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The components for the gasoline and diesel fuel pumps
are calculated in the following manner in cents per gallon and then converted
into a percentage:
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Crude Oil - the monthly average of the composite refiner acquisition cost,
which is the average price of crude oil purchased by refiners. |
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Refining Costs & Profits - the difference between the monthly average of
the spot price of gasoline or diesel fuel (used as a proxy for the value of gasoline or diesel fuel as it
exits the refinery) and the average price of crude oil purchased by refiners
(the crude oil component). |
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Distribution & Marketing Costs & Profits - the difference between the
average retail price of gasoline or diesel fuel as computed from EIA's weekly survey and the
sum of the other 3 components. |
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Taxes - a monthly national average of federal and state taxes applied to
gasoline or diesel fuel. |
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It should be noted that the second and third components can vary widely, depending on
the time when the components are being calculated. Since there is typically a
lag between when the spot price changes to when the retail price changes, the refining costs & profits component and the
distribution & marketing costs & profits component can vary from month
to month. For example, as prices increase on the spot market, often the
retail prices take time to adjust. Thus, at this point in the cycle, the
refining costs & profits component (assuming no corresponding increase in
crude oil prices) would be relatively large while the distribution &
marketing costs & profits component would be relatively small. However,
later on, as retail prices "catch-up" with the previous spot price
increases, the distribution & marketing costs & profits component would
increase while the refining costs & profits component would decrease. |