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Tuesday, April 26, 2011

The Problem of Expensive Gasoline

Gasoline is produced in limited supplies due to capacity limitations of existing refineries. This adds cost to the base price of the oil. Approximately 26 percent of gas refined from oil comes from refineries while additional gasoline is imported. Extra costs are then added to gas from government revenue operations and business related costs. Since oil is priced in dollars, a depreciation in the value of the dollar can also lead to higher gas prices.

Complete article link: http://www.helium.com/items/2143049-why-gas-costs-so-much

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