IDEAS home Printed from https://ideas.repec.org/a/kap/iaecre/v4y1998i3p282-28810.1007-bf02294897.html
   My bibliography  Save this article

The relationship between crude oil and gasoline prices

Author

Listed:
  • Ali Akarca
  • Dimitri Andrianacos

Abstract

This study investigates the dynamic relationship between crude oil and retail gasoline prices during the last 21 years and determines that, in February 1986, the relationship had drastically changed. Since that date, the results show that gasoline prices include higher profit margins, respond substantially less to changes in crude oil prices(but still within one month), and are more volatile. Also discussed are the developments in crude oil and gasoline markets that have led to the above changes. Copyright International Atlantic Economic Society 1998

Suggested Citation

  • Ali Akarca & Dimitri Andrianacos, 1998. "The relationship between crude oil and gasoline prices," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 4(3), pages 282-288, August.
    • Handle: RePEc:kap:iaecre:v:4:y:1998:i:3:p:282-288:10.1007/bf02294897
    DOI: 10.1007/BF02294897
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/BF02294897
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/BF02294897?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Apostolos Serletis, 2007. "Unit Root Behavior in Energy Futures Prices," World Scientific Book Chapters, in: Quantitative And Empirical Analysis Of Energy Markets, chapter 1, pages 7-14, World Scientific Publishing Co. Pte. Ltd..
    2. Brunner, Karl & Meltzer, Allan H., 1988. "Stabilization policies and labor markets," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 28(1), pages 1-8, January.
    3. Francisco R. Parra, 1994. "OPEC and the Price of Oil in 1993," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 17-30.
    4. Robert Mabro, 1992. "OPEC and the Price of Oil," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    5. G. E. P. Box & G. C. Tiao, 1976. "Comparison of Forecast and Actuality," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 25(3), pages 195-200, November.
    6. Ali Akarca & Dimitri Andrianacos, 1997. "Detecting break in oil price series using the Box-Tiao method," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 3(2), pages 217-224, May.
    7. Tatom, John A., 1988. "Are the macroeconomic effects of oil-price changes symmetric?," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 28(1), pages 325-368, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chang, Dongfeng & Serletis, Apostolos, 2018. "Oil, Uncertainty, And Gasoline Prices," Macroeconomic Dynamics, Cambridge University Press, vol. 22(3), pages 546-561, April.
    2. Brewer, Jedidiah & Nelson, David M. & Overstreet, George, 2014. "The economic significance of gasoline wholesale price volatility to retailers," Energy Economics, Elsevier, vol. 43(C), pages 274-283.
    3. Jonathan E. Ogbuabor & Anthony Orji & Gladys C. Aneke & Manasseh O. Charles, 2019. "Did the global financial crisis alter the oil–gasoline price relationship?," Empirical Economics, Springer, vol. 57(4), pages 1171-1200, October.
    4. Grasso, Margherita & Manera, Matteo, 2007. "Asymmetric error correction models for the oil-gasoline price relationship," Energy Policy, Elsevier, vol. 35(1), pages 156-177, January.
    5. England, Richard W., 2007. "Motor fuel taxation, energy conservation, and economic development: A regional approach," Ecological Economics, Elsevier, vol. 61(2-3), pages 409-416, March.
    6. Mehmet Efe Biresselioglu & Muhittin Hakan Demir & Evrim Ozyorulmaz, 2014. "The Rationale behind Turkey's High Gasoline Prices," Energy & Environment, , vol. 25(8), pages 1359-1379, December.
    7. Jordi Perdiguero-García, 2010. "“Symmetric or asymmetric gasoline prices? A metaanalysis approach”," IREA Working Papers 201013, University of Barcelona, Research Institute of Applied Economics, revised Nov 2010.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ali Akarca & Dimitri Andrianacos, 1997. "Detecting break in oil price series using the Box-Tiao method," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 3(2), pages 217-224, May.
