How Gasoline Prices Work
Introduction to How Gas Prices Work
Image Gallery: Hybrid Cars
Photo by Justin Sullivan/Getty Images
High gas prices can make you stop and think about your commute. See hybrid car pictures to see models that save you money.In May 2008, average gas prices in the United States approached, and in some places passed, $4.00 a gallon, shattering records. But this was nothing new to American consumers. May was a month of records that broke one after another, and that came on the heels of months of rising prices. And then the cycle continued, with prices eventually falling and then inching toward the $4.00 mark again in 2011.
Gasoline is the bloodline that keeps America moving, and tracking gas prices can feel like a roller coaster ride. They 're down a little one month, up the next, and then they shoot up more than 50 percent in a year. Plus, they 're different depending on where you look. Other countries -- and even other states and cities -- can have very different gas prices from your local Gas-N-Go. To the average person, it probably seems as though there 's little rhyme or reason to how gas prices are determined. In this article, we will look at the forces that impact the price of gas at the pump, and we 'll find out where your gas money actually goes.
Americans have an insatiable thirst for gasoline. Just look at the amount of traffic on roads and highways, and you 'll see that a severe gas shortage would practically cripple the United States. Americans drive nearly 3 trillion miles per year, according to the Motor and Equipment Manufacturer 's Association [source: MEMA]. That 's about 820 trips from the sun to Pluto and back.
Up Next
•Gas Prices Quiz
•Why is summer fuel more expensive than winter fuel?
•TreeHugger.com: Ethanol Fuel Basics
The United States consumes about 20 million barrels of oil products per day (bbl/d), according to the Department of Energy [source: DOE]. Of that, almost half is used for motor gasoline. The rest is
Image Gallery: Hybrid Cars
Photo by Justin Sullivan/Getty Images
High gas prices can make you stop and think about your commute. See hybrid car pictures to see models that save you money.In May 2008, average gas prices in the United States approached, and in some places passed, $4.00 a gallon, shattering records. But this was nothing new to American consumers. May was a month of records that broke one after another, and that came on the heels of months of rising prices. And then the cycle continued, with prices eventually falling and then inching toward the $4.00 mark again in 2011.
Gasoline is the bloodline that keeps America moving, and tracking gas prices can feel like a roller coaster ride. They 're down a little one month, up the next, and then they shoot up more than 50 percent in a year. Plus, they 're different depending on where you look. Other countries -- and even other states and cities -- can have very different gas prices from your local Gas-N-Go. To the average person, it probably seems as though there 's little rhyme or reason to how gas prices are determined. In this article, we will look at the forces that impact the price of gas at the pump, and we 'll find out where your gas money actually goes.
Americans have an insatiable thirst for gasoline. Just look at the amount of traffic on roads and highways, and you 'll see that a severe gas shortage would practically cripple the United States. Americans drive nearly 3 trillion miles per year, according to the Motor and Equipment Manufacturer 's Association [source: MEMA]. That 's about 820 trips from the sun to Pluto and back.
Up Next
•Gas Prices Quiz
•Why is summer fuel more expensive than winter fuel?
•TreeHugger.com: Ethanol Fuel Basics
The United States consumes about 20 million barrels of oil products per day (bbl/d), according to the Department of Energy [source: DOE]. Of that, almost half is used for motor gasoline. The rest is