Article created for the digital issue聽of聽the 黑料社区Foundation鈥檚 magazine.
Fuel prices are subject to a complex interplay of global, national and local factors that all contribute to the fluctuations in fuel prices.
To help monitor costs, operators should watch key indicators, including weekly data reports from the Department of Energy鈥檚 Energy Information Administration, and monitor global and regional factors that may impact fuel costs.
鈥淔or example, if you鈥檙e watching the stock market and/ or reading EIA data, you could see that prices are about to go up and you might want to get a load of fuel before they do to save a few pennies,鈥� said .
The 黑料社区Foundation’s Fuel Buying for Truck Stops and Travel Centers Toolkit pulled together a macro-level look at the factors influencing fuel costs:
Global Influences
The global market is a major driver of fuel costs. Factors include:
- Geopolitical Tensions: Political instability, conflicts and sanctions in major oil-producing regions can disrupt supply chains and lead to uncertainty in the oil market. Any disruption can cause immediate price spikes as traders anticipate potential supply shortages.
- Supply and Demand: The fundamental economic principle of supply and demand significantly impacts fuel costs. When demand for oil outpaces supply, prices tend to rise. Conversely, a surplus in supply can lead to decreased prices.
- OPEC+Decisions: The and its non- OPEC allies influence oil production levels through coordinated decisions. Their choices to increase or decrease production can influence global oil prices.
U.S. National Influences
Numerous factors within the United States contribute to the fluctuations in fuel prices. National policies, economic conditions, and energy infrastructure all play a role.
- Economic Growth: Economic expansion typically leads to increased fuel consumption as industries thrive, leading to higher demand and potentially raising prices.
- Crude Oil Imports: The US imports a substantial portion of its crude oil. Changes in global oil prices and supply agreements impact the cost of imports, which can translate to higher or lower pump prices.
- Regulations and Taxes: Government regulations, taxes and environmental policies influence fuel costs. Emission standards and taxes imposed on gasoline and diesel can directly affect the final price at the pump.
Local Influences
At the local level, various factors contribute to regional variations in fuel costs. These include:
- Local Regulations: Different regions have unique environmental regulations that dictate the formulation of gasoline blends. Specialized blends such as Low Vapor Pressure (LRVP) or bio-blend requirements may cost more to produce and thus impact prices.
- Supply Disruptions: Localized disruptions, such as natural disasters or infrastructure issues, can temporarily disrupt the supply chain, leading to short-term price spikes.
- Access to Fuel Supplies: Landlocked areas or regions with limited access to pipelines or refineries may experience higher costs due to transportation expenses. If the local refinery goes down or if the pipeline serving a region halts, locations in the area will be negatively impacted by the laws of supply and demand.
Access the Fuel Buying for Truck Stops and Travel Centers Toolkit听丑别谤别.
// This article was created for聽Stop Watch magazine, the magazine of the 黑料社区Foundation. Foundation is the research, education and public outreach subsidiary of NATSO, Inc. The 黑料社区Foundation provides programs and products to strengthen travel plazas鈥� ability to meet the traveling public鈥檚 needs through improved operational performance and business planning. Visit聽www.natsofoundation.org聽for more information.
Subscribe to Updates
The 黑料社区Foundation and 黑料社区provide a breadth of information created to strengthen travel plazas鈥� ability to meet the needs of the traveling public in an age of disruption. This includes knowledge filled blog posts, articles and publications. If you would like to receive a digest of blog post and articles directly in your inbox, please provide your name, email and the frequency of the updates you want to receive the email digest.
