
If you’ve noticed prices move up and down at the gas station, you may have wondered what causes gas prices to fluctuate. Or, maybe you’ve noticed higher or lower gas prices in other states during a road trip. From location to tax rates, here’s a look at some of the factors that may affect the price of gas.
Price of Crude Oil
The biggest contributor to the price of gas is the cost of crude oil, says the U.S. Energy Information Administration (EIA). Also known as fossil fuel, crude oil is the liquid that is removed from the ground and sent to refineries to be made into gasoline.
Crude oil prices are based largely upon supply and demand. Therefore, when crude oil production rises, prices may decline, but costs may rise when production declines. Economic conditions play a role in crude oil prices, the EIA says. When the economy is doing well, demand for raw materials such as crude oil tends to rise, while prices fall.
Taxes
State and federal taxes are built into the price of a gallon of gas, says Energy.gov. While the same federal tax rate is charged at every gas station in the U.S., each state sets its own tax rates. Some states charge sales tax, while others may include other costs, such as environmental fees, in the price of a gallon of gas.
Read more HERE
Reno Tahoe Auto Group
3355 Kietzke Ln.
Reno, NV 89502
775-329-0303
Reno Tahoe Auto Group








