Why Are US Gas Prices So High, and How Much Comes From Crude Oil?

Few prices are as visible as the number on the sign at the gas station, and few cause as many complaints. The reasons behind it are well documented by the US Energy Information Administration.

What people on X are asking

In August 2026 a reply asked a commentator then why are gas prices so high?. In July another user posted why are gas prices so high?!?, and in August a reply asked the same while mentioning the war, refining and state taxes as possible reasons. Those three factors are exactly where the answer lies.

The fact-checked answer

UXS chart

US regular gasoline, average retail price ($ per gallon, weekly)

Regular gasoline (US average): latest

$4.15

November 2, 2026

Highest in chart period

$5.01

June 13, 2022

Lowest in chart period

$0.91

February 22, 1999

Change over 1 year

+36.8%

vs October 27, 2025

Source: FRED, Federal Reserve Bank of St. Louis (FRED GASREGW). Retrieved November 10, 2026. Chart computed and drawn by UXS from the raw series. EIA weekly US average retail price of regular gasoline, all formulations, published by FRED. Prices are nominal, not adjusted for inflation. Download the data (CSV)

Year by year: Regular gasoline (US average)

Computed by UXS from the same data as the chart. Tap a column header to sort. * = year to date (latest data November 2, 2026).

Year	Regular gasoline (US average): last value	Change vs prior year	Year high	Year low
2026*	$4.15	+47.7%	$4.50	$2.78
2025	$2.81	-6.5%	$3.24	$2.81
2024	$3.01	-3.5%	$3.67	$3.01
2023	$3.12	+0.8%	$3.88	$3.05
2022	$3.09	-5.6%	$5.01	$3.09
2021	$3.27	+46.0%	$3.41	$2.25
2020	$2.24	-12.8%	$2.58	$1.77
2019	$2.57	+13.5%	$2.90	$2.24
2018	$2.27	-8.3%	$2.96	$2.27
2017	$2.47	+7.1%	$2.69	$2.26
2016	$2.31	+13.5%	$2.40	$1.72
2015	$2.03	-11.5%	$2.83	$2.03

1. Crude oil is about half the price. The EIA's breakdown shows crude oil averaged about 52% of the retail price of regular gasoline over 2016–2025, with refining, distribution and taxes making up the rest. A barrel holds 42 gallons, so every $1 change in the crude price is worth about 2.4 cents a gallon before any other costs. When WTI crude went from about $65 in late February 2026 to about $99 by March 20 and a peak of $114.58 on April 7, pump prices followed within weeks: the national average rose from about $3.02 at the start of March to about $4.45 in early May.

2. Taxes. The EIA lists the federal tax at 18.4 cents a gallon (18.3 cents excise plus a 0.1-cent storage-tank fee), and state taxes and fees averaged 33.55 cents in January 2026. Some states add sales taxes or local taxes. That is why prices differ so much from state to state, and why the same crude price leads to higher prices in some places.

3. Refining costs and profits. Refiners turn crude into gasoline, and their margins rise when refineries are offline for maintenance or outages, or when demand is strong. The EIA notes that some regions require special cleaner-burning blends, which cost more to make, and that demand usually rises in summer, generally pushing prices up.

4. Distribution and retail. Pipelines, terminals, ethanol blending and station operations add the final layer.

US gasoline and crude oil: yearly averages

Computed by UXS from FRED GASREGW (EIA weekly) and DCOILWTICO (EIA daily spot, excluding the negative April 2020 reading). The 2025 gasoline average matches the EIA's published $3.10. Tap a column header to sort.

Year	Regular gasoline ($/gal)	WTI crude ($/bbl)
2019	2.60	57.0
2020	2.17	39.5
2021	3.01	68.1
2022	3.95	94.9
2023	3.52	77.6
2024	3.30	76.6
2025	3.10	65.4
2026 (to early Nov)	3.87	87.1

Why "so high" right now. In early November 2026 gasoline was about $4.15, roughly $1.13 more than a year before, because WTI crude was about 60% more expensive than a year earlier ($99.64 a barrel on November 3, 2026 vs $61.79 on November 3, 2025). Prices were still below the June 2022 record of $5.006, when crude averaged about $95 for the year and refining margins were exceptionally high. For what drives the crude price itself, see what moves oil prices and what moves natural gas prices for a related energy market.

Can a president or government lower gas prices? Governments can affect them at the margin: releasing oil from strategic reserves, changing fuel taxes or blend rules, or influencing production. But crude is priced in a global market, so domestic policy rarely moves pump prices much for long.

Canada is the largest source of US crude imports, which ties oil to its currency; see why oil moves USD/CAD.

Natural gas is a separate market; see why it costs so much more in Europe than the US.

Some commodities depend on a single buyer; see iron ore and China steel demand.

Governments sometimes try to lower the crude part; see whether releasing the Strategic Petroleum Reserve can lower gas prices.

Ethanol links fuel and sugar markets, especially in Brazil; see how ethanol demand moves raw sugar.

For how much OPEC can push crude, see whether OPEC cuts actually raise oil prices for long.

Decision helper

Common mistakes

• Blaming one factor (taxes, a politician, oil companies) for a global price.
• Comparing nominal prices across decades without adjusting for inflation.
• Expecting pump prices to fall the same day crude falls.
• Forgetting summer blends and seasonal demand.

FAQ

Why are gas prices so high?

Mainly because crude oil rose sharply in 2026; crude is about half the pump price.

What is the average US gas price now?

$4.153 a gallon for regular on November 2, 2026, per EIA data.

What was the record US gas price?

A weekly average of $5.006 a gallon in June 2022.

How much tax is in a gallon of gas?

18.4 cents federal plus an average 33.55 cents in state taxes and fees as of January 2026.

How much does $10 more on oil add to gas?

About 24 cents a gallon, because a barrel holds 42 gallons.

Why are prices higher in summer?

Demand rises and some areas require costlier summer blends.