The price of crude oil is determined by global supply and demand. In recent years, worldwide demand for crude oil has increased, and at times caused global oil prices to rise.
Crude oil is the single-largest factor in determining the price of gasoline at the pump in the United States. According to the U.S. Energy Information Administration the price of crude oil makes up approximately 70 percent of the price of a gallon of gasoline.
Combined federal and state taxes account for about 14 percent of the average price of gasoline, marketing and distribution costs account for 10 percent, and the remaining 5 percent covers the costs of refining.
EIA chart on what determines the price of gasoline.
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