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When crude oil prices change, how much should it affect gasoline prices?

April 26, 2017affect crude gasoline Oil prices

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When crude oil prices change, how much should it affect gasoline prices?

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Oil prices are generally quoted in U.S. dollars per barrel. A barrel contains just under 159 litres of liquid so, if changes in oil prices are fully reflected in the gasoline price, then a change in the price of oil of $1 per barrel would result in a change of 0.63 US cents per litre. This figure has to be adjusted to reflect the exchange rate. In addition, the result must be multiplied by 1.05 to reflect the GST.