Chart: US gasoline prices linked tightly to crude oil

Drivers in the US enjoy one of the lowest gasoline prices among the industrialized countries. This is so because the level of taxation is relatively low compared to, for example, most European countries. There are, however, significant differences between regions, again due to local taxes and surcharges. For instance, a liter of gasoline in California is sold for an average of 0.85 US Dollars while in Texas gas stations would charge only 0.58 US Dollars, according to data from the U.S. Energy Information Administration for the last week of March 2015.

The American retail market for transportation fuels is liberalized, with plenty of different gas stations chains and brands. In general, prices at the pump quickly follow the dynamics in the price of crude oil. In the chart below, we show how changes in West Texas Intermediate (WTI) – the benchmark used throughout the US – affect gasoline rates at the pump. The value of WTI usually differs from Brent, the international benchmark, as oil prices in the US depend on domestic production, mostly from shale formations in recent years, and the ban on crude oil exports.

To see the latest updates please refer to the gasoline prices in the US

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