What do you really pay for when you buy gas?

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Portsmouth, Virginia (WAVY) – As gas prices continue their march to record territory, the U.S. Energy Information Administration is breaking down what is probably the cost of what you pay for the pump.

Crude oil prices are a major factor in what you see on signs near gas stations, according to them “Upgrading Gasoline and Diesel.”

However, when analyzing the average retail price of 2011-2020 in the US at $ 2.85 per gallon, crude oil accounted for just over half of the total cost.

With the ban on Russian fuel and the invasion of Ukraine, the price of a gallon is constantly moving north how oil prices reflect the geopolitical climate.

“Most of the world’s crude oil is in regions that have historically been prone to political turmoil,” the EIA analysis shows.

However, in addition to the price of oil, the price is greatly affected by the cost of doing business and taxes.

In the 2011-2020 analysis, federal and state taxes accounted for 16% of spending. The federal gas tax is currently 18 cents a gallon. If you are in Hampton Roads, Virginia, you pay an additional 26 cents in addition to the federal tax. If you are in North Carolina, you pay 36 cents.

Refining costs and profits “fluctuate seasonally and depending on regions in the United States, in part because of the different gasoline stocks needed to reduce air pollution in different parts of the country,” the EIA says.

Finally, distribution and marketing include profits for those who help bring gas to market, and the gas station owner.



What do you really pay for when you buy gas?

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