The real issue is supposedly that we don't have enough refineries. The politicians and oil companies have there head up there ass though.
Barrel of oil costs about 74$.
~50% of gas goes comes from the oil itsel, 20% goes to taxes, about 25% into refining, 6-6% into oil company revenue.
Now, if if oil was 65$ a barrel that is ~approximately an increase of 10$ and hence a percertance increase of 10/65 = 15%. Since its only half the cost of gas that relates to about a 7% increase in gas costs...
for a 2.5$ gallon of gas would then increase to 2.65$
Lets suppose that a gallon of gas costs 3$ at 75$ a barrel and it increase
10$ to 85$.then that gallon would then ~ cost (1+10/75/2)*3 ~= 1.07*3 = 3.21.
Yet I bet if gas reaches 85$ then we would be paying 4$ a gallon.
Obviously someone is playing with the numbers(the percentages for gas I got off cnn and I've seen similar numbers on fox and other stations).
(note in some places some people are already paying 4$ a gallon).
The only factor that is not taken into account is the quality of gas. I don't know what those percentages are related to but I doubt there is more than a 5% variance due to quality.
I'd suspect that theres something fishy going on if those percentages are close. No doubt it would stem from the fact that most politicians are idiots and probably couldn't pass a HS algebra test(and hopefully my arithmetic is correct so I don't look like an idiot too ;)
Every day on the news I hear them saying the price is due to supply and demand, but the fact is that oil is not a good but a necessity and the oil companies take advantage of that(it might be supply and demand but its non-linear and extremly complicated).
What do you expect from politicians though?