Of the total cost of gasoline, 65 percent comes from the price of crude oil. Of the remainder, 15 percent comes from refining costs and profits, 8 percent comes from distribution, marketing, retail costs, and profits, and 12 percent comes from taxes. The cost of crude oil, and thus the price at the pump, is influenced by a number of outside factors.
NASA via Reuters
Hurricane Isaac’s path forced refineries in the area to shut down in hopes of avoiding damage from the storm.
Danny Johnston/Associated Press
Severe drought in much of the country will add about 5 cents to the price of gas as corn prices rise, affecting the cost of the ethanol blended into fuel.
Office of the Supreme Leader via Associated Press
Political volatility in Iran and Israel, and other parts of the Middle East, adds to the gas price if oil supplies are endangered or cut off because of the tensions.
The Richmond Chevron fire in California and other recent refinery fires could cause price increases until those resources are reopened.