How Do Gas Prices Work?

Gas Prices. When they’re good, who do we thank? When they’re bad, who do we blame? While it would be nice if the world was this simple, the actuality of what influences gas prices in the US and the world is a little more complicated than just one person making decisions. Why in the world are gas prices so expensive?

In large part, gas prices are determined by the laws of supply and demand. Roughly 50% of the price of retail gasoline is influenced by the price of crude oil, but refining costs, marketing costs, taxes, and distribution costs also contribute. With that many slices of the pie affecting gas prices, there usually isn’t one root cause - even though politically, we sure like to think there is.

Media:

Impact Prelude by Kevin MacLeod is licensed under a Creative Commons Attribution 4.0 license. https://creativecommons.org/licenses/by/4.0/
Source: http://incompetech.com/music/royalty-free/index.html?isrc=USUAN1100617
Artist: http://incompetech.com/

Dark Fog by Kevin MacLeod is licensed under a Creative Commons Attribution 4.0 license. https://creativecommons.org/licenses/by/4.0/
Source: http://incompetech.com/music/royalty-free/index.html?isrc=USUAN1300031
Artist: http://incompetech.com/

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Видео How Do Gas Prices Work? канала Concerning Reality