Ever wondered why gas is so expensive? We'll tell you why.
Gas prices are right up there on our "Banes of Existence" list, right alongside Ebola and Shrimp-Mayonnaise Doritos, so we did a little research to find out why they are the incorrigible scourge they are. And in the process, we learned something ... so take that, Mom.
Average Price of Gas: $3.97
Distribution marketing costs and profit: $.104 (2.6 percent)
- Everything from distribution to franchise fees, rent, advertising and all other general costs associated with making sure you receive the sweet, sweet crude for your H3.
Crude oil cost: $2.550 (64 precent)
- Petroleum, or crude oil, is the black lifeblood pumping through your vehicle’s tube and pistons. Each day, the price of crude fluctuates based on the market price of Alaskan North Slope Crude … that and whether Vladimir Putin decides to invade another country.
Refinery cost and profit: $.446 (11.2 percent)
- The costs associated with the refining and production processes of crude oil including adding oxygenate additives, shipment and storage, and covering those vexing oil-spill fees. Damn you Deep Horizon.
State underground storage tank fee: $.020 (.5 percent)
- The state charges close to 2 cents a gallon to store the large amounts of oil necessary to allow the American dream to prosper.
State and local sales tax: $.086 (2.2 percent)
- The government never hesitates to take a little off the top. In the case of gasoline, the real fun starts when the excise taxes kick in.
State excise tax: $.507 (12.8 percent)
- Excise tax is usually levied against purchases such as gasoline, alcohol, cigarettes, tires, etc. Since this tax isn’t listed out like sales tax, politicians prefer implementing it to raise money because consumers don’t see the “hidden” tax.
Federal excise tax: $.184 (4.6 percent)
- Uncle Sam rears his ugly head again, taking 18 cents per gallon of tax. How else would it finance borrowing more money?
BY THE NUMBERS
756 : Gallons of gasoline are consumed daily in the United States ... in millions
3: Rank of United States as a world producer of oil barrels per day
8,453,000: Barrels of oil produced per day in the United States
10,900,000: Barrels of oil produced daily in Russia making it the No. 1 oil-producing country in the world
2: Number of barrels produced daily in Panama making it the lowest producer of oil in the world