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How Are Gas Prices Set? : Planet Money : NPR

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How Are Gas Prices Set? : Planet Money : NPR

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SAN FRANCISCO - MAY 2007: Gasoline prices near $4 a gallon are shown on a gas station display in San Francisco, California, May 7, 2007. (Photo by Justin Sullivan/Getty Images)

Justin Sullivan/Getty Images

SAN FRANCISCO - MAY 2007: Gasoline prices near $4 a gallon are shown on a gas station display in San Francisco, California, May 7, 2007. (Photo by Justin Sullivan/Getty Images)

Justin Sullivan/Getty Images

Gasoline is expensive. This is not surprising if you frequently fill up your tank, watch the news, or read about inflation.

We saw rising oil prices at the depots, which made us angry and suspicious and fueled speculation that the oil companies were taking advantage of us.

On today’s show, we get to the bottom of this. We break down the price of a gallon of gas into its component parts to answer the question you’ve all been wondering all year – is someone deliberately raising prices and keeping them high to make more money?

music: Looking back, Late & Wonderful atmosphere

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