
7.5% Earnings* Source: Average of gasoline components from January through March 2008 as reported by EIA. | ![]() |
WHAT INFLUENCES
PRICES?
Gasoline prices are driven by the realities of global supply and demand for crude oil. There are also costs associated with refining, distributing and delivering gasoline that factor into the price you pay at the pump. When you adjust for inflation, today's pump price is actually lower than the peak retail prices of 1981. The relatively lower costs over the past two decades can be attributed largely to lower crude oil costs. Manufacturing, distribution, and marketing costs have also declined. Only taxes have increased. |
HOW
MUCH HAS THE OIL AND NATURAL GAS INDUSTRY INVESTED IN ENVIRONMENTAL
IMPROVEMENT?
The oil industry has spent an estimated $89 billion since 1993 to strengthen its environmental performance. This amounts to $308 for every man, woman, and child in the United States. While the environmental benefit of this investment is clear in our nation's ever-improving air quality, there has been a cost. Many refineries have been forced to close because they could not afford to meet more stringent government regulations. Today, approximately 150 refineries work to meet America's growing demand for gasoline, compared to more than 300 in 1980. ![]() | STATE AND FEDERAL TAX TOTALS- While the Average State Tax is 28.6, many states have significantly higher state+federal tax totals. ![]() |
CLEANER FUEL MEANS CLEANER AIR
The average new car on the road today runs 97 percent cleaner than the average car built in 1970, thanks to a combination of cleaner gasoline and more efficient engines. As a result - although there are more Americans driving more miles in more cars than ever before - automobile-related emissions are down 41 percent since 1970. ![]() | ARE
OIL COMPANY PROFITS OUT OF LINE?
Oil and natural gas industry profits are right in line with the average for all industries. Because gasoline is so important to everyday life, some folks get nervous when prices go up and raise allegations of price gouging by oil companies. But, over the years, more than 30 government reports have confirmed that gasoline pricing is driven by legitimate market forces. ![]() |
GASOLINE PRICES ARE LINKED TO CRUDE OIL PRICES
The major components of gasoline prices are the cost of crude oil to refiners, federal and state taxes, and the cost to manufacture, distribute, and market gasoline. Gasoline prices generally reflect price trends for crude oil. | HOW DO LOCAL
ENVIRONMENTAL MANDATES AFFECT THE SUPPLY OF GASOLINE? ![]() |