Factors Influencing Prices at Retail Outlets
The price per gallon of gas at the pump is determined by various complicated factors and a whole range of issues which includes - the demand and supply of crude oil along with factors like inflation, local taxes and changes in currency valuations. A typical breakup of the per gallon gas price would be as follows:
Price of crude oil - 68%
Federal and state taxes - 14%
Refining costs - 10%
Distribution and marketing costs - 5%
Profit margins - 3%
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