Calculating provincial prices is not an exact science.

(bettertrades) - As it relates to taxes, higher rates on gas purchases are a significant reason for elevated prices in Europe compared with U.S. prices. Marginal tax rates are also a reason for differing prices between states.

Additionally, stations can charge different rates but tend to price in-line with nearby competitors. Distance from refineries factors in as well, evident by lower gas prices near the major gulf coast refinery region. State environmental regulations (Ethanol use, etc) play a part in varying prices. California is the primary example of a state with tougher standards requiring cleaner-burning fuels.

Refining prices vary depending on what type of crude is processed. Crude is sold in heavy and light forms as well as sweet and sour. The more intensive the refinery process, the higher the price.

Article Index

• Intro
• Cost Per Barrel
• Other Factors
• Where is the oil
• Forecasting