What goes into the price of a gallon of gas

Refining turns crude into gasoline that meets product specifications. EIA estimates the refining component as the difference between the monthly average spot price of gasoline and the average crude price paid by refiners. That difference represents refining costs and profits in EIA’s method; it is not a direct measurement of a refinery’s profit margin. Refinery maintenance, outages, operating costs, available capacity and the type of fuel being produced can affect the market value of gasoline as it leaves a refinery. Seasonal fuel requirements can also change which blends are sold in some areas.

After refinery production, gasoline must be stored, transported and sold. EIA’s distribution-and-marketing component is calculated as the average retail price minus the other three components. It includes costs and profits associated with getting fuel through the distribution chain and marketing it to customers. It is a residual calculation, not a single national invoice that separates the cost of trucking, pipelines, terminals, storage, or station operations. The tax component is EIA’s monthly national average of federal and state taxes applied to gasoline. Because state and local tax structures differ, the national share should not be read as the tax amount at every pump.

These pieces do not adjust at the same speed. EIA notes that spot gasoline prices can change before retail prices respond. During that lag, its calculated refining share may rise while the distribution-and-marketing share falls; later, when retail prices catch up, those shares can move in the opposite direction. The component labels therefore help explain how the monthly average is assembled, but they should not be mistaken for fixed percentages or stable margins. In May 2026, the crude share was larger than the other listed pieces; in another month, the mix can be different.

A shopper’s posted price can also differ from the national average because of location and product. Transportation distance from a refinery or terminal, local supply conditions, state and local taxes, competition among stations, and regional fuel specifications all matter. Regular, midgrade and premium are distinct grades, and the EIA component table cited here is specifically for regular gasoline. A station’s cash price, loyalty discount, or advertised offer may also differ from the broad average survey measure. Comparing the same grade, date, and payment terms gives a more useful local comparison.

To read the data without mixing dates, keep two questions separate: what was the average pump price during a given month, and what is the price in a particular place now? EIA’s component table answers the first question for May 2026. Its weekly retail-price series is a separate measure with its own observation date and does not provide a matching weekly component split. For current local context, compare a recent price in the same market and grade, then use EIA’s monthly percentages as an explanation of the national price structure rather than a prediction of what a station should charge.

What would change the picture: EIA's next component update, which will show whether crude's share grew as oil climbed past $100 this fall, and any change to federal or state fuel taxes, which shift the tax share directly.

Uses EIA’s published May 2026 component breakdown, released October 14, 2026. National monthly shares are not local price estimates.