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[Institution’s Name]
Essay on Gas Prices
Gasoline is one of the most important products refined from crude oil, accounts for just about 17 percent of the energy consumed in the United States. The most important use for gasoline is in automobiles and light trucks. Gasoline in addition fuels boats, recreational vehicles, and various farm and other equipment. At the same time as gasoline is produced year-round, extra volumes are made in time for the summer driving period. Gasoline is delivered from oil refineries for the most part through pipelines to a massive distribution chain serving 168,987 retail gasoline stations throughout the United States. There are three most important grades of gasoline: standard, mid-grade, and premium. Each grade has a unlike octane level. Price levels fluctuate by grade, but the price differential between grades is generally steady. The cost to create and deliver gasoline to consumers includes the cost of crude oil to refiners, refinery processing costs, marketing and distribution costs, and finally the retail station costs and taxes. The prices paid by consumers at the pump be a sign of these costs, as well as the profits (and every now and then losses) of refiners, marketers, distributors, and retail station owners. Federal, State, and local taxes are a large component of the retail price of gasoline.
Taxes (not counting county and local taxes) account for just about 23 percent of the cost of a gallon of gasoline. Within this state average, Federal excise taxes are 18.4 cents per gallon and State excise taxes average about 21 cents per gallon. Moreover, eleven States levy additional State sales and additional taxes, some of which are applied to the Federal and State cut out taxes. Further local county and city taxes can have a momentous impact on the price of gasoline...........
