Who is making all the money from high gas prices?

Major oil companies like ExxonMobil, Chevron, Shell, BP, and Marathon make significant profits from high gas prices, as their upstream (extraction) and refining operations benefit most from increased crude oil costs, with billions in earnings funneled to investors through dividends and stock buybacks, while individual gas stations often earn modest profits, relying more on convenience store sales. Governments also collect substantial revenue through taxes.

Which president ended the price controls on oil?

President Carter was not in office long enough to complete the implementation of his energy programs. It was up to President Ronald Reagan to finish the effort when his administration took over in 1981. Reagan believed strongly in using the free market to deal with U.S. dependence on foreign oil.

Who controls the price of gas today?

Ultimately, prices are set by supply and demand and may be influenced by perceptions about future supply and demand. Increased diversity in U.S. oil and natural gas production helps make U.S. markets more stable.

What is the real reason for high gas prices?

As international commodity, oil is priced on an international basis — according to global supply and demand. Global demand is the reason the price is going up now. The world's economies recover from the slump of the past few years and the developing economies, like China, are increasing their demand.

Can the government control the price of gas?

No, the government does not directly control gas prices; they are set by global supply and demand, geopolitical events, and market forces, though government policies (like taxes, drilling regulations, or oil reserve releases) can influence them temporarily or indirectly. The primary drivers are crude oil costs, refining, distribution, and taxes, with no single entity controlling the final price at the pump.
 

Who Actually Controls Gas Prices? | Climate Town

Who controls gas prices in the world?

No single entity controls global gas prices; they're set by a complex mix of global supply and demand for crude oil, influenced heavily by major producers like OPEC+, and further shaped by refining costs, taxes, geopolitical events (like conflicts or sanctions), and national policies, with oil prices generally accounting for over half the pump price. 

Why can't the US use its own oil?

The U.S. can't use all its own oil because its massive refining system was built for heavy, sour crude (thick, high-sulfur oil), but the fracking boom primarily produces light, sweet crude (thin, low-sulfur oil), creating a mismatch. The U.S. often exports its abundant light oil and imports the heavy oil its refineries are designed to process, as this is more economically efficient and profitable for the industry, despite producing enough overall oil. 

Who pays the highest gas prices in the US?

The total tax. burden on gasoline from these various taxes and fees varies significantly for drivers across the US. California levies the highest tax on gasoline at 70.9 cents per gallon (cpg), followed by Illinois at 66.4 cpg and Washington at 59.0 cpg.

Is it legal for gas stations to charge more for credit?

But you may not realize you're spending more because of the payment method you use. Gas stations are legally able to charge extra for using a credit card. A surcharge passed on to the customer allows them to recoup the fees that the Visa and Mastercard payment networks charge them for transactions.

Who controlled 90% of the oil industry?

Rockefeller, founder and largest shareholder of the Standard Oil Company, controlled more than 90 percent of U.S. oil production, dominating the world market.

Which President froze prices?

Nixon issued Executive Order 11615 (pursuant to the Economic Stabilization Act of 1970), imposing a 90-day freeze on wages and prices.

Why is the US dollar not backed by gold?

August 1971. With inflation on the rise and a gold run looming, President Richard Nixon's team enacted a plan that ended dollar convertibility to gold and implemented wage and price controls, which soon brought an end to the Bretton Woods System.

Is gas cheaper in Mexico or the USA?

Generally, gas is cheaper in the United States, primarily due to significantly higher taxes in Mexico, although prices fluctuate and can be similar or even slightly cheaper in parts of Mexico bordering the U.S., especially when accounting for the liter-to-gallon conversion (nearly 4 liters per gallon) and the base cost vs. taxes. Recent reports from early 2024 and late 2025 show U.S. averages significantly below Mexico's, with Mexico's higher prices driven by hefty federal and state taxes (IEPS and VAT). 

Why are oil companies making record profits?

In Biden's case, many of the dynamics that supercharged oil and gas industry profits during his presidency were not directly related to his administration's policies: Russia's invasion of Ukraine, a post-pandemic surge in travel demand and the proliferation of new technology that helped the US significantly increase ...

Is there any benefit to higher octane gas?

This is also known as engine "knocking" and can damage your engine. Some vehicles have high compression in their cylinders, typically high-performance sports cars. So, they must use high-octane gas to help prevent engine knocking and achieve better performance.

Can the government control gas prices?

No, the government does not directly control gas prices; they are set by global supply and demand, geopolitical events, and market forces, though government policies (like taxes, drilling regulations, or oil reserve releases) can influence them temporarily or indirectly. The primary drivers are crude oil costs, refining, distribution, and taxes, with no single entity controlling the final price at the pump.
 

Where is the cheapest gas in America?

The cheapest gas in America is typically found in the South and Midwest, with states like Oklahoma, Mississippi, Louisiana, and Texas often having the lowest average prices, driven by lower taxes, local refining, and shorter transport routes, though specific prices change daily. For real-time data, check resources like AAA, GasBuddy, or Forbes (GasBuddy).
 

How much is 1 gallon of gas in Iran?

Gasoline in Iran is extremely cheap due to heavy government subsidies, with prices structured in tiers: a basic subsidized rate around $0.03 per liter (about $0.12 per gallon) for a monthly quota, a second tier slightly higher, and a third tier around $0.08 per gallon for extra fuel, making it one of the world's lowest-priced markets even after recent small increases in late 2025. 

What country owns 18% of the world's oil?

Venezuela 🇻🇪 has the largest proven oil reserves in the world, ranking first ahead of countries like Saudi Arabia 🇸🇦 and Iran 🇮🇷 . Its reserves are estimated to be around 303 to 304 billion barrels, representing about 18% of the global total.

Can the US survive on its own oil?

Oil Reserves in the United States

the United States has proven reserves equivalent to 4.9 times its annual consumption levels. This means that, without imports, there would be about 5 years of oil left (at current consumption levels and excluding unproven reserves).

Will America ever run out of oil?

No, the U.S. isn't expected to "run out" of oil in the near future; estimates place remaining supplies in the decades to centuries range, with new technology constantly revealing more recoverable resources, though production might peak and decline in coming decades as extraction becomes more costly, with global reserves likely sufficient for future demand given technological advances. The key isn't running out entirely but managing finite resources and transitioning to other energy sources as costs rise and demand shifts. 

What is the real reason gas prices are so high?

California's Oil Refineries

Because more than 90 percent of the gasoline consumed in California comes from in-state refineries, significant unplanned refinery outages contribute to increases in the price at the pump. The state's 14 oil refineries are in the Bay Area, Central Valley, and Los Angeles.

What country has the cheapest gas?

Countries with the cheapest gas consistently include Iran, Libya, Venezuela, Algeria, and Egypt, often due to government subsidies, abundant domestic oil, and low fuel taxes, with prices varying but often under $0.50 per liter, though recent data points to countries like Egypt, Iran, and Bahrain leading the list in mid-2025. 

Who really controls oil prices?

Oil prices are driven not only by current supply and demand, but also by expectations of future supply and demand. OPEC tries to adjust its production targets based on these expectations. However, estimating future supply and demand is particularly challenging when market conditions are uncertain and evolving rapidly.