Gas Prices: Why so High? by Scott Eberle December 8, 2006

Many people know that gas prices are high, but do they know why? Do you know where the money goes when you pay for your gas? Who gets a share, or how much money is used to buy the oil needed to make the gas? Gasoline is like the blood of America; it makes our economy run. Our personal vehicles alone consume about 65 billion gallons of gasoline and diesel fuel every year.
The price of gas is affected by many factors and not just the price of crude oil, like the media tries to make people believe. The price for a barrel of crude oil is actually 59% of the price of gas that you pay at the pump. A barrel of crude oil that is 42 gallons, will only yield about 19 to 20 gallons of gasoline. The price of refining the oil is 10% of the price at the pump. Gas must be transported in crude oil form to the refineries, where it is then shipped to the distribution points, and then finally it is sent to the gas stations. 11% of the price of gas is for the transporting cost alone; this is why gas is cheaper on the Gulf of Mexico and becomes more expensive as you get farther away from the refineries. 20% of the gas price is taxes; this includes local and federal taxes. Station mark up also contributes to the price, because the station can add anywhere from a few cents to a nickel or dime per gallon. World events such as weather or wars can affect the gas prices if they interfere with any part of the gas process.
There are many ways to conserve gas and help with the global crisis. The most common ways to keep your mileage down is by keeping your car in good running condition, as well as keeping your tires properly inflated. Some other helpful ways are filling up with gas in the morning, because cooler gas is more compact, allowing you to get a few drops more for you money. Extreme acceleration can waste gas and using your windows instead of air conditioning while less than 40 mph can help lower your gas mileage. When buying a vehicle, think about what you will use the car for because a compact car might be a better choice than a SUV. The engine is an important detail when purchasing an automobile. A smaller engine requires less gasoline, but an underpowered car uses more fuel than a car with a sufficient engine. In addition, if driven correctly a manual transmission can get up to 8% better mileage in the city than an automatic transmission. To really avoid the towering gas prices, fuel injected cars have better fuel usage than cars with carburetors because fuel injectors measure fuel more precisely.