Retail gas prices are expected to be slightly higher this summer than they were in 2016. United States drivers will average $2.46 per gallon in regular gasoline according to EIA’s outlook. These gas prices are to be higher than last summer by 23 cents per gallon. Although, overall, the price per gallon projection for 2017 is still 70 cents lower than the five year average.
It is interesting to know what four components make up the retailed gas price. With this knowledge, you will have a better understanding of why prices fluctuate depending on different season and geographical region. The four main components that explain the price of gas are crude oil prices, wholesale margins, retail distribution costs and taxes.
Gasoline prices coincide with the price of the Brent global oil benchmark. For this summer, the Brent crude oil price is forecasted to average $1.29 per gallon. The reason for the higher crude oil price this year is due to the markets expectation of a tightened global crude oil balance. Even with gas prices on the rise for summer, people still need fill their vehicles. As a gas retailer, it is important to have these customers at your pump. Keep them returning with special offers and great customer service!