why are gas prices so diffrent in diffrent places?

Answer 1

Its the taxes on the gas that makes gas prices different Also cost of living is a factor.

Answer 2

The reason that gas prices are different in different places and countries, depends on several things.

1. How much the oil company sold the barrel of oil to the gas station. When the cost to buy the oil goes up, the station has to charge more, to be able to cover the cost of oil.

2. Cost of living. If you live in a state where property value is not very high chances are the amount you pay for a gallon of gas is not as high as say California or New York.

3. Supply and demand. In the last few years the demand for gasoline has skyrocketed. There is becoming such a demand that the cost has to go up to try and keep the supply where it needs to be. By raising gas prices, it helps to deter some from driving a car, not too many though.

4. Taxes, in some states taxes on one gallon of gasoline is 18 cents. In others it may be only 12 cents, while some states tax up to 23 cents. These can really start to add up. For example a person who pumps 15 gallons into their car with a 15 cent state tax just paid 2.25 into taxes, for some that could have bought another gallon. The larger, the tank, the more that is going to taxes.

5. Gas station profit. When I was in college I roomed with a girl whose dad owned two gas stations, and had it explained to me that for every gallon the station only made about 3 cents at the most.

So really it is not the station that makes it impossible to survive on these high prices, it is the demand versus the supply that is making it hard. Other things such as taxes, and gas station profit that effect them too, but not as much as too many people want to drive.

Answer 3

Here in the United States the Government subsidizes gas prices so It helps to keep our prices lower . As for the prices at the pump the different gas companies set their prices daily according to the price of crude oil by the barrel and then had their other charges for refining , distribution , and overhead expenses . That is why you see the prices changing so often at the pump . World events such as the war in Iraqi and Afghanistan , terrorist threat , pending war with other factions , and the rise and fall of the stock market ,can and do affect the prices of oil as well and aid in the prices going up and down . Then you have just plain old greed , the major oil companies have been showing record high profits despite the fact that they say they are not price gouging .

Answer 4

Gas prices vary for several reasons. Taxes are probably the biggest factor in the different prices around the country. Additionally, competition among local gas stations can drive prices down. Distance from the oil refineries can also affect prices -- stations closer to the Gulf of Mexico, where many oil refineries are located, have lower gas prices due to lower transportation costs. There are also some regional factors that can affect prices.

World events, wars and weather can also raise prices. Anything that affects any part of the process, from the moment the oil is drilled, through refining and distribution to your car will result in a change in price. Military conflicts in parts of the world with lots of oil supplies can make it difficult for oil companies to drill and ship crude oil. Hurricanes have damaged offshore drilling platforms, coastal refineries and shipping ports that receive oil tankers. If a tanker itself is lost or damaged, or leaks its oil into the ocean, that will put a dent in the market as well.

Answer 5

In Florida, different counties have a different tax on gas. Different states and countries have different taxes. Then there is the expense of transporting and shipping gas. In NJ the refineries for the gas are located there so the costs are cheaper there than further away from the refineries. Then there are the prices the gas station pays for the gas which vary widely by location and date of delivery. Different shipments cost different prices to your local retailer. Supply and demand pays a part. In addition, different oil producing countries charge different prices for their gas depending upon what country they are selling it to. Russia is a prime example of that.

Answer 6

There are a lot of factors. Supply and demand is one (what's the world's price for oil this month). The cost to transport the gas from the closest refinery is another (the further away the more it costs). In addition, different states, counties and municipalities impose different taxes on fuel.

Answer 7

Gas prices are not controlled by any single factor. Supply and demand being core of the reason for the pricing. Other reasons, of course are shipping charges. ( but if point A is closer from shipper but has a higher demand, as compared to point B, which is farther, still point A will sell for higher) Cost of living is another important factor, so is the local taxes.

Answer 8

Price of gas is affected by a number of factors - taxes, cost of delivery, cost of refining, cost of additives (some areas require additional smog reducing additives), station rent. But most importantly the cost is based on the market - what you are willing to pay and what the station owner is willing to sell. If the owner primarily relies on gas for the majority of their revenue then the price tends to be higher. If they run a convenience store they may lower the price to get people into the store to buy snacks, sodas and other items.

Answer 9

Different countries or even states tax gas at different rates, also import taxes and transport taxes and the mark up a gas station owner is allowed to make all change the price for gas

Answer 10

First, are you speaking about Regions of the United States or different parts of the world?

In the US, much of the difference can be attributed to different rates of TAXATION on gas. It is very evident here in Kansas City. If I buy gas in Kansas City KANSAS it cost me $2.69 (as of today). If I go to Kansas City MISSOURI it cost me $2.65 or less. The difference is the amount of taxes imposed by each state. The tax rate is higher in Kansas than Missouri on gasoline. I am going to hazard a guess that the tax rates in other countries also change the gas prices compared to us. But, overseas it is worse than perceived. We assume when we see a sign from say London that says $6.99 (pounds) that this would be equivilent to $6.99 per gallon but it is not...it is $6.99 PER LITER! since there are 4 liters to a gallon this makes the price almost $28.00/gal!!!!!

Crazy isn't it...but that is economics for you