There are five main factors that affect the price you pay for gas at the pump. The prices go up when the general the crude oil in the world market will reduce their stockpiles. Also, if demand is greater than gas prices increase refining capacity.
The first factor that makes the price of gas at your local station is crude oil suppliers. This makes an increase of about 59% of the price you pay for gas and it is determined by the oil-exporting countries, particularly OPEC, the Organization of the Petroleum Exporting Countries. The crude oil these countries produce, provides the price per barrel of oil.
The next factor affecting gas prices, the cost of the refining of crude oil. This makes an increase of approximately 10% of the the total price of gas.
The third factor is the cost of transporting the crude oil to a refinery, the refined gas to a distribution point and finally to your local gas station. If you’re buying a brand of gasoline, the cost that company spends in the marketing of their brand will also be added to the price you pay to buy that brand. This represents about 11% of the the total price.
The fourth factor accounts for approximately 20% of the total cost of gas, and it includes the federal and local taxes. State, City and local taxes vary, accounting for some of the See any fluctuation in gas prices in different geographical areas.
The fifth factor is the markup at your local gas station. Obviously with your local gas station is in business to make and has the money to pay workers. So you know that they should make money on every gallon of gas they sell. You may be However surprised to learn that the amount is generally not more than 10 cents and can be as low as one per cent gallon! Some states have laws that the station markup and require a minimum percentage markup for the protection of small stations of that intention from the business by larger companies who might want among them.