What Do You Pay for in a Gallon of Fuel?

EIA
What exactly do you pay for when you buy fuel?

What exactly do you pay for when you buy fuel? Well, that depends on whether you’re purchasing regular gasoline or diesel, according to the U.S. Energy Information Administration’s (EIA) latest gasoline and diesel fuel update.

In its latest update, the EIA highlighted that, when regular gasoline was retailing at $4.44 per gallon back in May, consumers would spend 59 percent on crude oil costs, 26 percent on refining costs, 11 percent on taxes and five percent on distribution and marketing.

When diesel was retailing at $5.57 per gallon back in May, consumers would spend 47 percent on crude oil costs, 25 percent on refining costs, 17 percent on distribution and marketing and 10 percent on taxes, the EIA’s latest update outlined.

According to the EIA’s most recent gasoline and diesel fuel update, U.S. regular gasoline prices came in at $5.00 per gallon on June 13, 2022. California registered the highest regular gasoline prices as of June 13, at $6.27 per gallon, followed by the West Coast, at $5.86 per gallon, and New England, at $5.02 per gallon, the EIA’s latest update showed.

U.S. on-highway diesel fuel prices in the U.S. came in at $5.71 per gallon on June 13, 2022, the EIA highlighted. California registered the highest on-highway diesel fuel prices as of June 13, at $6.88 per gallon, followed by the West Coast, at $6.42 per gallon, and New England, at $6.12 per gallon.

According to the AAA gas prices website, on June 22, the average price of regular gasoline in the U.S. was $4.95 per gallon and the average price of diesel in the country was $5.81 per gallon. The AAA gas prices site shows that the highest recorded average price for regular unleaded was posted on June 14, at $5.016 per gallon, while the highest recorded average price for diesel was posted on June 19, at $5.816 per gallon.

In remarks during a press gaggle on June 20, U.S. President Joe Biden revealed that he was considering a pause on the federal gas tax.

“I hope I have a decision, based on data I’m looking for, by … the end of the week,” Biden said during the press gaggle comments.

When asked if he will be sending Americans gas tax cards, or gas rebate cards, Biden said, “well, that’s part of what we consider … that’s part of the whole operation … I’m just not in a position to answer that right now”.

Source: Rigzone.com