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.
Read our complete article below about this topic.
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.
Estimate how a change in the price of crude oil could affect gasoline prices and your monthly fuel spending.
Compare a current crude oil price with a possible future price. You can also adjust how much of the crude oil change reaches retail gasoline prices.
Results update automatically as you change the inputs.
A $10.00 increase in crude oil prices equals approximately 23.8 cents of additional crude oil cost per gallon before applying the selected 70% pass-through assumption. That produces an estimated gasoline-price increase of about 16.7 cents per gallon.
Crude price change ÷ 42 gallons per barrel × pass-through percentage = estimated gasoline price change per gallon.
This calculator estimates how changes in crude oil prices may affect gasoline prices. Want to see what drivers are actually paying around the country? Use our State Fuel Price Lookup to compare average gasoline and diesel prices in every U.S. state and see how your state compares with the national average.
Fuel prices don't change by chance. They are influenced by crude oil markets, refining capacity, transportation costs, fuel taxes, seasonal demand, weather events, and global economic conditions. If you want to understand why prices differ from state to state and how to interpret the results of this tool, our comprehensive guide is an excellent next step.
You'll also discover how one barrel of crude oil becomes gasoline and diesel, why diesel often costs more than gasoline, the factors that influence prices at the pump, and test your knowledge with an interactive quiz.
Knowing your state's average gasoline and diesel prices is only the beginning. Explore additional fuel-price resources, use our collection of financial calculators, or connect transportation costs with your household budget through the RetireCoast Millennial Financial Lab.
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