Gas prices fluctuate depending on the price of crude oil. The price of crude oil, in turn is determined by the world and depends on the balance between world demand and supply. Currently, few countries supplying oil, as this is the only countries that oil reserves and production. The demand for oil, but also includes the question of the majority of world nations.
Another factor that determines pricing is how much we gasoline demand in relation to the offer. The more we need, the more will the gas price. There are some federal and state requirements that call for special gas combines with the intention of improving air quality. This makes the production of gasoline more expensive, and therefore the price rises. The charges to be levied on gas in gas prices have greatly influenced the last ten years. Changes in the petroleum industry, including mergers, the gas price change over time. At present, the states of California and Hawaii have the highest price for gas in the U.S., however, compared with the rest of the industrialized world, it is one of the lowest. The price of gas in Europe is more than double those in the U.S., as a result of higher fuel excise. And in other energy-importing countries like Japan, petrol costs are higher, because the transportation of fuel costs and taxes. However, some of the largest oil producing countries like Iran and Indonesia provide subsidized gas at low market prices.
Individual gas stations have no control over gas prices, as the world market determine the price. They can charge a margin of between 7 to 11 cents per gallon gasoline became a commodity, and the gas station that costs more, tend to lose customers to other service stations. This is the reason gas stations sell higher-margin convenience food products in their stores. It is during the weekends and holidays, when the American road travel is at its peak that gas prices rise, only to drop as the holiday close.
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