There are various factors that affect retail gasoline prices. Rising costs in crude oil in the world market has quite an effect on the eventual price of gasoline. Crude oil price is usually determined by worldwide supply and demand.
An electric car is one type of an alternative vehicle. It makes use of electricity as its primary power source. Instead of an internal combustion engine, the electric car, also commonly called as an EV or electric vehicle, has an electric motor to make the vehicle move. It is an alternative fuel vehicle that does not use refined fossil oil for fuel.
Electric cars get electricity for power by means of electric battery packs built on board. One of the advantages of using electric vehicles or EV’s is that they are environmentally friendly. Unlike fossil fuel that emits a number of pollutants into the air when being used, the use of electricity for power does not do so, except that the power plants that may produce them do. But with using electric cars, the emission of harmful pollutants may be reduced substantially. Less cars using fossils fuel and gasoline would help make this possible. And someday, when more electric power is sourced from nuclear, solar, wind and hydro-electric power plants, pollutant emissions will even be reduced more.
Refining costs also can affect gasoline pricing. Different countries as well as areas have certain regulations when it comes to the gasoline products that they acquire fro the retailers. Some places require less polluting gasoline than others. Some have higher standards than others. This usually means that the refining process for gasoline may be different from those following less stringent standards. Although this may prove to be helpful in some sense, added refining requirements can also be considered as additional costs for gasoline. The costs are eventually passed on to the consumers in the guise of higher gasoline prices.
Aside from the price of crude oil and refining costs, distribution costs also account for a great deal of the retail price of gasoline in the market. Aside from shipping and overseas transport costs, distributing gasoline to the different gasoline stations in the area may also account for the retail price of the gasoline. Some areas may have some difficulties obtaining their gasoline supply due to distance as well as accessibility while some have it easy because of being in close proximity to major gas depots. It is through this that gas prices may also differ from one area to another. Distribution also affects the gasoline retail price.
In an area having just a few gas retail stations available, the gasoline prices would tend to be higher. The reason for this is that the demand would still be a bit greater with only a few retail stations able to provide the supply. In some cases, the consumer may be made to choose- whether to buy cheaper gasoline to a retail station location many miles away or buy gas from a nearer station offering more expensive gasoline prices.And will this rising casoline prices effect cars quotes in the future?