The Volatility In Fuel Prices

The Volatility In Fuel Prices

The price of fuel this year had been constantly changing. Sometimes it goes very high and sometimes low. During the start of the year, the rate per gallon in the United States was at $2.58. After 3 months it dropped down to 31% or $1.77 a gallon on April 2020. Then again went up 24% on July of the same year. This holidays the average price of gas by the gallon is at $2.22.

 

 

 

 

 

There are many factors that can cause the up and down in fuel prices. For this 2020 its fluctuating price was caused mostly because of the nation’s response to the pandemic. This was mostly the reason of its rapid change, and it is being unpredictably volatile. High Fuel prices are directly affected by the increase in crude oil prices. Crude oil accounts for at least 56% of the rate of regular gasoline. The remaining percentage will cost for distribution and some operational expense such as marketing, refining, and taxes. Oil prices directly affect the price of regular gas.