Summary: Most Gasoline Price Movement Can Be Explained As Rational Market Behavior
EIA’s work to date has demonstrated rational market behavior behind gasoline prices
While much price variation can be explained, there is room for further study
Notes:
- EIA’s conclusion about gasoline prices to date is that rational market behavior seems to explain most of the variation we see in prices. We have reached this conclusion by studying the components of price, as described briefly in this presentation.
- However, there are still questions to be explored further, such as why we see the variation in pass through in the Midwest compared to other regions.