Download or read book Price Pass through in U S Gasoline Markets written by and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The price pass-through relationship of retail gasoline markets in the United States has been examined on several levels. This dissertation takes two unique approaches to examine the pass-through behavior (1) a seemingly unrelated regressions model to survey regional differences in gasoline markets and (2) a pooled panel error-correction approach to analyze the effects of spatial competition on local Mississippi gasoline markets. The first model showed the presence of rockets and feathers on a regional level in the US. Moreover, every PADD had a long run asymmetric price pass-through relationship. I included variables to capture the effect of Hurricane Katrina. The inclusion of the Katrina variable indicated only the immediate period after the storm changed the pass-through behavior. Additionally, the market returned to the pre-Katrina pass-through relationship twelve weeks after the storm. The pooled panel model showed the presence of rockets and feathers in the state of Mississippi. It also indicated that the presence of spatial competition does have an effect on the price pass-through behavior. Moreover, the exact distance to the closest competitor did have a significant effect on the price pass-through relationship.
Download or read book Asymmetric Pass Through in U S Gasoline Prices written by Federal Trade Commission and published by CreateSpace. This book was released on 2014-09-25 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book presents new evidence of asymmetric pass-through, the notion that upward cost shocks are passed through faster than downward cost shocks, in U.S. gasoline prices. Much of the extant literature comes to seemingly contradictory conclusions about the existence of an asymmetry, though the differences may be due to different aggregation (both over time and geographic markets) and the use of different price series including crude oil, wholesale, and retail gasoline prices. I utilize a large and detailed dataset to determine where evidence of a pass-through asymmetry exists, and how it depends on the aggregation and price series chosen by the researcher. Using the standard error correction model, I find evidence of pass-through asymmetry in the response of daily and weekly retail prices to wholesale rack price changes, though the magnitude varies by geographic market. On average, retail prices rise more than four times as fast as they fall. Branded gasoline features significantly more asymmetry with respect to rack prices compared with unbranded gasoline. Over time, nation-wide asymmetry varies significantly from year to year peaking in 2005. Midwest cities, like Louisville and Minneapolis, feature more asymmetry compared with other parts of the country. F-tests broadly confirm the results and illustrate that data selection and aggregation, as well as model specification, can have important implications on the findings of asymmetric pass-through.
Download or read book The Distributional Implications of the Impact of Fuel Price Increases on Inflation written by Mr. Kangni R Kpodar and published by International Monetary Fund. This book was released on 2021-11-12 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the response of consumer price inflation to changes in domestic fuel prices, looking at the different categories of the overall consumer price index (CPI). We then combine household survey data with the CPI components to construct a CPI index for the poorest and richest income quintiles with the view to assess the distributional impact of the pass-through. To undertake this analysis, the paper provides an update to the Global Monthly Retail Fuel Price Database, expanding the product coverage to premium and regular fuels, the time dimension to December 2020, and the sample to 190 countries. Three key findings stand out. First, the response of inflation to gasoline price shocks is smaller, but more persistent and broad-based in developing economies than in advanced economies. Second, we show that past studies using crude oil prices instead of retail fuel prices to estimate the pass-through to inflation significantly underestimate it. Third, while the purchasing power of all households declines as fuel prices increase, the distributional impact is progressive. But the progressivity phases out within 6 months after the shock in advanced economies, whereas it persists beyond a year in developing countries.
Download or read book Gas Prices written by United States. Congress. Senate. Committee on Governmental Affairs. Permanent Subcommittee on Investigations and published by . This book was released on 2002 with total page 742 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Dynamic Fuel Price Pass Through written by Mr.Kangni R Kpodar and published by International Monetary Fund. This book was released on 2017-01-18 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper assesses the dynamic pass-through of crude oil price shocks to retail fuel prices using a novel database on monthly retail fuel prices for 162 countries. The impulse response functions suggest that on average, a one cent increase in crude oil prices per liter translates into a 1.2 cent increase in the retail gasoline price at peak level six months after the shock. However, the estimates vary significantly across country groups, ranging from about 0.5 cent in MENA countries to two cents in advanced economies. The results also show that positive oil price shocks have a larger impact than negative price shocks on the retail gasoline price. Finally, the paper underscores the importance of the new dataset in refining estimates of the fiscal cost of incomplete pass-through.
Download or read book Price Changes in the Gasoline Market written by and published by DIANE Publishing. This book was released on 1999 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report examines a recurring question about gasoline markets: why, especially in times of high price volatility, do retail gasoline prices seem to rise quickly but fall back more slowly? Do gasoline prices actually rise faster than they fall, or does this just appear to be the case because people tend to pay more attention to prices when they`re rising? This question is more complex than it might appear to be initially, and it has been addressed by numerous analysts in government, academia and industry. The question is very important, because perceived problems with retail gasoline pricing have been used in arguments for government regulation of prices. The phenomenon of prices at different market levels tending to move differently relative to each other depending on direction is known as price asymmetry. This report summarizes the previous work on gasoline price asymmetry and provides a method for testing for asymmetry in a wide variety of situations. The major finding of this paper is that there is some amount of asymmetry and pattern asymmetry, especially at the retail level, in the Midwestern states that are the focus of the analysis. Nevertheless, both the amount asymmetry and pattern asymmetry are relatively small. In addition, much of the pattern asymmetry detected in this and previous studies could be a statistical artifact caused by the time lags between price changes at different points in the gasoline distribution system. In other words, retail gasoline prices do sometimes rise faster than they fall, but this is largely a lagged market response to an upward shock in the underlying wholesale gasoline or crude oil prices, followed by a return toward the previous baseline. After consistent time lags are factored out, most apparent asymmetry disappears.
