Weekly Extract - Fuel

Week of April 4 to 8

Fuel, the higher the prices, the lower the income.

The most important component, out of four, in determining the price of fuel is the price of crude oil on international markets.

Sales taxes, along with taxes levied by local and municipal governments, can have a significant impact on the price of gasoline in some locations.

The other components that influence the price of gasoline are refining, distribution and marketing costs.

For this reason, although the valuations of the shares of companies in the hydrocarbon industry, even though at first glance they have risen on the back of rising crude oil prices, the fundamentals show a somewhat different story, as the increase in the main raw material (crude oil) increases, so do production costs and profit margins shrink.