Oil only accounts for half the cost of a gallon of gas. Here's where the rest comes from.

March 15, 2026

TL;DR

The Iran war has directly impacted U.S. gasoline prices, increasing them by an average of 60 cents since February 28.
Crude oil is the biggest factor in gas prices, accounting for 51% of the cost per gallon.
Domestic gas prices are more closely tied to the international Brent crude benchmark than the U.S. West Texas Intermediate (WTI) benchmark.
Refining crude oil into gasoline accounts for 20% of the price, while marketing and distribution add 11%.
State and federal taxes make up the remainder, with federal tax at 18.4 cents and state taxes averaging about 34 cents per gallon.
Seasonal changes, such as the shift to more expensive summer-blend gasoline and increased demand, also influence prices.

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