"When you buy gas at the pump, you're covering more than the cost of crude oil. You're also paying for every step in the process, including refineries, wholesalers, taxes, and the markup your local gas station adds. Even so, crude oil has the biggest influence on what you pay, often making up more than half the cost per gallon."
"If an emergency hits, the U.S. keeps a backup supply of crude oil called the Strategic Petroleum Reserve. It's mainly there to protect energy security during crises, such as sanctions, catastrophic storm damage, even war. It can also help cushion the blow when supply shocks send prices soaring."
"When oil prices jump, gas prices usually climb right along with them. But when oil falls, gas prices often slip much more slowly-a pattern sometimes called "rockets and feathers.""
Oil trading at $102.98 per barrel reflects complex market forces driven primarily by supply and demand. Gas pump prices include crude oil costs plus refining, wholesale, taxes, and station markups, with crude oil typically representing over half the final price. Gas prices rise quickly with oil increases but fall slowly when oil drops, a pattern called "rockets and feathers." The U.S. Strategic Petroleum Reserve serves as emergency backup during crises like wars or sanctions, providing short-term consumer relief rather than solving long-term issues. Oil and natural gas prices interconnect; rising oil costs can increase natural gas demand as industries substitute fuels.
Read at Fortune
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