What happened to US gasoline prices this time?

In August, US gasoline customers witnessed a sharp escalation in pump prices, which only recently began to abate. In the search for culprits, attention initially focused on crude prices, the key cost component in the production of gasoline. However, crude prices in July and August were relatively stable and declined through the first 3 weeks of September. Moreover, prices of other products, including diesel, jet fuel, and fuel oil did not show the same sharp price increases as gasoline. There were some summer gasoline supply hiccups, including those related to the blackout of electric power in the northeastern US and the rupture of the gasoline pipeline supplying Phoenix. Under normal cir...

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