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The relationship between crude oil and gasoline prices

Ali Akarca () and Dimitri Andrianacos

International Advances in Economic Research, 1998, vol. 4, issue 3, 282-288

Abstract: This study investigates the dynamic relationship between crude oil and retail gasoline prices during the last 21 years and determines that, in February 1986, the relationship had drastically changed. Since that date, the results show that gasoline prices include higher profit margins, respond substantially less to changes in crude oil prices(but still within one month), and are more volatile. Also discussed are the developments in crude oil and gasoline markets that have led to the above changes. Copyright International Atlantic Economic Society 1998

Date: 1998
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DOI: 10.1007/BF02294897

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Handle: RePEc:kap:iaecre:v:4:y:1998:i:3:p:282-288:10.1007/bf02294897