Good Question: Reply All-Gas Questions

President Obama plans to address the rising price of gas at a news conference Friday at the White House.

Drivers in Lexington are now paying a $1.59 for gas.

Good Question: Reply All-Gas Questions

Gas is the bloodline that keeps America going, but right now paying for it hurts the wallet.

Donna-Hazard: Who sets the gas prices, are gas station owners required to raise prices automatically?

That decision is not as much of a no-brainer as you might think.

Many times station owners are at the mercy of the wholesale price, if its climbing and their not raising prices they stand to lose money.

Most stations are tied to an oil company that usually sets a price they go by.

Stacy-Berea: How do gas prices compare in the middle east to the gas prices in the United States?

While we may think what we are paying is outrageous, its nothing like what Europeans pay.

Prices in France, Norway and the United Kingdom are nearly double our prices, but in oil rich countries like Libya, Kuwait and Saudi Arabia gas is many times less than a dollar.

When I buy gas what am I actually paying for?

When you pump $30 into your tank, that money is distributed among several entities.

15%- taxes
9%-distribution and marketing costs
24%-cost of refining
52%-crude oil suppliers

In the end stations make about 10 to 15 cents on a gallon of gas.

The Department of Energy says Americans consume about 178 million gallons of gas a day.

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