No one likes arriving at the pump to discover sky-high gas prices. If you’ve ever wondered why unleaded gas prices fall one week and rise the next, there are various factors to learn about, from the cost of crude oil to distribution costs. The following guide offers the basic breakdown of where gas prices in America originate.
The Major Factor: Crude Oil Cost
Worldwide crude oil prices affect the cost of unleaded gasoline more than any other factor. Since these prices fluctuate based on global supply and demand, oil costs often increase in response to economic growth. This price may also rise in response to shifts in the local and international supply of crude oil; thus, since U.S. oil production has surged in recent years, the nation has resisted higher gas prices more than other nations. Sometimes, the Organization of the Petroleum Exporting Countries (OPEC) impacts the price by limiting oil production.
Additional Factors: Taxes, Distribution & Marketing, Refining Costs
Whether implemented at the federal, state, or municipal level, taxes may also impact the cost of unleaded gas prices in your area. For instance, the federal excise tax is 18.30 cents per gallon, and on average, gas taxes across the nation averaged about 28.31 cents per gallon total. Distribution and marketing may also impact unleaded gas prices, as some refiners own and operate retail outlets, while independent businesses operate others.
You might also notice that gas prices change seasonally and regionally; this happens in part because there are different formulations to combat air pollution depending on the local climate. In the summertime when people drive more frequently, you may also notice gas prices surge.
For affordable gas prices in the Tripoli, WI, area, look no further than Tri-Mart BP. The 24/7 gas station offers the high-quality diesel and unleaded gas on which locals rely. While you’re fueling up, stop in the convenience store for some hot food, snacks, or beer. To learn more about fuel and other services, visit the locally-owned and -operated establishment online. If you have any questions, call an employee at (715) 564-2440.