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Why does the price of crude oil affect the price of fuels such as gasoline?

April 26, 2017affect crude fuels gasoline Oil price

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Why does the price of crude oil affect the price of fuels such as gasoline?

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Crude oil is the raw material used to make fuels such as gasoline. An increase or decrease in the cost of oil changes how much refiners pay to buy and refine the oil into gasoline. Refiners sell their products to marketers and distributors who in turn pass on the higher or lower prices to consumers at the pumps.