What reporters should know about gas prices

By Paddy Hirsch

When it comes to reporting on personal finance issues, gasoline prices come close to the top of the list. That’s because the automobile is central to life in the United States: most people commute to work by car, even post-COVID, and most of those vehicles are still fueled by gasoline. 

Because of this, even small movements in gas prices can have outsize effects: on personal budgets, on consumer spending and on politics. Fortunately, there are plenty of resources available to the reporter to keep track of movements in prices.

PRICE DISCOVERY

Several sources provide data on gas prices, but the most accessible is the American Automobile Association. AAA monitors prices nationwide on its website, with clear, easy-to-follow graphic interfaces. It tracks and breaks down both national and regional prices, as well as historical data for the reporter. Moreover, the organization is always prepared to provide analysts to provide market commentary for stories.

Reporters who want to get more granular can go directly to the source: the Department of Energy and the Energy Information Administration. These are both government organizations that collect data directly from retailers around the country. The EIA data gets deep into the weeds, showing pricing in every individual kind of fuel sold in the US. The DoE breaks down what determines the cost of gasoline to consumers nationally, including taxes, refining and marketing.

MARKET ANALYSIS

A good reporter won’t be content with knowing how much gas prices have risen or fallen; they’ll want to know why. The DoE provides the government’s viewpoint, while AAA is a good independent voice on the subject. Another excellent resource is the Library of Congress, which provides a useful 30,000-foot view of the oil and gas business. 

To get the real detail behind the day’s gasoline story, however, reporters need to examine the two big factors that drive price movements: supply and demand.

SUPPLY

Gasoline is a derivative of crude oil, and the supply of crude to the market determines the price of gas at the pumps. If crude oil supplies fall, refiners have to pay more to buy it, and they pass those costs on to consumers. When crude supplies rise, gas prices generally come down. Reporters tracking gas prices, then, need to track oil prices, too. They can find data on a variety of websites that track movements in the price of crude. It’s worth keeping an eye on the Department of Energy newsroom too (and getting on their mailing list), to get news of the government tapping the country’s strategic reserves of crude oil. 

DEMAND

Consumers are the other big drivers of gas prices. The more we drive, the more gas we need, and as demand rises, prices do too. If we drive less - as we did during the pandemic - prices fall. Reporters can keep track of demand by monitoring both consumer and business activity on the roads. Analytics companies that track trends are always willing to provide sources for comment, and it’s well worth a reporter’s time to cultivate sources at these organizations, as they can alert the reporter to trends and news-making events.

COLOR

The best stories on gas prices will feature people whose lives are being affected by movements in the cost of this most important fuel. And there are numerous trade groups, like the American Petroleum Institute and the Western States Petroleum Association, that will jump at the chance to help a reporter out with finding a good character or source for a story. 

Reporters should be aware, of course, that these organizations are special interest groups. They are advocates for their industry, and their aim is to control or steer the narrative about the oil and gas business. Reporters, then, would be well advised to handle any information or assistance acquired from these groups with a healthy skepticism. That said, trade groups can be good resources for all sorts of data and news in their industry, and it is worth a reporter’s while to monitor their output for leads and stories.

ADDITIONAL RESOURCES

• Gasoline explained: Factors affecting gasoline prices (EIA)
• Five Fast Facts About U.S. Gasoline Prices (API)

Patrick Hirsch is a Freelance Reporter for NPR. He can be reached at paddy@paddyhirsch.com and their website is www.paddyhirsch.com. Finance 411 is a bi-monthly feature, presented by RTDNA and the National Endowment for Financial Education.

Finance 411 is a bi-monthly feature, presented by RTDNA and the National Endowment for Financial Education. Interested in becoming a contributor? Email info@rtdna.org for more information.