That includes rapid price increases in response to crude oil shortages caused by the Arab oil embargo in 1973, the Iranian revolution in 1978, the Iran-Iraq war in 1980 and the Persian Gulf war in 1990, plus the latest conflict in Iraq.

Most of the cost to produce a gallon of gasoline goes to cover commodity-priced crude oil. The EIA said in 2004 that 47 percent of the price of gasoline went to crude oil costs; 23 percent to taxes; 18 percent to refining costs and profits; and 12 percent to distribution and marketing.

Local reaction

So why, when world crude prices go up, do local gas stations also raise prices of their gasoline — even though it was already purchased at a lower price and is sitting in their tanks? The reason is akin to imagining that if world gold prices rise, the resale value of a gold ring sitting in a jewelry box will rise with it.

"When the price of crude goes up, a refiner or retailer realizes that they are going to have to replace the fuel that is already in their tanks with fuel that is going to cost more. That's why the price can rise so quickly, because of the replacement cost factor," Peacock says.

John Hill, state director of the Utah Petroleum Marketers and Retailers Association, says customers still should not blame their local gas station owners for that.

"Generally, it's the major oil company raising the price of gasoline. For example, during Katrina in less than 24 hours, some (oil companies) raised prices three or four times — with a 42-cent-a-gallon change. In New Jersey, where law prevents retailers from raising gas more than once in 24 hours, many retailers closed their doors because they couldn't keep up with the increases from the oil companies," Hill said.

He added that local gas stations' margins are as small as 6 to 8 cents a gallon to cover costs and make a profit, so they must act quickly to stay abreast of changes that oil companies charge them. He said their margin stays about the same, no matter the price of gas — so major oil companies are the ones that profit from the higher prices.

Adding to problems, he said, is that as gas prices rise, more so-called "drive-away" thefts occur, forcing local stations to keep prices high to cover costs and losses.

A 2002 probe into gas prices by the Senate Permanent Subcommittee on Investigations noted, "Neither wholesale nor retail prices for gasoline are established on a cost-plus-profit basis" but are based instead on reaction to market conditions.

'Big oil,' big profits

As prices have risen, big oil companies have made huge profits. For example, Chevron, ConocoPhillips and Exxon Mobil reported combined profits of $15.7 billion during just the first three months of this year.