29 Feb '12, 11pm

What Actually Determines the Cost of Gasoline

What Actually Determines the Cost of Gasoline

The price of gasoline is one of the most important variables in daily American life. The vast majority of Americans own cars—there are some 240 million of them on the road—and rely on them to commute to work and for general transportation. Whenever gas prices get too high, it can cause an economic shock for hundreds of millions of people. So whenever those prices show signs of heading towards the $4 a gallon mark, a mild panic ensues. Typically, it arises from the genuine concern of ordinary citizens, and then is promptly fanned into something resembling hysteria by opportunistic politicians and pundits. Exhibit A: Drill, baby, drill . Republicans take advantage of the gas anxiety to claim that a lack of domestic drilling and too-tough regulations that are causing prices to spike. Specifically, they allege that Obama’s tree-hugging energy policies are preventing oil compan...

Full article: http://www.treehugger.com/fossil-fuels/what-actually-dete...

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