Constant cutthroat competition. This factor most explains gasoline price volatility. These price fluctuations will likely persist since our country relies on imports to meet over 56 percent of our needs. Our political leaders for the last eight years and more have miscalculated our national interest by greatly restricting domestic oil and natural gas production. They have ignored new technology and my industry's proven ability to extract oil and natural gas in an environmentally sensitive manner.
Taxes are the second component of gasoline prices.
Aside from the IRS, the oil industry is the nation's largest tax collector. Taxes often comprise 40 percent or more of the price of a gallon of gas. This is especially true in Illinois since it is one of only a handful of states that allows a sales tax on gasoline and the only state to allow local taxes on gasoline. These taxes are in addition to state and federal gas taxes. The total tax ranges from around 45 cents per gallon to over 65 cents per gallon at today's prices.