Unraveling the Mystery at the Pump

A look at how gas prices are determined and why they're rising.

As the hit to the wallet gets harder, many drivers are wondering: How are retail gas prices are determined? And some are thinking of giving up driving altogether—or at least as much as possible. “If gas continues to go up, I’ll probably have to have a purpose to drive somewhere,” said Anne Leadbeter, a single mom in Huntley who works full-time in West Dundee during the day and attends McHenry Community College at night. Naturally, gas station owners account for some of it as they try to cover their operating costs, but for the most part, retail gas prices are directly related to the price of crude oil. And while the relationship between the two may appear simple, it’s actually quite complex. Think of it as a game of bumper cars with the …

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