Gasoline Prices

Topics: Petroleum, Cost, Price Pages: 1 (296 words) Published: October 18, 2008
Rising Gasoline Prices

Over the past four years, Americans have been battling with high gas prices. The price of gas affects everyone's lives. High gasoline prices hurt many people’s budgets. The prices at the gas pumps are not our only concerns. If gas prices go up then the cost of consumer products will go up. Many people need gas to drive to work. Gas prices continue to increase, making people in the United States feel the affects. Gas should be made affordable so it does not negatively interrupt our lives. If people spend less money on gas they will have more money to spend on other needed products, such as utility bills. If gas prices go up any more it will hurt the nation’s economy.

Gasoline is the bloodline that keeps America moving. The gas and oil companies know that we need gasoline and will be forced to pay the high prices in order to make a living. Many people do not understand how gas prices are determined. The cost to produce and sell gasoline to consumers includes the cost of crude oil to refiners, the costs to refine, market and distribution of gasoline, and the retail station costs and taxes. In 2007, these costs were divided up based on the retail price of $2.80 per gallon. Distribution and marketing was 10%, refining costs and profits were 17%, federal and state taxes were 15%, and the cost of crude oil was 58%.

Gasoline prices can change rapidly if something disrupts the supply of crude oil. One good example would be Hurricane Katrina. The production rates went down and therefore caused a gasoline price hike. Another event that has affected the gasoline prices is the war that our country is currently in.
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