How gas prices are built
The pump price stacks four layers: crude oil cost, refining, distribution and marketing, and taxes. Crude is usually the largest single component.
Learn
What builds the number on the sign, why it changes, and how to turn it into your own driving costs. Neutral, practical, and prediction-free.
The basics
The pump price stacks four layers: crude oil cost, refining, distribution and marketing, and taxes. Crude is usually the largest single component.
State taxes, distance from refineries, required fuel blends, and local competition can move your price a dollar or more from the national average.
Summer-blend gasoline costs more to produce and is required in warmer months, which is one reason prices often rise in spring.
Refinery maintenance and outages tighten gasoline supply even when crude is steady, and trucking costs add a few cents before fuel reaches the station.
Federal gasoline tax is fixed per gallon, while state and local taxes vary widely. Taxes are included in the national average shown here.
Doubling your MPG halves your fuel cost at any price. Efficiency is the biggest lever most drivers actually control.
Ready to put the number to work? Start with the fuel cost calculator or check price history.