This paper examines which petroleum prices best explain changes in gasoline and diesel prices during three distinct periods of fuel price volatility during the 2003 to 2010 period. The results indicate that spot retail fuel prices are best explained by their futures prices over most periods,...

The motivation for this paper began with casual empiricisms regarding the brief distributed lag of retail gasoline prices behind crude oil futures. We developed a model consistent with our hypothesis and tested it with econometrics using statistical data that include the sharp decrease in crude...