Gasoline Prices And Commodity Markets
The Washington Post today makes a valiant attempt to explain the recent steep spike in the cost of gas at the pump. But somehow, it doesn't seem quite complete.
The piece mentions the commodity markets but doesn't clearly explain their impact. As of this writing, the price of unleaded gas on the NY Mercantile Exchange is $2.2148 for May '06. Assuming that this is a per gallon price, which is a pure assumption on my part, how does this set the base price we will pay at the pump in May? What additional costs are added to the street price, aside from taxes which vary from locale to locale, that result in a retail cost that is now hovering at about $3.00 per gallon?
If anyone can enlighten me or provide a helpful link I would greatly appreciate it.
The piece mentions the commodity markets but doesn't clearly explain their impact. As of this writing, the price of unleaded gas on the NY Mercantile Exchange is $2.2148 for May '06. Assuming that this is a per gallon price, which is a pure assumption on my part, how does this set the base price we will pay at the pump in May? What additional costs are added to the street price, aside from taxes which vary from locale to locale, that result in a retail cost that is now hovering at about $3.00 per gallon?
If anyone can enlighten me or provide a helpful link I would greatly appreciate it.
posted by Joe Hogan at
10:21 AM
