Retail Gasoline Price.
In plain English
The retail gasoline price is the per-gallon cost you see at the pump. It is not just the price of oil; it stacks several layers: the cost of crude, the cost of refining it into gasoline, distribution and marketing, federal and state taxes, and the station's own margin. Because taxes and refining costs are fairly sticky, the pump price does not fall as fast as crude when oil drops, which is a common source of frustration for drivers.
01Why it matters
The pump price is one of the most visible costs in most budgets, and understanding its layers explains why it does not track oil dollar for dollar.
02The math, step by step
If crude is roughly half of a 3.50 dollar gallon, the other 1.75 comes from refining, distribution, taxes, and the station's margin, which is why a drop in oil only partly reaches the pump.
03What this is NOT
The retail gas price is NOT the price of crude. Crude is only part of it; refining, distribution, taxes, and margins make up the rest and keep pump prices from tracking oil exactly.