4.

Year: 1994; 
Passenger cars (miles per gallon): 20.7; 
Vans, pickups and SUVs (miles per gallon): 17.3.

Year: 1995; 
Passenger cars (miles per gallon): 21.1; 
Vans, pickups and SUVs (miles per gallon): 17.3.

Year: 1996; 
Passenger cars (miles per gallon): 21.2; 
Vans, pickups and SUVs (miles per gallon): 17.2.

Year: 1997; 
Passenger cars (miles per gallon): 21.5; 
Vans, pickups and SUVs (miles per gallon): 17.2.

Year: 1998; 
Passenger cars (miles per gallon): 21.6; 
Vans, pickups and SUVs (miles per gallon): 17.2.

Year: 1999; 
Passenger cars (miles per gallon): 21.4; 
Vans, pickups and SUVs (miles per gallon): 17.

Year: 2000; 
Passenger cars (miles per gallon): 21.9; 
Vans, pickups and SUVs (miles per gallon): 17.4.

Year: 2001; 
Passenger cars (miles per gallon): 22.1; 
Vans, pickups and SUVs (miles per gallon): 17.6.

Year: 2002; 
Passenger cars (miles per gallon): 22; 
Vans, pickups and SUVs (miles per gallon): 17.5.

Year: 2003; 
Passenger cars (miles per gallon): 22.3; 
Vans, pickups and SUVs (miles per gallon): 17.7.

Source: GAO analysis of EIA data.

[End of figure]

As Figure 19 shows, gasoline consumption by passenger cars has been 
relatively stable since 1980 compared with consumption by vans, pickups 
and SUVs, which has increased more steeply as these larger, less fuel- 
e