The Price of Oil Is the Main Driver in Gas Prices

As recently as 19 98, gas was just a dollar six per gallon. That price is dwarfed by the prices seen at the pump in july of two thousand eight. The cost of oil accounts for 55 % of what you pay at the pump. A state's location within the us also plays a huge role in determining fuel costs. States that are closer to refineries and pipe lines, which are clustered in the south, have lower gas transportation costs and thus pay less than those states that are farther away. Many industrialized nations tax their gas at a much higher rate than the us.