Why Are Gas Prices so High?

The most common story is that it's a result of the surging demand from China and India and not enough oil supply from Nigeria and Iraq. And let's not forget the decline of the dollar that has also put pressure on these oil prices. In 1978 the price of a barrel of oil was around $13.55 a barrel. With the combination of the Iranian revolution and the Iraq-Iran War caused oil prices to more than double from $13.55 in 1978 to $35.00 a barrel in 1981.

So then, how did we get to $145.78 a barrel today? One barrel of oil (approximately 42 gallons crude) refined makes about 19.6 gallons of gasoline. The remainder of this goes to fuel oil,plastics,jet fuel, propane and asphalt. As is with everything else you buy, it is also priced according to supply and demand. One other thing is that they are affected by oil price futures. These are traded on the commodities futures exchange. Prices fluctuate daily according to what investors think that the price will be in the future.
Some traders are driving up the price of oil even though in reality, the supply has increased and the demand has fallen.

Now let's consider the taxes involved here. Taxes are 19 % of your gas prices. Refinery costs also have 19 % taxes, and distribution costs are 9 %. The latter two taxes cannot be lowered as they are fixed.
Normally summer prices on a gallon of gas increase about ten cents a gallon due to vacation driving.

With all of these factors in mind, we see that we have no real control over the prices leaving us with finding ways to curb our own usage and get the most out of each gallon. The best way of doing that is by keeping your tires inflated to the correct poundage. Under inflated tires can affect your gas mileage. Checking your tires once a month will help. You will also save gas if you dare to go the speed limit. Most of us go slightly over and some as much as ten miles an hour over it.. You may need a bit more time to get where you are going, but in the long run, you will save on gas consumption.
Don't jump on the gas as soon as the light changes, this is nothing more than a fuel waste, it's better to accelerate slowly. This does not mean you have to crawl through the light, just go at a normal pace.
Try what is known as right turn driving, you make your scheduled stops by making a circle, this way you are not idling while waiting to cross traffic or turn left. Idling wastes gas.

Some other ways would be to not drive, instead walk where you can. Ride a bike, car pool or take a bus.