Why Gas Prices Go Up and Down

There are five primary factors that effect the pricepay to buy from that brand. This makes up around
you11% of
pay for gas at the pump. Prices generally increasethe total price.The forth factor accounts for about
when20% of the total cost
the world crude oil market lowers their inventories.of gas, and it includes federal and local taxes. State,
Also,local and city taxes vary, accounting for some of the
when demand exceeds refinery capacity gas pricesfluctuation you may see in gas prices in different
increase.The first factor that makes up the price ofgeographical areas.The fifth factor is the markup at
gas at youryour local gas station.
local station is crude oil suppliers. This makes up aboutObviously your local gas station is in business to make
59% of the price you pay for gas and it is determined
bymoney and has employees to pay. So you know that
the world's oil-exporting countries, particularly OPEC,they must
the Organization of the Petroleum Exporting Countries.make money on every gallon of gas they sell. You
Themay be
amount of crude oil that these countries producesurprised however to learn that the amount is
determinesgenerally
the price per barrel of oil.The next factor that effectsnot more than 10 cent and may be as low as a
gas prices is the cost ofpenny per
refining the crude oil. This makes up about 10% of thegallon! Some states do have laws governing station
total price of gas.The third factor is the cost ofmarkup
transporting the crude oiland require a minimum percentage markup to protect
to a refinery, then the refined gas to a distribution pointsmall
and finally to your local gas station. If you are buying astations from being put out of business by larger
brand name of gasoline, the cost that companycompanies
spends inwho may want to undercut them.Lisa Beers is an
marketing their brand will also be added to the priceexpert in increasing gas mileage for
youany vehicle.