Gasoline and diesel prices are determined by several factors:
1. Crude Oil Prices: The cost of crude oil, which is refined into gasoline and diesel, is a major factor. Crude oil prices are influenced by global supply and demand.
2. Refining Costs: The cost to refine crude oil into gasoline and diesel also affects the final price. This includes the cost of energy, labor, and other expenses.
3. Distribution and Marketing Costs: These costs include transportation, storage, and marketing expenses.
4. Taxes: Government taxes, both federal and state, can significantly impact the price of gasoline and diesel.
5. Supply and Demand: Like any commodity, the price is also influenced by the balance of supply and demand in the market.
6. Seasonal Factors: Prices can also be affected by seasonal changes in demand, such as increased driving during summer months.
Remember, these factors can vary locally and internationally, leading to price differences.
