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A Primer on Gasoline Prices : |
Gasoline, one of the main products refined from crude oil, accounts for just about 17 percent of the energy consumed in the United States. The primary use for gasoline is in automobiles and light trucks. Gasoline also fuels boats, recreational vehicles, and various farm and other equipment. While gasoline is produced year-round, extra volumes are made in time for the summer driving season. Gasoline is delivered from oil refineries mainly through pipelines to a massive distribution chain serving 168,987 retail gasoline stations throughout the United States. |
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| There are three main grades of gasoline: regular, mid-grade, and premium. Each grade has a different octane level. Price levels vary by grade, but the price differential between grades is generally constant. |
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| Gasoline Usage and Pricing: |
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The United States used an average of 385 million US liquid gallons (1.46 gigalitres) of gasoline each day in 2005, amounting to 44% of the total U.S. consumption of petroleum products. This corresponds to 18.5 Exajoules per year, or 0.6 Terawatts. Western countries have among the highest usage rates per person.
Some regions, e.g. in Europe and Japan, impose heavy fuel taxes on fuels such as gasoline. Because a greater proportion of the price of gasoline in the United States is due to the cost of oil, rather than taxes, the price of the retail product is subject to greater fluctuations (vs. outside the U.S.) when calculated as a percentage of cost-per-unit, but is actually less variable in absolute terms. |
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