America's convenience store retailers are greatly concerned about this price increase. Like the consumers hit by the higher prices, we also have to pay for the higher costs of gasoline, from higher transportation costs to transport it to our stores, to filling up our own gas tanks. More importantly, we are part of this community, and we hear from our customers everyday about the burden these high prices are placing on everyone. While convenience store retailers like myself are on the front-lines in selling gasoline, it's difficult for us to predict when and if future price spikes will occur. After all, approximately 93 percent of the price of a gallon of gasoline is determined even before we take possession of it.
Taxes account for more than a third of the price of gas.
Another 19 percent of the price is from the cost to refine crude oil into gasoline. There also are several other factors that have contributed to the recent rise in prices, many of which are related to supply. Prices are a product of supply and demand. Good weather and vacation travel this time of year typically increases demand for gasoline by 5 percent. That tends to place stress on an already stretched supply system.