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

With April’s average gasoline price the highest monthly average in the past year, we break down what drives the cost for consumers. In short, it’s four things: the cost of crude oil, refining, distribution and marketing, and taxes.

Because crude oil is the dominant factor, pump prices are largely a reflection of the global oil market, where big swings typically trace back to shifts in demand and expectations rather than supply disruptions. The current conflict in the Middle East is one of the exceptions, functioning as a classic supply shock that has pushed prices higher.

When it comes to policy fixes, the relief tends to be smaller than politicians promise. Read the full article to find out what actually moves the needle for consumers at the pump.