    2. Ray Barrell & Knut A. Magnussen, 1996. "Counterfactual Analyses of Oil Price Shocks using a World Model," Discussion Papers 177, Statistics Norway, Research Department.
    3. Williams Olatubi & Sung No, 2003. "On the vulnerability of the oil and gas industry to oil price changes," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 31(4), pages 363-375, December.
    4. Mehdi Behname, 2013. "The relationship between Market Size, Inflation and Energy," Economic Analysis Working Papers (2002-2010). Atlantic Review of Economics (2011-2016), Colexio de Economistas de A Coruña, Spain and Fundación Una Galicia Moderna, vol. 2, pages 1-1, December.
    5. Lacheheb, Miloud & Sirag, Abdalla, 2019. "Oil price and inflation in Algeria: A nonlinear ARDL approach," The Quarterly Review of Economics and Finance, Elsevier, vol. 73(C), pages 217-222.
    6. Liu, Wei-han, 2016. "A re-examination of maturity effect of energy futures price from the perspective of stochastic volatility," Energy Economics, Elsevier, vol. 56(C), pages 351-362.
    7. Banerjee, Gaurango, 2001. "Rules and discretion with common central bank and separate fiscal authorities," Journal of Economics and Business, Elsevier, vol. 53(1), pages 45-68.
    8. Sensoy, Ahmet & Hacihasanoglu, Erk, 2014. "Time-varying long range dependence in energy futures markets," Energy Economics, Elsevier, vol. 46(C), pages 318-327.
    9. Yuliya Lovcha & Alejandro Perez-Laborda, 2017. "Structural shocks and dynamic elasticities in a long memory model of the US gasoline retail market," Empirical Economics, Springer, vol. 53(2), pages 405-422, September.
    10. Ramcharran, Harri, 2002. "Oil production responses to price changes: an empirical application of the competitive model to OPEC and non-OPEC countries," Energy Economics, Elsevier, vol. 24(2), pages 97-106, March.
    11. Yudong Wang & Chongfeng Wu, 2013. "Efficiency of Crude Oil Futures Markets: New Evidence from Multifractal Detrending Moving Average Analysis," Computational Economics, Springer;Society for Computational Economics, vol. 42(4), pages 393-414, December.
    12. Cunado, Juncal & Perez de Gracia, Fernando, 2003. "Do oil price shocks matter? Evidence for some European countries," Energy Economics, Elsevier, vol. 25(2), pages 137-154, March.
    13. Alomar, Ibrahim, 2006. "النمو الاقتصادي العالمي وأثره في اقتصاديات النفط خلال الفترة 1980-2005 [World Economic Growth and its Effect on Economic of Energy during 1980-2005]," MPRA Paper 18979, University Library of Munich, Germany.
    14. Razin, A. & Sadka, E., 1991. "International Fiscal Policy Coordination and Competition," Papers 3-91, Tel Aviv - the Sackler Institute of Economic Studies.
    15. Ozdemir, Zeynel Abidin & Gokmenoglu, Korhan & Ekinci, Cagdas, 2013. "Persistence in crude oil spot and futures prices," Energy, Elsevier, vol. 59(C), pages 29-37.
    16. Ratti, Ronald A. & Vespignani, Joaquin L., 2015. "OPEC and non-OPEC oil production and the global economy," Energy Economics, Elsevier, vol. 50(C), pages 364-378.
    17. Brown, Stephen P. A. & Yucel, Mine K., 2002. "Energy prices and aggregate economic activity: an interpretative survey," The Quarterly Review of Economics and Finance, Elsevier, vol. 42(2), pages 193-208.
    18. Vinod Mishra & Russell Smyth, 2014. "Unit root properties of natural gas spot and futures prices: The relevance of heteroskedasticity in high frequency data," Monash Economics Working Papers 20-14, Monash University, Department of Economics.
    19. Cologni, Alessandro & Manera, Matteo, 2008. "Oil prices, inflation and interest rates in a structural cointegrated VAR model for the G-7 countries," Energy Economics, Elsevier, vol. 30(3), pages 856-888, May.
    20. Herbert, John H, 1995. "Trading volume, maturity and natural gas futures price volatility," Energy Economics, Elsevier, vol. 17(4), pages 293-299, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:iaecre:v:4:y:1998:i:3:p:282-288:10.1007/bf02294897. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.