It’s no secret that the issue of gasoline worries more than one person in the United States. Inflation led to a significant increase in prices, hitting people’s pockets and accounts payable. Although it has been under control in recent weeks, it continues to cause concern.
Consumers were surprised by peaks that exceeded $5 per litre. However, it should be noted that the cost of fuel will always vary depending on the state of the country where the driver is located.
For example, filling up your gas tank in California doesn’t cost as much as it does in rural Illinois. But why is this happening?
The reason is often cited as the “cost of living”, meaning that some states are more expensive to live in than others. However, there are reasons that go much further.
The reasons
According to The Washington Post, these variations are caused by various reasons, among which world supply and demand in relation to oil prices stand out, then the refining process also has a significant impact.
Most of the refineries in the United States are located in Texas and along the Gulf of Louisiana, so the cost of shipping and distribution to the rest of the country affects “fill the tank” cancellations.
Transit zones and delivery channels leave their mark on the final price. The east coast has important pipeline facilities for pumping gasoline, so these areas appear at a reduced rate compared to other places, such as the Rocky Mountains to the west, since it is impossible to carry out this process through the pipeline there.
And if that wasn’t enough each gas station has its own individual prices at the level of operating costs, affecting local fuel prices. Similarly, environmental policies in terms of how it is cleaned, transported, stored and managed also leave their mark.
Last but not least, each state in the country has its own gas tax rates, reflecting the difference in price for the respective metering pumps. Clearly, the costs go far beyond the typical “cost of living” notion.
Source: La Opinion
Ray Bly is an accomplished journalist in the field of Automobile. He currently works as a writer at 24 news breaker. With a deep understanding of the Automotive industry and a talent for uncovering the latest developments, Ray’s writing provides readers with insightful and informative coverage of the latest news and trends in the field.