Gas prices are getting very high and are affecting everyone's savings abilities. Right now I'm stationed in Germany and the prices that AAFES offers are not competitive compared to some states. So everyone is forced to battle these high prices. I think it's important for everyone to understand how gas prices work.

Gas starts from oil. According to the Department of Energy, one barrel can create 42 gallons of gas. There are other by products that come from making gasoline; i.e. petroleum jelly. The barrel is the unit of issue across the world for oil. Here is the price structure of gasonline prices according to the Department of Energy (Feb 2006).

59% goes to crude oil. The majority of crude oil comes from OPEC. This is the controversial issue of terrorism and our intentions in the Middle East.

10% goes to the refineries that turn oil to gasoline.

11% goes to marketing and distribution. This is all the costs that are incurred from the refineries to your gas tank.

20% are taxes. While you are serving in the military...BE PROUD because of our power and democracy we do not heavily tax our gasoline. If anyone has been stationed overseas they will know how much other countries tax their citizens. GOD BLESS AMERICA!

Do not confuse yourself when you complain in public. The service stations DO NOT make their money from the gas you get from their pumps. Service stations only add a few cents per gallon and are forced to keep their prices low because of strict competition between stations. It's all the food and crap we buy every time we fill up for gas. My wife, for example, can not go to the gas station without buying candy.

Now you know. Go to www.energy.gov to find out more.

Source: www.articlesphere.com