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Why Track Fuel Costs?

Understanding your vehicle’s fuel consumption helps you make informed decisions about driving habits, budgeting, and potential vehicle efficiency improvements. By monitoring fuel costs, you can identify opportunities to save money and reduce your environmental impact.

Government intervention

Governments may intervene in gasoline (referred to as petrol in some parts of the world) markets by taxation, which may raise prices for consumers within or outside the governmental territory. Similarly, certain industries may receive financial support from the government to promote commercial enterprise (a subsidy). Generally, subsidized products or services can be sold at lower prices.

Financial markets

The global oil price fluctuates constantly. The key crudes quoted are Brent and West Texas Intermediate (WTI) in the unit of US$ per barrel. The retail fuel price is closely related to the global oil price fluctuation.

Politics

Political elements such as structure, regime, personnel, and events can all affect the cost of fuel. For instance, a change in leadership from a leader who doesn’t believe in climate change to one who does may result in changes to the cost of fuel for consumers based on different policies, such as choosing not to subsidize fuel. Political relationships between countries are also a factor; nations can go to war over resources, or form alliances in order to trade, both of which can affect the cost of fuel.

Geographic area

Certain geographical areas or countries in the world have an abundance of oil, while others do not have a single drop. Regional consumers within close proximity of high supplies of oil are more likely to have lower costs of fuel due to ease of access. Areas without their own supply of oil that are isolated from the rest of the world (such as islands in the Pacific) can find fuel to be relatively expensive.

Natural disaster or weather

Earthquakes, tsunamis, hurricanes, major floods, and other such nature-related phenomena can affect the production, manufacturing, and logistics of gasoline, which can possibly affect the price of fuel. For instance, a snowstorm may close certain roads, disallowing the transportation of the resource and driving up fuel costs in these areas. Hurricanes or earthquakes can damage oil refineries, abruptly halting production, which can also eventually increase fuel costs.