No one likes arriving at the pump to discover sky-high gas prices. If you’ve ever wondered why unleaded gas prices fall one week and rise the next, there are various factors to learn about, from the cost of crude oil to distribution costs. Here are just some of the factors that converge to affect how much a gallon of gas costs.

Crude Oil

Gasoline comes from crude oil. Crude must be converted into fuel for cars so you can fill your tank with unleaded gas at the pump. While there has been a major move toward domestic crude oil production in recent years, most of it is imported, and the prices are set by the global marketplace, mainly by the forces of supply and demand and, of course, profit.

Refining

The raw crude is heated during the first step of the refining process until most of it vaporizes into gas. Next, vapors and liquids flow into an atmospheric distillation tower, where they separate into different streams based on boiling point. 

Those with heavier streams have higher boiling points and settle to the bottom of the tower as liquids, while lighter streams, including gas and kerosene, rise to the top as gases. Diesel has a mid-range boiling point, so it settles in the middle of the tower. This is an involved process that adds anywhere from 40 to 70 cents per gallon to unleaded gas costs.

Marketing and Distribution

Every step of gasoline production, from the harvesting of crude oil to the filling of the pumps at your favorite gas station, costs money. Two of the biggest contributors are marketing, which includes advertising and promoting specific fuel brands, and distribution, which requires complex logistics and careful planning to ensure every filling station has full fuel pumps. All of these costs are figured into the per-gallon price tag.

Taxes

You are taxed at both the federal and state levels for gas. The 2022 federal rate is 18.3 cents a gallon. State taxes vary, but in Wisconsin, it's about 31 additional cents. This can add up quickly, especially for larger, less fuel-efficient vehicles.

These are among the biggest considerations that impact gas prices. When you need unleaded gas in the Tripoli, WI, area, stop by Tri-Mart BP. Since 1992, they have been providing fuel to customers 24 hours a day. They also feature a full selection of snacks, hot food, soft drinks, and beer. Call (715) 564-2440 for pricing information or visit them online to explore their services.