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Wednesday, October 28, 2009

What Is Affecting The Gasoline Prices

By Wayne Truter

The rising gasoline prices has everyone concerned about the future. Of course, with gasoline being the fuel of the most common form of transportation today, who would not be? And since gasoline is still a major fuel used by most cars in the world, there is nothing that can be done except deal with the changes. People may not have that much of an influence in lowering the current gas prices especially with the great demand for gasoline elsewhere in the world. The most effective means would be making a collective effort of minimizing gasoline use as well as trying to get more out of every gallon of gas as possible.

One of the main factors that affect a car's mileage is how you drive. Driving manners and habits have a great deal to do with car mileage. For example, a driver prone to sudden accelerations and heavy braking can use up quite an amount of gas per distance traveled. This is because quick accelerations and sudden braking can use up more fuel since it puts the vehicle into sudden strains. In fact, aggressive driving can actually affect fuel economy by as much as 30 percent in highways and about 5 percent in town and city inroads.

Another factor that affects gas prices is the refining costs. Different states require certain refining regulations to be followed. This is to follow the certain standards in refining gasoline to make them acceptable for use locally. Certain refining additions to the process would likely add up to the retail price of gas sold in different states.

Taxes are also considered a prime factor in setting the price tag for gasoline at retail gas stations. Different areas in the country follow different tax standards for gasoline. Aside from the federal taxes, states also have their own set of taxes being placed on petroleum products. The higher the taxes placed on gasoline, the higher its retail price eventually becomes. The difference in state, federal and local taxes is also one of the reaosns why different states have different gasoline prices.

Dealing with the high gasoline prices for the car owner does not depend on these factors however. It has more to deal with trying to get the most out of every drop. And this usually means that car owners try to get the best mileage out of their vehicles when using them.

The type of gasoline being used in a car can also affect its mileage. There are certain variations of gasoline fuels that offer lesser energy than others. Using reformulated gasoline, for instance, may cause some changes in fuel economy due to their lesser energy content. Not only is the type affecting the gasoline's energy content, seasons may also have some effect. The reason for this might be behind the refining process. But generally, gasoline products sold during the summer usually have a higher energy content rating than gasoline products being sold during the winter.

Taxes Gasoline prices may also be affected by taxes both local and countrywide. The difference in the taxes set for gasoline in different areas account also for other places having cheaper gasoline than in other areas. On average, taxes in general account for about ten percent of the price set for gasoline.With The rising cost in fuel prices I think car insurers should bring down the prices for insurance! - 21392

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