Idea of the Day: 5 Myths that Big Oil Wants You to Believe

March 1, 2013

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This is the third straight winter of our discontent, due in large part to high gasoline prices. The Energy Information Administration reports that as of February 25, “The average U.S. retail price for regular motor gasoline is up about 45 cents per gallon since the start of 2013.”

As was the case in previous years, higher prices at the pump are primarily—but not entirely—due to high global oil prices because the price of oil comprises nearly three-quarters of the price of gasoline. The Energy Information Administration reports that in 2013, “the price of Brent crude oil—the waterborne light sweet crude grade that drives the wholesale price of gasoline sold in most U.S. regions—rose about $6 per barrel, or about 15 cents per gallon.” The agency determined that, “The rise in gasoline prices is partly due to higher crude oil prices. … Year-over-year global product demand is up, and further rises are expected.”

For more on this topic, please see:

• 5 Oily Myths About Gasoline Prices by Daniel J. Weiss