There are obviously state taxes and supply/demand within urban centers to contend with—but is there a basic formula or sorts that gets you to the dollar amount you see per gallon?
In: 5
The equation for the price of gas is the same for any commodity. The cost the fuel is sold to the gas station + taxes + expenses + profit
“According to the U.S. Energy Information Administration, the price of crude oil accounts for about 67 percent of the per-gallon gas price. Another 7 percent is based on the price to refine crude. Distribution and marketing account for 11 percent, and the remaining 15 percent comes from taxes.”
Transportation costs makes a lot of the difference in gas prices from town to town. The further you have to transport the gas to get to the station, the more expensive it is.
Gas taxes nominally are used to pay for the roads, intersections, enforcement, etc
The gas stations themselves actually make more money selling snacks, lottery tickets, Cigarettes and booze (where legal) than from the gas.
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