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By United States Government GAO: Government Accountability Office,eBook Formatting Team

This primer has been painstakingly edited for an optimal booklet interpreting adventure, together with an energetic desk of contents. It explains the yankee gas business.

SECTION 1 : history
How a lot of a barrel of oil is made into gasoline?
How does fuel get to the consumer?
How have gas costs replaced over time?

SECTION 2: components OF gas fee
What do shoppers pay for in a gallon of gasoline?
Crude Oil
Taxes
Refining
Distribution and Marketing

SECTION three: diversifications IN gas costs OVER TIME
What are the foremost components inflicting gas costs to alter through the years?
What determines the cost of crude oil?
World Oil Demand
World Oil Supply
How do adjustments in fuel call for relative to provide affect the price?
Can U.S. refineries produce as a lot gas as shoppers demand?
How does the USA stability gas offer and demand?
How have govt standards for exact blends of fuel affected the cost of gasoline?
Why are fuel costs typically better in the course of sure occasions of the 12 months?
How have fuel taxes contributed to alterations in gas cost over the years?
How have the mergers that happened within the petroleum within the Nineties affected festival and the cost of gasoline?

SECTION four: GEOGRAPHIC diversifications IN gas rate
Why do fuel costs differ from position to place?
How does proximity to the resource of offer affect the cost of gasoline?
How do differences within the kinds of gas used reason geographic adaptations in gas price?
How do geographic differences in taxes affect gas prices?
How does neighborhood pageant affect fuel prices?
How does pageant among name-brand and unbranded fuel affect fee?
APPENDIX I: SCOPE AND METHODOLOGY

Few issues generate extra awareness and anxiousness between American shoppers than the cost of fuel. classes of fee raises are observed through excessive degrees of media cognizance and shopper wondering concerning the explanations and affects of the cost alterations. the latest upsurge in costs is not any exception. among January three and April eleven, 2005, fuel costs elevated approximately a week, and through this time the common U.S. rate for normal unleaded fuel jumped 50 cents in line with gallon, including approximately $7.8 billion to shoppers’ overall fuel invoice, or approximately $58 for every passenger automobile within the usa. Spending billions extra on gas pinched customer budgets, leaving much less funds on hand for different purchases.

Beyond having matters over expense raises, shoppers locate it obscure how costs can fluctuate quite a bit around the state or maybe from local to local. for instance, shoppers in San Francisco paid a standard of $2.63 according to gallon in the course of the week of April eleven, 2005, whereas shoppers in Chicago paid $2.33 consistent with gallon; in Denver, $2.25; in long island, $2.19; and in Houston, $2.12. in the urban of Washington, D.C., pump costs for normal fuel various through up to 22 cents consistent with gallon one of the stations that we visited.

Over the years, those concerns were the topic of various investigations and studies. We at GAO have testified a number of occasions on comparable concerns in congressional hearings. usually studies on gas costs were technical, leaving uncomplicated questions unanswered. We ready this primer to assist enhance public figuring out of the foremost elements that effect the U.S. cost of fuel and the demanding situations dealing with the U.S. on matters on the topic of fuel provide, call for, and costs. within the primer, we current details at the components that impression the cost of fuel and, to the level attainable, why these components have constructed. particularly, we clarify how gas is made and disbursed, what shoppers pay for in a gallon of gas, why fuel costs switch through the years, and why gas costs differ from position to put. the knowledge is gifted in a question-and-answer structure and is written for a nontechnical audience.

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Motor Fuels: Understanding the Factors That Influence the Retail Price of Gasoline by United States Government GAO: Government Accountability Office,eBook Formatting Team


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