Every time crude oil prices rise or fall, news organizations report the change and speculate about what it may mean for consumers. Yet many people are surprised to learn that a one-dollar change in crude oil prices does not translate into a one-dollar change in the price of gasoline.
This calculator helps you estimate how changes in crude oil prices may affect the price of gasoline and diesel. Simply enter the current crude oil price and a new price, or create your own “what-if” scenario, and the calculator will estimate the impact on the raw crude oil portion of fuel costs.
The calculation is based on the fact that a standard barrel of crude oil contains 42 gallons. As a result, a one-dollar change in crude oil prices typically changes the raw crude oil cost of gasoline by approximately 2.4 cents per gallon before refining, transportation, taxes, distribution costs, and retail margins are added.
For example, if crude oil falls from $90 per barrel to $89 per barrel, the raw crude oil component of gasoline costs would decline by approximately 2.4 cents per gallon. If crude oil rises by $10 per barrel, the raw crude oil component would increase by approximately 24 cents per gallon.
Keep in mind that actual gasoline prices may not change immediately. Refineries, distributors, and service stations may still be selling fuel purchased at earlier prices. In addition, refining costs, taxes, environmental regulations, local competition, transportation costs, and market conditions all influence the final price of gasoline and diesel that consumers pay at the pump.
Use this calculator as a planning and educational tool to better understand one of the most important factors affecting fuel prices.
Crude Oil to Gasoline Price Impact Calculator
Estimate how changes in crude oil prices may affect the price of gasoline. Remember that actual gasoline prices also include refining, transportation, marketing, taxes, and retail margins.
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