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What determines the price of gas?

The biggest factor is the price of crude oil. It makes up for about two-thirds of what we pay.

CHARLOTTE, N.C. — Gas prices in the Carolinas are well over $4, with North Carolina drivers paying $4.67 on average and South Carolina paying $4.57, and those prices won't be dropping any time soon

But many drivers might be wondering what's behind the surge that's led to record prices across the U.S. So what exactly determines the price of gasoline? 

Let's connect the dots.

AAA says there are a few factors that determine gas prices:

  • Crude oil prices 
  • Taxes distribution 
  • Marketing and refining

The biggest factor is the price of crude oil. It makes up for about two-thirds of what we pay at the pump. Crude oil prices are up about 70% nationally from last year. 

American oil companies lead the world in crude production, but we still use more gas than we can make. Saudi Arabia is second in production with Russia a very close third. 

RELATED: Biden says recession is 'not inevitable'

Refining costs are the next big contributor. More refineries are in the South,  which is why we typically see some of the cheapest gas in the country. But no matter where you drive, we are all still feeling the pain at the pump.

RELATED: A $16,000 typo: Gas station manager fired for misplacing the decimal point

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