Why are gas prices so high?

Why gas prices are so high today? Here are some answers to why!

Question: Why are retail gasoline prices so high?

EIA analysis of the oil market indicates the cost of crude oil as a major contribution to the record high price of gasoline, which we now face.

The price of crude oil now accounts for about 73% of the pump price of gasoline. World crude oil prices are at record highs due mainly to high demand for oil around the world in relation to supply. Other factors include political developments and conflicts in some major oil producing regions, as well as other factors. In addition, the price of gasoline in the United States, usually increase during the spring and summer because of the seasonal increase in demand and additional costs for summer-grade production of "reformulated" gasoline needed to achieve air quality standards in many urban areas.

Question: Can I tell which country the gasoline at my local station comes from?

Energy Information Administration does not collect data on the source of gasoline sold in retail outlets. It is difficult to say where gasoline at local stations originated. At local stations, the company can sell gasoline, which was not produced by its own refineries. Gasoline from different refineries owned by different companies, often in combination to transport by pipeline. Many companies can buy gasoline at the same terminal. The source of crude oil used in the refinery fluctuates daily. Most oil refiners use a combination of internal and external sources based oils "cost and availability".

Question: How many retail gasoline stations are there in the U.S.?

There are approximately 167,000 retail gasoline outlets in the United States.

Question: How many gallons of gasoline makes a barrel of crude oil?

One barrel (42 gallons) of crude oil, when refined, yields approximately 19.6 gallons of finished motor gasoline. The rest of the barrel yields distillate fuel oil, residual fuel oil, jet fuel and other goods.

Question: How much tax do we pay on a gallon of gasoline?

The Federal gasoline tax is 18.4 cents per gallon and the average State tax is 21.4 cents per gallon.

Q: What products and use of oil?

The most common petroleum products are energy products: gasoline, heating oil and diesel fuel. Other petroleum products are: ink, crayons, bubble gum, dishwashing liquids, deodorant, eyeglasses, records, tires, ammonia, and heart valves.

Barrel of oil yield of petroleum products (as a percentage of the barrel):
47% gasoline for use in cars
23% of heating oil and diesel fuel
18% of other products, which includes petrochemical feedstock products derived from oil mainly for the production of chemicals, synthetic rubber and plastics
10% of jet fuel
4% propane
3% asphalt
(As a percentage equal to more than 100 because of about 5% of the processing for details.)

Question: How much gasoline does the United States consume per year?

In 2007, the United States consumed over 142 billion gallons of gasoline.

Kenny B Port writes about gasoline trading. Learn more about gas futures and the latest gas prices