The People of America's Oil and Natural Gas Indusry

What You Pay for at the Pump

Jane Van Ryan

Jane Van Ryan
Posted November 30, 2010

If you drove during the Thanksgiving Day holiday, you probably noticed that the price of gasoline has increased. Since September, gas prices have climbed several cents per gallon.

Why? API's Monthly Statistical Report for October shows that demand for oil products has climbed, signaling a modest improvement in the economy. As demand rises, it puts upward pressure on the cost of the raw material used to produce gasoline--crude oil.

In the first eight months of 2010, crude oil alone made up 67 percent of the price at the gasoline pump. Refining the crude oil into gasoline and retailing added another 18 percent to the retail price of gasoline. And taxes accounted for the remaining 15 percent.