KY: Gas price breakdown, where your money goes Gas price breakdown, where your money goes
Biggest chunk to oil suppliers
SPRINGFIELD, Mo.-- Gas prices are skyrocketing. The largest surge has been in the last two to three weeks.
Unrest in the Middle East is part of the problem, but that's not all that's driving up prices, according to local economists.
If you look at it on a graph, gas prices have gone up since January 2009. Local experts tell us, this is only the beginning.
When you pay for one gallon of gas, the first 68-cents of your hard-earned dollar bill goes to crude oil suppliers. The next 13-pennies or so, goes to taxes, federal, state and local.
Eleven-percent goes to the refining process, and the last 8-percent goes to distribution and marketing.
Although it might not seem like it to some, the increase in gas prices is actually indicative of a nationwide recovery from the recession, said Drury University economist Bill Rohlf, Ph.D.
Of course, unemployment is still high, but economists say we are indeed in recovery mode.
Drivers are dishing out the dough, paying more at the pump. But recent history will show we're still quite a ways from the tipping point where people actually stop driving.
"I have kids that have activities and events that I have to get them to, church activities," said Melissa Wallings, driver from Springfield.
Carson Samples who drives a Tahoe says the higher gas prices has him considering getting a smaller vehicle.
"I drive a lot for work and I'm spending about 197-dollars every two weeks in my Tahoe driving my client around," Samples said.
Experts say gas hovering around $3.30 a gallon in Springfield will likely only get worse.
"We saw gas prices up around 4-dollars, I expect them to go there again. How rapidly we get there, I don't know the answer to that," said Dr. Rohlf.
Another thing Dr. Rohlf says he is keeping his eye on is China. He says as China, and other areas of the world become more advanced, start driving cars and buying more commodities, prices everywhere will rise.
When asked if the days of $2.50 gas are done, Rohlf said, "we don't want that 2-50 gas back-- because when it goes that low, we are likely in another recession."
