Gasoline and diesel are two of the most common types of fuel used by any company. Two products that, in many cases, represent an important expense for any company. In this sense, it comes in hand to know the main factors that affect the price of gasoline and diesel.
Both are fuels that come from petroleum. However, the final product is obtained through a series of different processes and the addition of different components and additives. Diesel is generally cheaper, but gasoline generates fewer pollutant emissions and costs less in taxes.
Factors affecting gasoline and diesel prices
As you probably already know, the prices of both fuels are not fixed. They vary according to a series of factors. It is because of these factors that the price of gasoline or the price of diesel can go higher or lower.
The cost of petroleum
It is estimated that the cost of petroleum accounts for 36% of the total price of gasoline or diesel. Within the price of oil, which is also not fixed, a number of variables are involved.
The most important are global demand, future demand for oil as an asset and the geopolitical situation of the producing countries.
When petroleum reaches a country that is not a producer of this raw material, it is logical that the price of petroleum will increase. It is assumed, in this case, that both gasoline and diesel will have higher prices.
Taxes
One of the key factors determining the price of gasoline and diesel is the taxation of both fuels. In all countries, there are a series of taxes that mark the price of oil and, therefore, of these two fuels.
In Puerto Rico, for example, the cost of taxes is around 50%-60% of the price of gasoline and diesel.
In fact, the main tax affects crude oil, but also any other hydrocarbon blend.
Distribution costs and margins
The third factor that determines the price of gasoline and diesel is distribution costs and margins. This is the lowest factor, as it only affects between 10% and 20% of the final price of fuels.
Distribution costs, for example, refer to:
- The costs of the filling station.
- The prices of transportation to the filling station.
- The costs of strategic reserves.
Tips to control the price of gasoline and diesel fuels
At American Petroleum, we offer you the best prices for the supply and distribution of gasoline and diesel. An excellent service combined with the highest efficiency in deliveries.
Relying on a company like American Petroleum is the first step to control the price of fuels such as gasoline and diesel. Other tips to keep in mind would be the following:
- Plan trips and choose the best routes in transportation and delivery companies.
- To turn off the engines of the machines in prolonged stops.
- Carry out continuous maintenance of the machinery.
- Make use of the American Petroleum Fleet Card to manage fuel expenses.
- Rent a portable fueling station with American Petroleum to maximize efficiency at the company’s facilities.
Large companies must control the price of gasoline and diesel fuel as fixed expenses that affect the stability of the business. American Petroleum provides you with the best quality-price fuel distribution service.