Gasoline Price Changes - Federal Trade Commission

THE DYNAMIC OF SUPPLY, DEMAND, AND COMPETITION
C. Imports of Gasoline into the U.S. Have Risen over the Past Decade.
Imports of finished gasoline and gasoline blendstocks 58 also have assisted in meeting
increased U.S. demand. Imports of refined petroleum products have increased somewhat in
recent years and are expected to become much more important in the future. 59 See Figure 3-11.
For example, the annual average of weekly gasoline imports increased from 340,000 barrels per
day in 1992 to 880,000 barrels per day in 2004 – an increase in imports from 4.7 percent of
supply in 1992 to 9.7 percent of supply in 2004. 60
Thousand Barrels per Day
1,000
900
800
700
600
500
400
300
200
100
0
Source: EIA
Figure 3-11: U.S. Annual Average of Weekly Gasoline Imports (1992 to 2004)
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
V. PROFITS PLAY NECESSARY AND IMPORTANT ROLES IN A MARKET
ECONOMY. IN THE OIL INDUSTRY, PROFITS HAVE VARIED WIDELY
OVER TIME.
Profits for some companies in the oil industry recently have been very high.
ExxonMobil, for example, has become the world’s most profitable company, with net income of
$23.5 billion. Some have criticized oil companies severely for making this level of profits. The
same high prices for crude oil and gasoline that have led to high profits in the oil industry also
have led to increased consumer expenditures on gasoline. In 2003, the average household spent
$1,333 on gasoline and motor oil. 61 With prices increasing almost 19 percent in 2004, the
average household needed to spend an extra $250 to purchase the same amount of gasoline in
CHAPTER 3: THE NATIONAL LEVEL 59