Gas Prices Broken Down

Ever wonder why gasoline is higher in Kearney than Lincoln? Well it has nothing to do with city taxes as cities do not access taxes on gasoline. Thus, it can be frustrating if the gas at your corner station is higher than at a station in the next town, or the next state. AAA reports that Nebraska’s average fuel price of $3.217 per gallon is among the highest in the nation.

Although Nebraskans pay 45.7 cents per gallon in federal and state gas taxes, taxes here are higher than neighboring states but slightly lower than the national average – so the price shouldn’t be blamed entirely on taxes.

Gas prices are different in each state for the obvious reason that taxes vary, but more importantly may be the availability of access to a pipeline or distance from an oil refinery. Of course, we have all become increasingly aware of how national events – such as war or hurricanes – can affect prices, but local competition can also impact the price at the pump.

Of course some of the money you spend at the pump does go to the service station. While some consumers blame high prices on station markup, service stations typically add on a few cents per gallon. There's no set standard for how much gas stations add on to the price.