Rising oil prices translate directly to higher gas prices

Comments Comments Off by MobileIQ on March 4, 2011

It’s pretty hard for most people to connect oil prices into something meaningful. After all, what does the difference between $70 and $90 per gallon actually mean to me?

I heard a simple way of understanding it this morning. Every ten dollar rise in the price per barrel costs an additional $.25 per gallon at the gas station. When oil prices rises from $70 to $90, you’re paying an extra $.50 per gallon to fill up your car, SUV or delivery van.

Oil prices have been relatively low recently and were about $90 per barrel at the end of 2010. That’s in sharp contrast to late 2008 when it hit $147 per barrel. If that happens again, expect to pay another $1.50 per gallon at the local gas station. For a typical SUV, that’s almost forty buck more to fill the tank.

Information in this article was provided by Oil-Price.net

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