Gasoline prices shot up like a rocket last week, but have been floating back down slowly as though there were being held up by a large parachute. The increase in price was blamed on a fire at a refinery, but Iowa Department of Agriculture fuels analyst, Harold Hommes, says it wasn’t a long-term issue.
Hommes says that wholesale product is what is what is sold to retailers that they eventually sell to you.
Hommes says there are roughly 48 cents of state and federal taxes added to the wholesale cost of gasoline along with a few cents in transportation costs, which added to the wholesale cost of one-70 a gallon would add up to around to roughly two-dollars-20 cents a gallon. Retailers add in some money for profit, with Casey’s Convenience stores reporting they look for 16-point-nine cents a gallon. That would bring the retail price to two-dollars-37-cents a gallon. The latest fuel survey showed gas averaged two-dollars-70 cents a gallon across the state.
