TULSA, Okla. - Gas prices jumped 16 cents yesterday and left many drivers wondering why.
KRMG took action to find out what goes into gas prices.
The Oklahoma Energy Resources Board tells KRMG there is a common misconception that one person or entity is responsible for setting gas prices; but in reality it’s a much more complicated process.
The OERB says the overall price of a gallon of gasoline is based on the cost of refining crude oil, combined with taxes, distribution, the global market, and supply and demand.
The biggest component... the cost of crude oil. The OERB says, in the summertime it costs the refineries more, because summer-blend fuel (which is required by the EPA during summer ozone season) is more expensive to produce.
The summer blend is required by the EPA during summer ozone season and releases less smog and pollutants into the atmosphere during the hot summer months.
Taxes, refining, transportation and distribution make up most of the remainder of the costs.
The OERB says each of these increase in cost every year, which ultimately affects the price at the pump.