Factors Affecting Gasoline Prices

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The pricing of gasoline is a combination of a number of different factors. One of the most important factors is the price of crude oil in the world market. Crude oil is the primary raw material from where gasoline is being derived from. In fact, gasoline is a major product of crude oil. That is why crude oil accounts for more than half of the price tag of gasoline sold in gas stations. If the price of crude oil goes up, the price of gasoline also goes up.

Another factor that affects gas prices is the refining costs. Different states require certain refining regulations to be followed. This is to follow the certain standards in refining gasoline to make them acceptable for use locally. Certain refining additions to the process would likely add up to the retail price of gas sold in different states.

Taxes are also considered a prime factor in setting the price tag for gasoline at retail gas stations. Different areas in the country follow different tax standards for gasoline. Aside from the federal taxes, states also have their own set of taxes being placed on petroleum products. The higher the taxes placed on gasoline, the higher its retail price eventually becomes. The difference in state, federal and local taxes is also one of the reasons why different states have different gasoline prices.

Dealing with the high gasoline prices for the car owner does not depend on these factors however. It has more to deal with trying to get the most out of every drop. And this usually means that car owners try to get the best mileage out of their vehicles when using them.

Good mileage does not usually mean having a new car. It also has a lot to do with a number of factors. For one, driving habits can also affect a car’s mileage. Aggressive driving can lay waste to gasoline use and reduce a car’s mileage quickly. Drivers who are prone to sudden and quick accelerations and fond of hard braking can put some strain into a car’s performance after awhile.

Another means of improving mileage that car owners can actually do is keeping up with their car’s scheduled maintenance. A car’s scheduled maintenance process would enable the car to get much needed repairs and maintenance work even before things get worse. This can help maintain a car’s good mileage. The longer the car enjoys better mileage the better chance a car owner would have in dealing with the rising gasoline prices.

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