U.S. Gasoline Price Shock’s Roots Go Deeper Than Crude’s Surge
- The cost of crude oil makes up more than 60% of pump prices
- Oil executives are due to testify to Congress Wednesday
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America’s drivers are being squeezed at the pump, and the root cause is surging oil prices. But that’s not the whole story.
Gasoline prices rise and fall with the price of crude, though not always in sync or to the same extent. Add to that: taxes, refining costs, and distribution and marketing costs. On Wednesday, executives from six oil companies will testify before Congress to help provide clarity on the economics of the record-high prices. Here’s our breakdown: