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Economic Determinants of Gasoline Prices: A Cointegration Analysis for Czechia

Year: 2025

Type: article

Abstract: The long-term relationships between the N95 ("Natural 95") gasoline prices and economic factors, such as Brent crude oil prices, diesel fuel prices, and the CZK/USD exchange rate from 2014 to 2024, was investigated within this research. The Engle-Granger cointegration test was used to identify any stable long-term connections between these variables. Despite the comprehensive tests, facilitated by the Matlab software, no evidence of cointegration was consistently found, indicating that these economic factors do not significantly influence N95 gasoline prices over the long term. The findings suggest that, while the short-term fluctuations in these economic indicators may temporarily impact gasoline prices, they are not reliable predictors of the long-term trends.

Source: Communications - Scientific letters of the University of Zilina

DOI: 10.26552/com.c.2025.043

Authors: Jiří Alina, Jiří Nožička

Language: English

Topic: Market Dynamics and Volatility

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: diamond

OpenAlex ID: W4411329678

FWCI:

Cites: 19

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Related to: 10