| Numerous forces can influence the price of | | | | located, have lower gas prices due to lower |
| gas at the pump, but fuel costs are only one | | | | transportation costs. There are also some |
| part in the vast web of global economics. Gas | | | | regional factors that can affect prices. |
| prices have an impact on other parts of the | | | | |
| economy as well. There are immediate effects | | | | World events, wars and weather can also raise |
| of rising prices - that feeling of stunned | | | | prices. Anything that affects any part of the |
| disbelief as the numbers climb and climb | | | | process, from the moment the oil is drilled, |
| while you fill your tank. There are secondary | | | | through refining and distribution to your car |
| effects as well. You might decide against a | | | | will result in a change in price. Military |
| long road trip because the gas would cost too | | | | conflicts in parts of the world with lots of |
| much. When it comes time to buy a car, you | | | | oil supplies can make it difficult for oil |
| might decide against a gas-guzzling SUV and | | | | companies to drill and ship crude oil. |
| find something with better mileage instead. | | | | Hurricanes have damaged offshore drilling |
| Price increases generally occur when the | | | | platforms, coastal refineries and shipping |
| world crude-oil market tightens and lowers | | | | ports that receive oil tankers. If a tanker |
| inventories. Also, growing demand can | | | | itself is lost or damaged, or leaks its oil |
| sometimes outpace refinery capacity. | | | | into the ocean, that will put a dent in the |
| | | | market as well. |
| Gas prices also vary from state to state for | | | | |
| several reasons. Taxes are probably the | | | | In some regions of the country, gasoline is |
| biggest factor in the different prices around | | | | required to meet higher environmental |
| the country. Additionally, competition among | | | | standards in order to reduce the amount of |
| local gas stations can drive prices down. | | | | smog created by burning gasoline. Producing |
| Distance from the oil refineries can also | | | | this cleaner-burning gasoline can cause |
| affect prices -- stations closer to the Gulf | | | | problems in refining, distribution and |
| of Mexico, where many oil refineries are | | | | storage, which increases the cost of gas. |