OCR Text |
Show GASOLINE PRICES EXPLAINED The outstanding point in regard to the tank-wagon price of gasoline gas-oline during the past five years, is its low level as compared with prices of most other commodities. At the end of 1925, for example, ex-ample, the tank-wagon price of gasoline in New York City was a little more than the average price for 1913, whereas the calculated price of all commodities combined was more than 50 per cent higher. high-er. Prices of gasoline were highest in 1920 and the early part of 1921, when the tank-wagon price in New York for a time reached 31 cents a gallon. The period from 1921 to 1924 inclusive witnessed wit-nessed a general reduction in gasoline prices throughout the country, coun-try, followed by a slight reaction in 1925, which brought the prices for that year about on a par with those of 1923. During 1925 the average tank-wagon prices at New York, Washington, Chicago, New Orleans and San Francisco were all less than 20 cents a gallon. The price of the raw material crude petroleum inevitably affects the price of gasoline . The usual early spring advances in price of crude, occasioned by the decreased output during winter months, has generally been accompanied by higher prices of gaso-L gaso-L line. Prices of gasoline are sensitive to increases or decreases in f stocks of crude, perhaps more so than to fluctuations in stocks of gasoline. The upward reaction of gasoline prices in 1925 was caused caus-ed primarily by greater firmness in the market for crude through a cessation of additions to stocks. Likewise, the low prices of gasoline this year have been caused by large additions to stocks. When supply and demand are more near equal, prices will again rise . |