Gas Prices Are Hitting Record Highs. Here’s What Goes Into The Price You Pay At The Pump
For Immediate Release:May 19, 2022Media Contact:George Brown(740) 587-0410
Gas Prices Are Hitting Record Highs. Here’s What Goes Into The Price You Pay At The Pump
Granville, OH - Gas prices in Ohio and around the country are hitting record highs due to soaring demand and Russian aggression in Ukraine. Have you ever wondered just what determines the price you pay at the pump though?The Ohio Oil and Gas Energy Education Program has released a new video explaining how the price of a gallon of gas is determined and the costs that go into producing it. The video can be downloaded here, and viewed on Youtube here.There are four main factors that account for the price of a gallon of gas:1. The price of crude oil, which accounts for 61% of the total cost.2. Refining costs, which make up 14% of the total cost.3. Taxes represent 14% of the cost as well. The federal gas tax is $.18 a gallon and the Ohio state tax is $.39 a gallon4. Distribution and marketing charges make up the remaining 11% of the cost.“Market forces, not individual producers of natural gas and crude oil, determine the price of gas. Companies are price takers, not price makers,” said George Brown, Executive Director of the Ohio Oil and Gas Energy Education Program. “There are things we can do to get the price of a gallon of gas down and ensure energy prices remain stable and affordable in the future though. Namely increase production and permitting here in Ohio and build more pipelines to transport products to and from refineries.”[embed]https://youtu.be/zIslg-EMXTU[/embed]About OOGEEP: The Ohio Oil and Gas Energy Education Program (OOGEEP) is a non-profit statewide education and public outreach program. Created in 1998, OOGEEP provides a variety of programs throughout the State of Ohio on behalf of Ohio’s natural gas and crude oil producers. The primary goal of these programs is to educate Ohio’s consumers and leaders by focusing on industry research, teacher workshops, scholarships, science fair, firefighter training, career and workforce development, landowner and guest speaker programs. Engage with us via oogeep.org, like us on Facebook and follow us on Twitter, Instagram and LinkedIn.