The Price of Gasoline Essay -- essays research papers

The terms of GasolineWhat you atomic number 18 paying for when you get a gallon of flatulence? Most people complain about the high apostrophize of gasoline, hardly few understand how the price is calculated. Many people think this speak to is for gasoline only, but many other factors determine what you pay at the inwardnesss.Gasoline is a mixture of the lighter liquid hydrocarbons, and intentiond primary(prenominal)ly as a fuel for internal-combustion engines Microsoft Encarta, 2005). Crude embrocate accounts for nearly 17 percent of the energy consumed in the United States. Gasoline is one of the main products developed from gross(a) oil in the United States. The primary use for gasoline is in automobiles and light trucks. Fuel produced all year round, and is delivered from oil refineries through pipelines to a massive distribution chain serving 167,000 sell stations throughout the United States (EIA Brochures, 2004).The prices paid by consumers at the pump reflect the cost to produce and deliver gasoline to consumers. Included is the cost of crude oil to refiners, refinery- processing costs, marketing and distribution costs, and finally the retail station costs and taxes. Approximately 27 percent of the cost of a gallon of gasoline is federal, state, and local taxes. Another 14 percent is a combination of distribution, marketing, and retail dealer costs and loot. Refining costs and profits account for about 15 percent of the retail price of gasoline. This contribution varies from region to region due to the incompatible formulations required in different parts of the country (EIA Brochures, 2004) .The average retail price for gasoline tends to be higher in certain States or regions than in others. According to the faculty Information Administration (EIA), other factors contribute to regional and local differences in gasoline prices aside from taxes. Special gasolines are required in some(a) areas of the country. Environmental programs, aimed at reducing carbon monoxide, smog, and air toxins, require oxygenated reformulated, and low-volatility (evaporates more than slowly) gasoline, which comes at a much higher price (EIA Brochures, 2004).The proximity of refineries to crude oil supplies can be a factor, as well as shipping costs from the refinery to market. In addition, the areas farthest from the Gulf Coast are the source of nearly half of the gasoline produced in the United States, and th... ...ors that go into that price. Whether its the taxes charged by federal state, and/or local government, the criterion of competition in the region, the regions proximity to a current gasoline supply or even emissions regulations. The price of the fuel we buy is carefully calculated and is subject to many variables. Informed consumers should understand these factors, and life them in mind each time they fill their tanks.Referencecalcium aught Commission, Media and public communications office, (1994-2008), pageupdated 03/17 /2007 Retrieved 05/19/2007 from http///www.energy.ca.gov/gasoline_q- and-a.htmlEnergy Information Administration, (2003) California gasoline price study preliminary findings, Retrieved 5/04/2007 from Http//www.eia.doe.gov/pub/oil_gas/petroleum/feature_articles/2003/cagasoline/cagasoline.pdfSpecialized Information Services, A terra firma on gasoline prices, publication number DOE/EIA-X040, (released June 2007), Retrieved 5/04/2007 from Http//www.eia.doe.gov/neic/brochure/oil_gas/primer/primer.htmSpeir, Robert A, Investigation into the current run-up in gasoline, (2004-2008) Retrieved 5/18/2007 from Http//www.iic-inc.com/curr.shtml