Slide 3 of 10

Notes:

• Retail gasoline price movements are generally the product of several influences.

• Because gasoline is refined from crude oil, of course, the price of crude is the single biggest determinant of gasoline prices. For reasons we’ll see in a moment, crude oil prices in the U.S. and worldwide have been declining since last fall.

• Even in the absence of changes in crude oil prices, gasoline prices exhibit a strong seasonal pattern, tending to rise in the spring and summer, when demand is greater, and decline through the fall and winter.

• Additionally, gasoline prices, like those for any other commodity, are sensitive to any other events affecting the balance of supply and demand. In the case of gasoline, such influences can include relatively high or low inventory levels, refinery shutdowns, and changes in import levels, to name a few.