Like most consumer goods, the price of gasoline varies depending on a number of market factors. The price of crude oil, the raw materials for making gasoline, is determined by supply and demand and is often affected by world events. Taxes are a significant part, representing over 40 cents per gallon. As more cities require a unique gasoline formulation to improve air quality, refining and distribution becomes very complex and adds to the price volatility.
To better understand the price of gasoline this week, the Department of Energy gives their explanation.