Don't forget to enter the free gas giveaway(ends June 30th) and subscribe to SingleGuyMoney.

I have to give kudos to my employer. I would like to give the name of the company but I won't because I would like to try and remain as anonymous as possible on this blog.

We had a meeting yesterday with the Human Resources Manager. He called us all in and explained that the company is concerned about how gas prices are affecting the employees and they are trying to make it a little easier to get to work. He said that while they would love to be able to give everyone a raise to help offset the rising cost of gas and food, it just isn't in the budget right now.

What he proposed is a four/one work week. Basically, this means we will work 4 days in the office and 1 day from home. While this won't make a huge difference, every little bit helps. For the employees like me that drive a company vehicle, we will also have the option of working one day from home. This move will save the company money because they are paying a little less for gas to fuel up the company vehicles. Currently, I pay $30 per paycheck for the privilege of using the company vehicle. Sixty dollars a month is peanuts considering my company pays for 100% of the gas, maintenance, tags fees and taxes.

Looks like one police department here in metro Atlanta is really feeling the pain of rising gas prices. The City of Holly Springs, GA has already burned through 60% of their fuel budget 2008 and we are only halfway through the year. To help with the budget, the City Council has approved a $12 fee to be added to all speeding tickets and/or moving violations.

The added fee is expected to bring in about $26,000 in revenue for the town. The additional fee is certainly not being taken lightly by the citizens who feel that this is just another way for the government to get in their pockets. The response from Holly Springs Mayor Tim Downing is that "The system is self taxing. If you don't break the law, you don't have to pay the fee".

I'm sure this is a new trend that will probably start sweeping the nation. The City of Atlanta has approved a 13-0 vote on Councilman CT Martin's proposal to add a $10-$15 surcharge for speeding and other moving violations in the city. Mayor Shirley Franklin wants to recover the rising fuel costs without having to raise property taxes.

I'm certainly going to have to be cautious of my speed in both of these areas. I have to go thru Holly Springs to go visit one of my friends and I am in Atlanta all the time on business.

Reminder: Don't forget to enter the free gas giveaway and subscribe to SingleGuyMoney.

Source: USA Today

Image Credit: Accordion Chick

Don't forget to enter the free gas giveaway & subscribe to SingleGuyMoney.

Next time you pull up to the pump at your favorite gas station and fill your tank full of fuel, you'll know who's pockets the large amount of money you just paid is going into. Many people probably think that the gas station owner is making pockets full of money from the high gas prices but you are mistaken. The gas station owners are actually making very little money from the gas they sell.

Who gets what percentage of your money when you pump one gallon of gas? The price of one gallon of gasoline is determined by a number of factors.


Listed below are the components of the price of one gallon of gas from largest to smallest percentage:

Crude Oil. This one certainly composes the biggest chunk of a cost of a gallon of gas. According to the Energy Information Administration, crude oil composed 58% of the price of the national average of the price of a gallon of gasoline in 2007. This percentage has increased from an average of 48% between 2000-2007. The amount of crude oil produced by the Organization of Petroleum Exporting Countries (OPEC) generally determines the price of a barrel of oil. As of this morning, the cost of a barrel of crude oil is $139.

Refining. The cost to refine crude oil consists of about 17% of the cost of a gallon of gas. This cost varies in different parts of the country due to the different gas formulation requirements. Crude oil must be refined to make it useful for gasoline.

Taxes. Gasoline is taxed not only by the Federal government but also by State and local governments. Taxes compose approximately 15% of the cost of a gallon of gasoline. Eleven States also levy additional State sales and other taxes; some of which are applied to the Federal and State excise taxes. The differences in State taxes generally account for the difference in gas prices from state to state.

Distribution, Marketing and Retail Dealer Costs. The cost to ship and distribute gasoline to your local gas station is about 10% of the cost of a gallon of gas. Crude oil is first shipped to refineries via pipelines and then is refined into gasoline. It is then sent to a distribution point and then shipped via tanker trucks to the local gas station. Oil companies are in competition with each other and the cost of advertising their product is passed along to consumers. The cost of advertising and the retailer markup is included in the 10% figure.

Why do gas prices fluctuate?
The price of gas tends to fluctuate due to a number of factors like:

Season. Gas prices are generally higher in the summer due to more people being on the road travelling for summer vacations.

Crude Oil Supply. Crude oil prices are determined by worldwide supply and demand. When demand is low and there is plenty of crude oil, prices are lower. When the production is low and demand for crude oil is increased, prices will rise.

(Sources: Energy Information Administration, US Department of Energy)

I'm a little late with today's "Thursday Talkback." It's been yet another crazy week at work and while the coming holiday on Monday is nice, it won't help with my workload.

Here's today's Thursday Talkback question:

With the price of gas steadily increasing, do you plan to modify your summer vacation plans??

Image Credit: Kossy