Why Gasoline Prices Refuse to Slide

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%

Oil price again flirting with $100 per barrel

Oil prices climbed to near $100 per barrel Tuesday on encouraging news about the U.S. economy.
Benchmark crude rose $1.23 to end the day at $99.37 per barrel in New York. The benchmark price hasn't been that high since July 26. Brent crude, which is used to price many foreign oil varieties, climbed 50 cents to finish at $112.39 per barrel in London.

Prices jumped after the Commerce Department said that retail sales rose in October for the fifth straight month. Consumer spending increased for electronics, appliances, hardware and building supplies. Sales also rose at grocery stores, bars and restaurants and health care stores.