30/08/2024 | Press release | Distributed by Public on 30/08/2024 21:43
It is a common misconception that refiners set the price of gasoline. But, in fact, refiners are price takers-not price makers.
Refiners sit in the middle of a very long and complex fuel supply chain. They buy feedstock-primarily crude oil-at a price determined by a global market, and turn those feedstocks into other products, like gasoline and diesel, that are then sold at market price.
After products are sold and finished, they are then distributed to roughly 150,000 retailers around the country. Those retailers, largely, set the final price at the pump. The retail market is highly competitive and there are myriad factors that go into setting final prices, as our friends at the National Association of Convenience Stores point out here.
For a full breakdown of some of the fluctuating costs in recent years, check out this blog on how the energy market impacts fuel and petrochemical prices.
The American Fuel & Petrochemical Manufacturers (AFPM) is the leading trade association representing the makers of the fuels that keep us moving, the petrochemicals that are the essential building blocks for modern life, and the midstream companies that get our feedstocks and products where they need to go. We make the products that make life better, safer and more sustainable - we make progress.