What's in the Price of a Gallon of Gas?

A recent analysis breaks down the components of U.S. gasoline prices: 51% comes from crude oil, 20% from refining, 11% from distribution and marketing, and 18% from taxes. The ongoing conflict in Iran has led to significant supply issues, particularly in the Strait of Hormuz, impacting millions of barrels daily. California drivers have been facing a "mystery gasoline surcharge" of 20-30 cents per gallon since a refinery fire in 2015, resulting in $59 billion in costs from 2015 to 2024. Gas tax holidays provide limited relief, offering only about 79% of the reduction. The Jones Act adds 1.5 cents to East Coast prices, costing $770 million each year, although it's currently on hold. Refiner profits surged recently, with Exxon earning $4.2 billion and Chevron $2.2 billion, both exceeding expectations. Analysts predict even higher earnings for the second quarter.