Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, commented to the Ura.ru internet portal on the rise in prices for petroleum products in the United States, and whether the US economy benefits from rising oil prices.
Pricing in the oil products market varies from country to country, primarily due to the difference in fiscal terms, Alexey Belogoryev explained.
The rise in oil prices was quickly recouped in the cost of gasoline at American gas stations, since in the United States, companies that own gas stations set in advance the price at which they plan to buy the next batch. Because of this, a liter of gasoline rises in price at lightning speed, but its cost decreases with the reverse adjustment of oil prices slowly — companies selling fuel at retail are afraid of a new leap in order not to get into a situation where they have to sell cheaper wholesale, Belogoryev comments."In Russia, the price of crude oil in a liter of gasoline that we buy at gas stations is about 15%, and most of it is taxes and excise taxes. In the European Union, oil accounts for 30% of the final fuel price, in China it is about 40-45%. In the United States, this figure is 50-60%, so prices at gas stations always react most quickly and painfully to any increase in oil prices," the expert noted.
The statement by US President Donald Trump that expensive oil is beneficial to the country because it is an exporter and earns money from it is partly true, the source said. However, the benefits and losses are unevenly distributed between states and industries.
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