Thread: Gas prices.
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Re: Gas prices.
Old August 16th, 2003, 11:26 AM   #5
GTS Dean
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Re: Gas prices.

Oxygenated and/or "clean" fuels cost more. The refiners are also being required to install de-sulfurizing processes for motor fuels that may cost hudreds of millions of dollars, and take 5 or more years from engineering, to permitting, to construction. The EPA is to blame here.

Federal gas tax is 18.4 cents/gal (and not enough to keep up with conditions or inflation). Most states average 20 cents/gal to pay full-ticket for building & maintaining their non-federally funded systems. A portion of the state tax is used to leverage up to 80% or 90% of federal money on US Highway, Interstate and Federal Aid Primary or Urban (FAP, U) routes.

I often notice that the retail price split between regular, plus and premium grades is about 10 cents/gal. The true COST difference is on the order of 2-3 cents/gal. The prices jump faster than they drop in part because they get billed for a 7000 gallon transport load all at once, but it may take 2-3 weeks for some retailers to sell it off.
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