Why Do Gas Prices Fluctuate?

National Reserve? Oil Barrels? Fluctuating Oxygen Supplements? GAS PRICES EXPLAINED Pick any minute of the day, and you'll find a vehicle in motion. America runs on gasoline, and we all complain frequently about the constantly fluctuating prices. Just what causes those changes? Let's take a look at what determines how much we pay at the pump. GAS PRICES by the Numbers $3.45 for a Texans pay about New Yorkers pay around Ohioans pay about gallon of gas was a steal in early 2011. $3.55 for gas. $3.15 per gallon. $3 a gallon. Gas prices in California are Gas is hovering around ABOUT $3.90. $4 S4 AS OF LATE 2011. 1 WHAT DETERMINES the Price of Gas cost and profits to % refine crude oil distribution of 10% gas, profits to gas stations, and marketing 14% OIL taxes 68% cost of crude oil [2] %24 ADD IN THE COST f Doing Business Each U.S. REGION requires a different gas formulation. The cost of GAS REFINING varies BY REGION. COSTS of OTHER INGREDIENTS need to be considered, like ETHANOL. LET'S TALK Crude Oil Crude oil prices vary by region and season. Why? The easy answer is supply and demand. On the SUPPLY side: On the DEMAND side: Globally, oil is plentiful. Cars get better gas mileage. OPEC – the Organization of the Petroleum and Exporting Countries - produced 43% of world's crude oil in 2010 and controls prices by Americans drive less due to lack of money and jobs. JOIL selting upper-production limits for its members. [2] Ethanol US. refiners have huge stockpiles of oil. accounts for 9% of gas, Gasoline prices follow the rise and fall in oil prices. [3] which reduces the demand for crude oil. [3] DON'T FORGET About Taxes! 18.4 CENTS/ GALLON (4) FEDERAL EXCISE TAXES 27 CENTS/ C GALLON (5) ABOUT I STATE EXCISE TAXES = County AND city LEVY TAXES VARY. WHAT ABOUT the National Reserve? ---------- - Started in 1975 after oil supplies were cut off to the U.S. during the 1973-1974 oil embargo. [6] The national reserve is NATIONAL RESERVE The national reserve, an emergency fuel store of oil maintained or Strategic Petroleum Reserve, has enough oil to "power" the U.S. for 34 days. (7) by the Department of Energy. As of October 2011, the national reserve has 695.9 MILLION barrels in reserve. [8] FUEL Supplements? SUPPLEMENTAL HYDROGEN systems atomize gasoline molecules to efficiently bum gas. (9) After the initial investment of between $300 AND $1,000 in a hydrogen generator for your vehicle, gas costs will go down while mileage goes up. [10] ETHANOL is derived from com and blended in fuel. [3) Without ethanol, gas prices would be higher. Gas with ethanol reduces the cost of gas by 6 CENTS TO 9 CENTS, according to the American Coalition for Ethanol. (11] A LOOK BACK at 2008 In 2008, the demand for gasoline and diesel fuel erupted at record levels. Pump price for regular gas was In fall 2008, crude oil prices fell due to lessened global demand and the weakening economy. [3] $2/GALLON through early 2009. [12] Crude oil and gas prices jumped in 2010 and 2011 because of political events in the Middle East and North Africa, where one third of the world's oil production takes place. [13] WANT to Save? Find out how to save on fuel with the DOE Fuel Cost calculator at fueleconomy.gov. [4) Sources 1http://wwww.fueleconomy gov/fegigasprices/states/index shtml 12Ribwww.eia httoreascn co explalhedondexCimpa ne actors atfectingonces 141 hittp://www.gaspricewatch.com/usgastaxes.asp E http://wwww.taxfoundatjon.org/taxdata/show/26079.html 6 http://fossil.energy.gov/programs/reserves/spr/ ZL.http//fossil energy goy/broğramstockmaRTS OA5/us-oil-reserves-fell-by-6-7-million-barr 08/31/gas [8ihttp://www 9http://www.fuelçellcompanies.net/supplemental-hydrogen-fuel-system-for-hybrid-vehicles 10) http://www.hydrogencarsnow.com/hydrogen-geperators-cars.htm l http://one thanol.org090 Phpnew gas prices/index.htm 131 http://205,254,135.7/forecasts/ieo/ 14 http://gasbuddy.com httb://fueleconomy.gov/