The price of a gallon of gas can be broken down into six basics costs. Assuming you buy a gallon of gas for $4 here is where that money goes.

1. Cost of Crude Oil ($1.92) – 48% of cost
2. Taxes, State & Federal ($0.40) – 10% of cost
3. Cost to Refine Oil ($0.52) – 13% of cost
4. Distribution & Marketing ($0.52) – 13%
5. Gas Station Markup ($0.24) – 6%
6. Oil Company Profit ($0.40) – 10%

America imports the vast majority of oil that it uses.

Despite long held assumptions that the Middle East controls America’s oil, the fact is that only one of the top five counties that America gets its oil from is in the Middle East.

1. Canada
2. Saudi Arabia
3. Mexico
4. Nigeria
5. Venezuela

OPEC (Organization of the Petroleum Exporting Countries) controls roughly 40% of the world’s supply of oil. Only Mexico and Canada (the US’s 1st and 3rd sources of oil) do not belong to OPEC.

The price of oil comes down to simple supply and demand. Americans consume 400 million gallons of gasoline a day; that is roughly 4-gallons per household per day.

In addition to America’s high demand for gas there is also a worldwide increase in the demand for oil as countries like China and India modernize, people are now able to afford cars and millions of new drivers hit the roads every year.

If you want to save gas, here are a few ideas.

1. Take care of your car: a new air filer, new oil filer and properly inflated tires will all help you squeeze the most out of a gallon of gas

2. Slow down: every mile you drive above 60 mph decreases your fuel efficiency

3. Use cruise control: maintaining your speed will save on gas

4. Avoid quick starts: easing into acceleration from stop signs and stop lights will save on gas

5. Turn off the A/C at slower speeds, roll the windows up at high speeds: you’re A/C pulls on the engine when it is on, however, at faster speeds having your windows down causes drag which robs your MPG

6. Take the trash out: clean out your car, the heavier your car is the more gas is required to move it