Moreover, gasoline prices are no longer buffered against increasing crude oil costs as they  BIS Review 60/2004  1  were during the summer surge in crude oil prices. Earlier refinery capacity shortages had augmented gasoline refinery-marketing margins by 20 to 30 cents per gallon.
But those elevated margins were quickly eroded by competition, thus allowing gasoline prices to actually fall during the summer months even as crude oil prices remained firm. That cushion no longer exists. Refinery-marketing margins are back to normal and, hence, future gasoline and home heating oil prices will likely mirror changes in costs of light crude oil.