this post was submitted on 29 May 2026
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Why is your fuel so cheap??
There was a Planet Money episode that broke down where the $4/gallon went in 2022:
$2.40 for the price of crude oil when priced at $100/barrel.
$0.65 to the refiner that turns crude oil into gasoline (this was the prevailing spread in 2022, maybe different now).
$0.184 in federal taxes
$0.30 in state taxes
$0.20 to $0.50 for transportation from the refiner to the actual retail station.
Remainder is for the retailer (usually about $0.30 but fluctuates wildly).
That's how it is in the U.S. In other countries, it might be higher taxes, higher cost of refining, higher costs of transportation from the refiner, and higher margins for the retailer.
Because the US is the largest exporter of petroleum products in the world.
Norway exports far more than they use, and petrol prices there are among the highest in the world.
That is a policy decision. In places like Saudi Arabia, gas is cheaper than water.
Norway, correctly, invested more into public transit and EVs, and high gas prices encourage that.
US fuel is heavily subsidized compared to the rest of the world.
And assholes, but I saw a pack of hotdogs for 10 bucks today here in Oklahoma
I was thinking that. Hot fuck is that cheap.
I can't tell if you're from outside the US, or from California.
Ha. But am outside, and an online calculator says the price here converts to $9.08 a gallon for diesel. And that's cheaper than it's been recently.
I guess there has to be something positive about the country.
Low taxes, high production, and government corn subsidies.
Probably before VAT.
Nope. Gas pumps are one of the only places in the US where the price as displayed includes taxes.
Because otherwise it would just be confusing? So letβs have two systems instead.
I mean if the US could get away with a more confusing system it would