The cost of refining crude oil makes up another significant portion of the cost of gasoline. The price is set by the individual refineries on a vertically integrated distribution system, said Jim Smith, president of the Florida Petroleum Markets Association. The distributor may decide to lower gains at the retail end in order to boost profits at the refining end, which also accounts for price fluctuations at the pump, Smith said. Fuel at the pump is distributed via waterborne systems such as barges and the terminal fees vary by the size of the port. A large port like Tampa, for example, will have lower terminal fees than a smaller port city, Smith said.
Taxes make up another significant portion of the price of gasoline.
The federal government imposes an 18.4-cent tax on gasoline. Statewide, there is a sales and excise tax of 13.6 cents a gallon. The constitutional fuel tax of 2 cents is used for construction and maintenance of roads. A county fuel tax of 1 cent may be used for any county transportation purpose, and the 1-cent municipal fuel tax is used for municipal transportation purposes. In Okaloosa, the rate is 4.4 cents, and in Walton and Santa Rosa counties the rate is 5.3 cents.