"Crude costs dominate, representing roughly 51% to 52% of the U.S. retail price. When the Strait of Hormuz disrupted roughly one-fifth of global oil and LNG flows during the 2026 Iran conflict, Asian physical crude surged toward $150 per barrel while WTI held near $100.72, insulated by U.S. shale output and Canadian and Mexican imports."
"Taxes are the single biggest differentiator globally. The U.S. total tax burden runs roughly 52 cents per gallon. The Netherlands charges the equivalent of $3.46 per gallon in excise alone, plus 21% VAT. Across Europe, taxes represent up to 60% of the final retail price."
"The U.S. national average rose to $3.58 per gallon at peak shock, modest compared to 50% spikes in the Philippines and Nigeria. That resilience reinforces the structural advantage U.S. refiners hold, with windfall margins on cheap domestic crude."
American drivers pay between $2.31 and $2.39 per gallon, while Hong Kong motorists face prices around $11.62. Crude costs account for 51% to 52% of U.S. retail prices. The 2026 Iran conflict disrupted oil flows, causing Asian crude prices to surge. U.S. refining margins were elevated, while taxes in the U.S. are significantly lower than in Europe. The EU's upcoming carbon policy will further increase European prices. U.S. refiners benefit from cheap domestic crude, with production expected to rise to 13.9 million barrels per day by 2027.
Read at 24/7 Wall St.
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