Crude oil is a commodity -- an item that's the same no matter who produces it but the price can fluctuate depending on various conditions. Those who trade in oil futures, or the price of oil at a later date, can have a huge effect on the supply of oil. In addition to futures trading, unforeseen events can have a negative impact on the supply of oil. An explosion at a refinery, for example, or the recent disaster with the BP oil spill in the Gulf of Mexico can hamper the supply of oil and drive up its price.
One way to predict whether gas prices will increase is to monitor the trading of crude oil on the New York Mercantile Exchange, or NYMEX, the market where commodities are traded in the U.S. You could also get news from a service like OPIS, the Oil Price Information Service, or several other sources of information on the oil market.
Many news services or web sites claim that gas prices are nearly ready to increase wildly; but take these predictions with a grain of salt. Some of them could be scams or could lead to bad investment decisions. It's best to stick with reliable, proven news outlets. And remember, like any commodity, no one can perfectly predict the future of gas prices. However, staying on top of current trends can be a good way to save money at the pump.
For more information about calculating fuel costs and other related topics, follow the links below.
Related HowStuffWorks Articles
Sources
- AAA. "AAA's Daily Fuel Gauge Report." (July 15, 2010) http://www.fuelgaugereport.com/
- MapQuest. "National Gas Prices." (July 15, 2010) https://gasprices.mapquest.com/
- OPISNet. "Petroleum News and Pricing." (July 15, 2010) http://www.opisnet.com/
- United States Environmental Protection Agency. "Links to Gasoline Price Data for U.S. Cities." (July 15, 2010) http://www.fueleconomy.gov/feg/gasprices/states/index.shtml
- Vanderwerp, Dave. "The Truth About EPA City / Highway MPG Estimates - Feature." CarAndDriver.com. August 2009. (July 15, 2010) http://www.caranddriver.com/features/09q3/the_truth_about_epa_city_highway_mpg_estimates-feature
- Woolsey, Matt. "The most expensive cities to buy gas in the U.S." MSNBC.com. Dec. 4, 2007. (July 15, 2010) http://www.msnbc.msn.com/id/22085640/
FAQs
Take the distance, 1,000 miles, and divide it by your vehicle's MPG, 33 miles. The result, which is 30, is the number of gallons of gas you'll need to complete the road trip. You can then multiply 30 by the current gas price — $3.397.
What is the formula for fuel cost? ›
Thus, the mileage of the car is 510/30 = 17 km/l. So, if Ramesh has to plan his next trip of 340 Km and the cost of the petrol is Rs. 120/litre, he can estimate the cost using the fuel cost calculator as (340/17) *120= 2400 INR, so he will keep aside a provision of Rs. 2400 for the cost of fuel during the trip.
How do you calculate actual fuel cost? ›
To calculate your fuel cost, you'll need to know: The amount of fuel you use • Fuel prices So, your Fuel cost = Fuel consumption x Fuel price Fuel consumption is the amount of fuel your car uses to travel from point A to B.
How do you calculate the amount of fuel? ›
How do I calculate fuel consumption per 100 km? To calculate fuel consumption per 100 km, divide the amount of fuel used in liters by the distance in kilometers and multiply the product by 100. If you want to find the fuel consumption per 10 km, perform the same first step but multiply the product by 10 instead of 100.
What is the formula for gasoline cost? ›
To calculate the fuel cost, you divide the distance by the fuel efficiency to determine the total number of gallons of fuel consumed. Then, you multiply that by the fuel price to obtain the total fuel cost.
What is the formula for fuels? ›
Petrol is made up of hydrocarbons. Hydrocarbons now have 5 to 12 carbon atoms per molecule. Petrol has a basic chemical formula because it is a mixture of several compounds that are blended as needed. As a result, its usual chemical formula is C n H 2 n + 2 .
How do you calculate fuel value? ›
Fuel Value Calculation
Convert molar enthalpy of combustion to energy per gram: Divide the molar enthalpy of combustion (kJ/mol) by the molecular weight (g/mol) of the fuel. This gives you the energy content in kJ/g.
What is the first step to calculate fuel costs? ›
First, divide the distance of the route by your miles per gallon figure to discover how many gallons of gas you will need, then multiply the number of gallons by the price of gas.
What is the formula for actual cost? ›
actual cost = direct materials cost + direct labor cost + allocated overhead (labor hours x actual overhead allocation rate)
How to calculate cost of fuel per mile? ›
How do you calculate fuel cost per mile? You can find the fuel cost per mile by taking the current per-gallon price of gas and dividing it by your vehicle's miles per gallon. This means you spend 14 cents on fuel for every mile that you travel in your vehicle.
The general equation for a complete combustion reaction is: Fuel + O2 → CO2 + H2O.
What is the formula for the amount of a gas? ›
First, let's review the ideal gas law, PV = nRT. In this equation, 'P' is the pressure in atmospheres, 'V' is the volume in liters, 'n' is the number of particles in moles, 'T' is the temperature in Kelvin and 'R' is the ideal gas constant (0.0821 liter atmospheres per moles Kelvin).
What is the formula of fuel gas? ›
⇒2×(CH)=C2H2. Q. A welding fuel gas contains carbon and hydrogen only. Burning a small sample of it in oxygen gives 3.38 g carbon dioxide, 0.690 g of water and no other products.
How are gas prices calculated? ›
Five Fast Facts About U.S. Gasoline Prices. Petroleum prices are determined by market forces of supply and demand, not individual companies, and the price of crude oil is the primary determinant of the price we pay at the pump.
How do you calculate gas per gallon? ›
An easy way to calculate gas mileage is to remember the odometer reading or to reset the mileage counter when filling up a gas tank. When doing so next time, obtain the mileage accrued between the two gas fill-ups. Then divide the mileage figure by the amount of gas filled the second time to obtain the gas mileage.
How is fuel charge calculated? ›
The calculation of fuel surcharge typically involves a percentage of the total transaction amount. For instance, if the fuel surcharge rate is 2.5% and the transaction amount is ₹5000, the surcharge would be ₹125 (5000 * 0.025).
What is the formula for calculating gas? ›
The ideal gas law states that PV = nRT, or, in plain English, that pressure times volume equals moles times the gas law constant R times temperature.
How do you calculate cost per MPG? ›
How do you calculate fuel cost per mile? You can find the fuel cost per mile by taking the current per-gallon price of gas and dividing it by your vehicle's miles per gallon. This means you spend 14 cents on fuel for every mile that you travel in your vehicle.
