The Real Cost of a Gallon of Gas

From Newsmax:

Today's Washington Post breaks down the real cost of a gallon of gas.

Before politicians grumble about big oil profits - which continue to grow - they may also want to admit that government taxes make up almost 20% of the amount consumers pay for a gallon of gasoline.

Also, with federal government restrictions on oil refineries (there hasn't been a new one built in the U.S. in over 30 years), the cost of actually making gasoline has grown as well.

Plus, the government's 2005 Energy Policy Act calls for the use of more ethanol in gasoline - and that is costing oil companies billions as they revamp storage and handling facilities.

Thanks to refinery and distribution woes related to Hurricane Katrina, gasoline production in the U.S. has dipped from 8.5 million barrels in April 2005 to 8 million in April 2006.

Here is the Post's breakdown on the price of gasoline:

• 54.8% can be attributed to the cost of crude oil
• 21.7% is the cost of refining
• 4.5% goes for marketing, distribution and storage
• 18.9% is for taxes

So, the next time you're complaining about Big Oil as you pay $3 at the pump, you may want to call your congressman.