Oversupply of crude oil and a mild hurricane season have led to a fall in gasoline prices in United States, which were hovering around $2.20 per gallon (national retail average) on October 20, down about 3.5% in the past two weeks, according to a nationwide survey of about 6,000 gas stations. The gasoline prices have fallen by over 17% from $2.66 during the corresponding period, last year. Market analysts say that the gasoline prices would depend entirely on the price of crude, which constitutes 55% of the cost of gasoline, according to the figures released by the U.S Department of Energy. Since the price of crude forms the larger portion of the price of gasoline in United States, unlike in countries like Japan and in Europe, the retail price of gasoline is subject to greater fluctuations than in other countries, but is actually less variable in absolute terms.

Taxes account for 19% of the gasoline prices and refining costs account for 22% of the price. Trilby Lundberg, the editor of the survey on gasoline prices across U.S, said that the gasoline prices will remain more or less stable, if the crude oil prices do not appreciate substantially. He added that the direction of the gasoline prices in the short to medium term will be entirely based on the price of crude.

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