Download or read book Gasoline Prices Oil Company Profits and the American Consumer written by United States. Congress. House. Committee on Energy and Commerce. Subcommittee on Oversight and Investigations and published by . This book was released on 2007 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Exchange Rate Vs Foreign Price Passthrough Gap written by George Deltas and published by . This book was released on 2019 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: We show that European retail gasoline prices respond slower to changes in the dollar exchange rate than to changes in the international spot price of wholesale gasoline, which is quoted in dollars. This differential passthrough is not specific to the Euro, and is observed both for Euro-member states and also for those using national currencies. We examine the possibility that this pattern is driven by differences in either the variability and or persistence of exchange rates changes relative to those of the dollar price of gasoline, but find minimal supporting evidence for either. Refinery supply contracts treat changes in the dollar price and the exchange rate symmetrically, and are thus also an unlikely explanation. Other possibilities, such pricing to the market or pricing based on the country of origin are precluded by the nature of the product. There is evidence, however, that exchange rate fluctuations are more strongly correlated with country-specific economic conditions, which reduces the ability of firms to pass-through price increases and lessens their incentive to pass-through price decreases. Moreover, consumers likely draw a more direct link between the crude oil and retail gasoline prices, affecting their price expectations and search intensity, and optimal passthrough.
Download or read book Gasoline Prices written by Barbara V. Urban and published by Nova Publishers. This book was released on 2005 with total page 124 pages. Available in PDF, EPUB and Kindle. Book excerpt: As major energy legislation moved to conference, the high price of gasoline remained a major consideration. The legislative proposals of past Congresses have contained numerous provisions that would affect gasoline supply and demand. This is true also of the Energy Policy Act of 2005, H.R. 6, both the version passed by the House April 21, and the Senate bill, passed June 28. A large number of factors combined to put pressure on gasoline prices, including increased world demand for crude oil and US refinery capacity inadequate to supply gasoline to a recovering national economy. The war and continued violence in Iraq added uncertainty and a threat of supply disruption that added pressure particularly to the commodity futures markets. Numerous provisions in legislative proposals in the 108th Congress addressed perceived problems in the oil and gasoline markets. A comprehensive energy policy bill was reported out of conference and approved by the House, but several issues kept the bill from passing the Senate. Among the most controversial were provisions regarding the use of ethanol and the additive methyl tertiary butyl ether (MTBE) in motor fuel, proposals to open up part of the Arctic National Wildlife Refuge (ANWR) to oil and gas development, measures concerning corporate average fuel economy (CAFE) standards, and proposals to aid construction of new refineries and to harmonise state "boutique fuels" standards. In the 109th Congress, the House passed a comprehensive bill, H.R. 6, with many of the same provisions of the bill considered in the previous Congress. As before, MTBE and ANWR, included in the House-passed bill, remain controversial. The House bill added another controversial provision, giving the Federal Energy Regulatory Commission (FERC) overriding authority over state entities in licensing terminals to receive and process liquefied natural gas. In the Senate version of H.R. 6, the MTBE safe harbour provision has been omitted. The Senate bill contains a provision, not in the House-passed version, directing the President to take measures to reduce total demand for petroleum by one million barrels per day (mbd) by 2015. An amendment by Senator Cantwell, which would have set the goal of reducing petroleum imports by 40% by 2025, was defeated on the floor by a vote of 47-53. The gasoline price surge heightened discussion of energy policy, but the urgency of previous energy crises has been lacking. In part this may be due to the fact that there has been no physical shortage of gasoline, and no lines at the pump. In addition, the expectation of former crises, that prices were destined to grow ever higher, has not been prevalent. However, the persistence of high gasoline and oil prices into a second summer has raised alarms over the economic consequences of the situation.
Download or read book West Coast Gasoline Prices written by United States. Congress. Senate. Committee on Commerce, Science, and Transportation. Subcommittee on Consumer Affairs, Foreign Commerce, and Tourism and published by . This book was released on 2003 with total page 110 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Motor Fuels written by and published by DIANE Publishing. This book was released on 2005-09 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt: This primer will help improve public understanding of the major factors that influence the U.S. price of gasoline & the challenges facing the U.S. on issues related to gasoline supply, demand, & prices. This primer presents information on the factors that influence the price of gasoline &, to the extent possible, why those factors have developed. Specifically, it explains how gasoline is made & distributed, what consumers pay for in a gallon of gasoline, why gasoline prices change over time, & why gasoline prices vary from place to place. The information is presented in a question-&-answer format & is written for a nontechnical audience. Charts, tables & graphs.
Download or read book Gasoline price changes the dynamic of supply demand and competition written by and published by DIANE Publishing. This book was released on 2005 with total page 166 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Time Lags in the Pass Through of Crude Oil Prices Big Data Evidence from the German Gasoline Market written by Manuel Frondel and published by . This book was released on 2015 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Petroleum Product Price Regulations written by Scott Harvey and published by . This book was released on 1981 with total page 236 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Gasoline Prices written by United States. Congress. Senate. Committee on Energy and Natural Resources and published by . This book was released on 2006 with total page 160 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Recent Increases in Gasoline Prices written by United States. Congress. Senate. Committee on Energy and Natural Resources and published by . This book was released on 1996 with total page 112 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Time Lags in the Pass through of Crude oil Prices written by Manuel Frondel and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
