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Gas-Price Rise Fueled By Taxes

Oil Companies Drop Inventories to Keep Gas Prices Up

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Oil Companies Drop Inventories to Keep Gas Prices Up

FBN’s Liz MacDonald on oil companies keeping inventories low and increased state taxes affecting gas prices.

The price for a gallon of gasoline is up 45 cents in the past four weeks. Gas has now risen 33 days in a row, says AAA.

Rising prices come even as the U.S now produces more than half of the oil it consumes, with last year the largest one-year production jump ever. So why the gas price spike? 

It’s not just speculators, nor the summer blend switch, nor even refinery logjams.

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A big reason: taxes.

Closely-watched crude inventories in the Gulf Coast declined by 12.5 million barrels in December, 50% above the 31-year average, says the U.S. Energy Information Administration


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