Yesterday, we discussed two of the main factors of today’s gas prices – the price of crude oil and the falling dollar. Today, we’ll discuss some of the miscellaneous factors that account for the remaining percentage of the price per gallon.
Demand
The demand for gasoline plays a pivotal role in the price per gallon, too. With the added number of cars throughout China and India, there’s an increased demand all over the world. Those two nations have literally added millions of new vehicles to the roadways in recent years. Of course, demand works the other way, too. When there is less demand, prices typically drop. However, that takes awhile to happen. So if you’re thinking that Americans should just take a week off from buying gas, that’s not enough to bring the prices down.
Refineries
The number of refineries that we can use contributes to the price of gasoline. When Hurricane Katrina happened, the price of gas went up because many refineries were knocked out of commission. But the efficiency of the current refineries also affects the prices. The more efficient they are, the less money you pay at the pump.
Local and Federal Taxes
Now we come to the taxes. In addition to the federal tax of about 20 cents per gallon, there are also local taxes that influence the prices at the pump. That’s one reason why California prices are typically much higher than the average prices across the country.
Before we vilify the “big bad” oil companies, let’s take a look at all the reasons are gas prices are so high. But if those high prices are too rich for your blood, check out the latest fuel-efficient vehicles at your local Pontiac dealer . Visit one today and start saving your gas money the minute you drive off the lot!
