Posted:
February 27, 2013
In a letter to House of Representatives Subcommittee on Coast Guard and Maritime Transportation Chairman Duncan Hunter (R-CA) and Ranking Member John Garamendi (D-CA), the American Maritime Partnership Board of Directors provided an analysis of factors related to the cost of gasoline and emphasized that transportation costs are not responsible for the spike in gas prices.
"The spike in the price of gasoline has received national attention as the average price of gasoline had increased every day for more than a month," the American Maritime Partnership (AMP) Board of Directors stated. "A small number of misinformed individuals have blamed the increase on American shipping companies. However, we want you to know that the change in the cost of gasoline is not the result of transportation costs.
"Although the Washington Post recently dubbed the increase 'a mysterious climb,' in fact the price of gasoline is always heavily tied to the global price of crude oil. Almost 70 percent of the cost of gasoline is linked to the cost of crude oil," AMP noted.
"Many experts say the recent spike in crude oil prices is tied to more demand in an improving economy throughout the world, particularly in China. Other factors include the value of the dollar, geopolitical issues, global supply/demand, inflation, and weather, just to name a few.
"Crude oil, combined with federal, state and local taxes, accounts for 82% of the ultimate price of gas for consumers," AMP wrote.
"Crude oil and gasoline are transported into and within the U.S. on railroads, pipelines, foreign flag vessels, and American vessels. The price of shipping within the United States is a minimal factor in the overall supply chain. Accusations that American shipping is somehow the cause of the recent spike in gasoline prices are pure fiction. Gasoline prices have increased in every part of the country, even in those regions where domestic vessels play no part in the transportation."
American Maritime Officers Service is a member of AMP and American Maritime Officers participates. The complete letter is available on the AMP website.
AMP: spike in price of gasoline not a result of transportation costs
In a letter to House of Representatives Subcommittee on Coast Guard and Maritime Transportation Chairman Duncan Hunter (R-CA) and Ranking Member John Garamendi (D-CA), the American Maritime Partnership Board of Directors provided an analysis of factors related to the cost of gasoline and emphasized that transportation costs are not responsible for the spike in gas prices.
"The spike in the price of gasoline has received national attention as the average price of gasoline had increased every day for more than a month," the American Maritime Partnership (AMP) Board of Directors stated. "A small number of misinformed individuals have blamed the increase on American shipping companies. However, we want you to know that the change in the cost of gasoline is not the result of transportation costs.
"Although the Washington Post recently dubbed the increase 'a mysterious climb,' in fact the price of gasoline is always heavily tied to the global price of crude oil. Almost 70 percent of the cost of gasoline is linked to the cost of crude oil," AMP noted.
"Many experts say the recent spike in crude oil prices is tied to more demand in an improving economy throughout the world, particularly in China. Other factors include the value of the dollar, geopolitical issues, global supply/demand, inflation, and weather, just to name a few.
"Crude oil, combined with federal, state and local taxes, accounts for 82% of the ultimate price of gas for consumers," AMP wrote.
"Crude oil and gasoline are transported into and within the U.S. on railroads, pipelines, foreign flag vessels, and American vessels. The price of shipping within the United States is a minimal factor in the overall supply chain. Accusations that American shipping is somehow the cause of the recent spike in gasoline prices are pure fiction. Gasoline prices have increased in every part of the country, even in those regions where domestic vessels play no part in the transportation."
American Maritime Officers Service is a member of AMP and American Maritime Officers participates. The complete letter is available on the AMP website.