The retail price of gasoline includes four main components: The cost of crude oil; Refining costs and profits; Distribution and marketing costs and profits; Taxes; Retail pump prices reflect these components, as well as the profits (and sometimes losses) of refiners, marketers, distributors, and retail station owners. read more
The cost of crude oil is the largest factor in the retail price of gasoline. The cost of crude oil as a share of the retail gasoline price varies over time and across regions of the country. read more
Between 2007 and 2016, the price of crude oil averaged 62% of the average retail cost of gasoline. Federal and state taxes were the next highest cost factor, averaging 15%, followed by refining costs and profits, then distribution and marketing. read more