Gasoline price breakdown by cost composition in the U.S. 2021

As of February 2021, crude oil accounted for a 56 percent share of the retail cost of gasoline in the United States. Crude oil costs are the greatest determining factor for petroleum product prices such as gasoline. This is also reflected in the U.S. diesel price breakdown, with crude oil making up 49 percent of the retail price.

U.S. gasoline cost breakdown

The end price that consumers pay for gasoline in the U.S. is made up of several different components. The weighting of these different costs in the end price of gasoline is also very dynamic depending on the market. In April 2020, just 25 percent of the cost of one U.S. gallon of gasoline was from the cost of crude oil as a result of the 2020 oil crisis. Other cost components are those associated with refining, distribution and marketing, and taxes. Residents in the West Coast region of the U.S. had to pay the highest gasoline taxes out of all U.S. regions, at 53.31 cents per gallon as of January 2021. That same month, the U.S. South paid the lowest gasoline taxes.

U.S. gasoline prices

Since 1980, U.S. gasoline prices have fluctuated greatly, usually reflecting the volatile nature of crude oil prices. The U.S. has some of the lowest gasoline prices in the world. In the second quarter of 2020, the average national gasoline price was 2.5 U.S. dollars per gallon. Drivers in the Netherlands paid the most, at 6.64 U.S. dollars per gallon. When looking at the real U.S. gasoline price to end users, figures fell to 0.87 real U.S. dollars per gallon in 2020. This ‘real’ U.S. dollars figure refers to the purchasing power of one U.S. dollar relative to the period of time between 1982 and 1984.