| Numerous forces can influence the price of gas at | | | | to the Gulf of Mexico, where many oil refineries |
| the pump, but fuel costs are only one part in the | | | | are located, have lower gas prices due to lower |
| vast web of global economics. Gas prices have an | | | | transportation costs. There are also some regional |
| impact on other parts of the economy as well. | | | | factors that can affect prices. |
| There are immediate effects of rising prices - | | | | World events, wars and weather can also raise |
| that feeling of stunned disbelief as the numbers | | | | prices. Anything that affects any part of the |
| climb and climb while you fill your tank. There are | | | | process, from the moment the oil is drilled, |
| secondary effects as well. You might decide | | | | through refining and distribution to your car will |
| against a long road trip because the gas would | | | | result in a change in price. Military conflicts in parts |
| cost too much. When it comes time to buy a car, | | | | of the world with lots of oil supplies can make it |
| you might decide against a gas-guzzling SUV and | | | | difficult for oil companies to drill and ship crude oil. |
| find something with better mileage instead. Price | | | | Hurricanes have damaged offshore drilling |
| increases generally occur when the world crude-oil | | | | platforms, coastal refineries and shipping ports |
| market tightens and lowers inventories. Also, | | | | that receive oil tankers. If a tanker itself is lost or |
| growing demand can sometimes outpace refinery | | | | damaged, or leaks its oil into the ocean, that will |
| capacity. | | | | put a dent in the market as well. |
| Gas prices also vary from state to state for | | | | In some regions of the country, gasoline is |
| several reasons. Taxes are probably the biggest | | | | required to meet higher environmental standards |
| factor in the different prices around the country. | | | | in order to reduce the amount of smog created |
| Additionally, competition among local gas stations | | | | by burning gasoline. Producing this cleaner-burning |
| can drive prices down. Distance from the oil | | | | gasoline can cause problems in refining, distribution |
| refineries can also affect prices -- stations closer | | | | and storage, which increases the cost of gas. |