As an expert in the field of energy economics, I can provide a detailed analysis of the factors that influenced the price of gasoline in 2017. The cost of a gallon of gas is determined by a complex interplay of various factors, including crude oil prices, refining costs, taxes, distribution costs, and regional market conditions.

Firstly, crude oil prices are the primary driver of gasoline prices. In 2017, the global crude oil market experienced a period of relative stability after the fluctuations of the previous years. The Organization of the Petroleum Exporting Countries (OPEC) and other major oil-producing countries agreed to cut production to reduce the global supply glut. This agreement helped to support oil prices, but they did not skyrocket to the levels seen in the past.

Secondly, refining costs also play a significant role. Refineries convert crude oil into gasoline and other petroleum products. The cost of refining can vary depending on the type of crude oil being processed and the efficiency of the refinery. In 2017, improvements in refining technology and capacity helped to keep refining costs in check.

Taxes are another component of the price at the pump. Gasoline taxes vary by state and can significantly affect the price consumers pay. Some states have higher taxes on gasoline, which results in a higher price per gallon.

Distribution costs, which include the transportation of gasoline from refineries to gas stations, also contribute to the price. In 2017, factors such as fuel costs for transportation and storage costs could have influenced these distribution expenses.

Lastly, regional market conditions can cause variations in gasoline prices. Supply and demand dynamics, local taxes, and competition among gas stations can all lead to differences in prices from one region to another.

According to GasBuddy, a leading source for gasoline price information, they forecasted a 2017 U.S. average price of $2.49 a gallon for gasoline. This would have been an increase from the 2016 average of $2.13, but still lower than the averages seen in the years prior to 2016, such as $2.40 in 2015 and $3.34 in 2014. The forecast indicated a slight uptick in prices, which could be attributed to the factors mentioned above.

It's important to note that while the national average provides a general idea of the price trend, individual prices at the pump can vary widely. Consumers in different parts of the country would have experienced different prices based on their local market conditions.

In conclusion, the price of a gallon of gas in 2017 was influenced by a multitude of factors, and the average price was forecasted to be $2.49. This price reflects a complex interaction of global crude oil markets, refining processes, taxes, distribution logistics, and regional market dynamics.

read more >>

GasBuddy. GasBuddy forecasts a 2017 U.S. average price of $2.49 a gallon for gasoline. That would snap a yearly trend that has seen prices fall annually since prices averaged $3.60 in 2012. In 2016, prices averaged $2.13, down from $2.40 in 2015 and $3.34 in 2014.Jan 4, 2017read more >>