Category: gasoline

Charted: Four Decades of U.S. Inflation


This post is by Carmen Ang from Visual Capitalist


Four Decades of U.S. Inflation

Charted: Four Decades of U.S. Inflation

In May 2022, the annual rate of U.S. inflation grew to 8.6%—the highest it’s been in four decades, according to the Bureau of Labor Statistics.

What’s driving this surge, and what products are seeing the most significant price jumps?

This visualization by Pablo Alvarez shows U.S. inflation levels since 1982 and highlights a few product categories that have seen the biggest year-over-year increases.

The Category Breakdown

Perhaps unsurprisingly, energy sources have seen the biggest year-over-year climb. Gasoline has seen one of the biggest spikes, up 48.7% since May 2021.

Item% yearly change (May 2022)
Gasoline (all types)48.7%
Energy34.6%
Natural Gas30.2%
Electricity12.0%
Food10.1%
All items8.6%
Apparel5.0%

Across the U.S., the average price of gas sat at $4.807 per gallon as of July 4, and experts predict this figure could grow to $6 per gallon by the end of the summer.

While fuel prices were on the upswing prior to the Russia-Ukraine conflict, due to loosening COVID-19 restrictions and increased demand for travel, the conflict sent oil prices skyrocketing. This is because many countries placed sanctions on Russian oil, which put a squeeze on global supply.

Food has also seen a massive cost spike, up 10.1% since May 2021. This is largely due to supply-chain issues, increased transportation costs, and fertilizer shortages.

The Spending Spree Continues

Despite rising prices, many consumers have been continuing to spend. In May 2022, personal consumption expenditures (which account for (Read more...)

Explainer: What Drives Gasoline Prices?


This post is by Carmen Ang from Visual Capitalist


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What drives gasoline prices infographic that explains the four factors going into the cost at the pump

What Drives Gasoline Prices?

This was originally posted on Elements. Sign up to the free mailing list to get beautiful visualizations on natural resource megatrends in your email every week.

Across the United States, the cost of gas has been a hot topic of conversation lately, as prices reach record-breaking highs.

The national average now sits at $5.00 per gallon, and by the end of summer, this figure could grow to $6 per gallon, according to estimates by JPMorgan.

But before we can have an understanding of what’s happening at the pump, it’s important to first know what key factors influence gasoline prices.

This graphic, using data from the U.S. Energy Information Administration (EIA), outlines the main components that influence gasoline prices, providing each factor’s proportional impact on price.

The Four Main Factors

According to the EIA, there are four main factors that influence the price of gas:

  • Crude oil prices (54%)
  • Refining costs (14%)
  • Taxes (16%)
  • Distribution, and marketing costs (16%)

More than half the cost of filling your tank is influenced by the price of crude oil. Meanwhile, the rest of the price at the pump is split fairly equally between refining costs, marketing and distribution, and taxes.

Let’s look at each factor in more depth.

Crude Oil Prices

The most influential factor is the cost of crude oil, which is largely dictated by international supply and demand.

Despite being the world’s (Read more...)

Biofuel Mandates: Out of Sync With The New Transportation Landscape



The following content is sponsored by AFPM

Biofuel Mandates: Out of Sync With The New Transportation Landscape

Biofuel Mandates: Out of Sync With Transportation Landscape

In 2005, the Renewable Fuel Standard (RFS) was enacted so that transportation fuel like diesel and gasoline will contain renewable fuel. The motives behind this were to reduce America’s dependence on foreign oil markets, improve climate initiatives, and bring gas prices down.

However, over time it became evident that the forecasts that the RFS was built on were largely incorrect. This infographic from AFPM dives into the world of biofuel and breaks down why the current policies are out of sync with modern transportation.

But before we begin, let’s first explore the basics of biofuels.

What Is Biofuel?

Biofuel is transportation fuel derived from biological resources, like plants. This is in contrast to fossil fuels like gasoline and diesel, which are made up of nonrenewable petroleum. In addition, biofuels break down into conventional biofuels and advanced ones.

Conventional biofuels are any fuel derived from starch feedstocks like corn and grain. In fact, ethanol derived from corn represents one of the largest components of the biofuel market in America. For instance 97% of gasoline in the U.S. contains ethanol and 94% of that ethanol comes from starch in corn grains.

Advanced biofuels are second generation biofuels. They’re considered more complex, and come from non-food biomass like plant materials and animal waste. More advanced technologies are required to extract fuel from these resources. However, the impact on the food chain is minimized.

Here are two examples of (Read more...)

What’s Made from a Barrel of Oil?


This post is by Niccolo Conte from Visual Capitalist


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Infographic: What's Made from a Barrel of Oil?

What Products Are Made from a Barrel of Oil?

This was originally posted on Elements. Sign up to the free mailing list to get beautiful visualizations on natural resource megatrends in your email every week.

From the gasoline in our cars to the plastic in countless everyday items, crude oil is an essential raw material that shows up everywhere in our lives.

With around 18 million barrels of crude oil consumed every day just in America, this commodity powers transport, utilities, and is a vital ingredient in many of the things we use on a daily basis.

This graphic visualizes how much crude oil is refined into various finished products, using a barrel of oil to represent the proportional breakdown.

Barrel of Oil to Functional Fuel and More

Crude oil is primarily refined into various types of fuels to power transport and vital utilities. More than 85% of crude oil is refined into fuels like gasoline, diesel, and hydrocarbon gas liquids (HGLs) like propane and butane.

Along with being fuels for transportation, heating, and cooking, HGLs are used as feedstock for the production of chemicals, plastics, and synthetic rubber, and as additives for motor gasoline production.

Refined Crude Oil ProductShare of Crude Oil Refined
Gasoline42.7%
Diesel27.4%
Jet fuel5.8%
Heavy fuel5.0%
Asphalt4.0%
Light fuel3.0%
Hydrocarbon gas liquids2.0%
Other10.1%

Source: Canadian Association of Petroleum Producers

Crude oil not only powers our (Read more...)