Gas prices are skyrocketing all around the country, but prices vary greatly from state to state. If the U.S. would produce more oil, gas prices would drop, according to Fox Business.
Oil is a global market, so investors across the globe set the price for crude oil. But state legislators have some affect on how much tax consumers pay for gasoline, and the oil companies affect gas prices some too, according to the article.
The cost of crude oil is the main factor across the nation. Ten years ago, 50 percent of the cost was for the crude oil. Today, that number is between 70 and 80 percent, and there are many other costs that consumers are paying for, according to Fox Business.
Taxes affect each state's gas pricing greatly, according to the article. The national average is 47 cents per gallon, including 18 cents by the federal government. But people living in California pay 64.5 cents per gallon in taxes alone, while people in Wyoming, New Jersey and Georgia pay just 32 cents per gallon in taxes.
Another issue affecting gas prices is the ethanol tax credit that expired. The government requires that each gallon of gasoline contain 10 percent ethanol. This used to be supported by tax credits, but instead of supporting it with taxes, consumers pay more at the pump, according to the article.
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