Why are gas prices so high?

Most experts say gas prices won't go much higher this summer

NORTHAMPTON, Mass. (WWLP) – Most people pay to fill up their gas tank without much thought about what they are actually paying for.

22News visited the F.L. Roberts Company and we discovered that a gallon of regular gas costs less than $3 a gallon.

So, why would a driver have to pay $3.69 cents? Frank Roberts told 22News taxes are the biggest reason. We pay about 25 cents in state taxes and about 20 cents in federal taxes.

That tax money gets put into transportation trust funds to be used for highway and road construction. There’s also a cost to transport the gas from the terminal to the station that can add anywhere from 3 to 8 cents a gallon. Finally, there’s an 8 to 20 cents a gallon profit margin for retailers.

Frank Roberts also told 22News why gas stations near each other may often charge different prices.

“It depends on, you know, markets are obviously different. Different fuel brands have different costs so that driven by what’s priced out at the street. Marketers have different strategies and fuel prices change on a daily basis so what somebody paid yesterday for fuel, somebody could be paying something different today or the next day,” said Roberts.

Most experts say gas prices won’t go much higher this summer.

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