Why is gallon of gas cheaper than gallon of milk?

Analysis explores factors related to production and storage, demand and packaging that influence consumer pricing of milk and gasoline.

August 19, 2016

1 Min Read
Why is gallon of gas cheaper than gallon of milk?

In a comment published in EARTH Magazine, Robert L. Fares, a postdoctoral fellow at the University of Texas at Austin, explores what causes the cost of a gallon of milk to be higher than a gallon of gas.

This phenomenon is not merely a recent outcome of the decreasing cost of oil; rather, it dates back at least a decade. Looking at all aspects of cost-relevant information, Fares explored the production and storage processes, consumer demand and packaging to break down and distinguish the factors that influence the costs of both gasoline and milk. For the analysis, go to http://bit.ly/2aYr2BH.

Published by the American Geosciences Institute, EARTH Magazine explores the science behind the headlines. The American Geosciences Institute is a nonprofit federation of geoscientific and professional associations representing more than 250,000 geologists, geophysicists and other earth scientists. Founded in 1948, the institute provides information services to geoscientists, serves as a voice of shared interests in the profession, plays a major role in strengthening geoscience education and strives to increase public awareness of the vital role the geosciences play in society's use of resources, resiliency to natural hazards and interaction with the environment.

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