Elevated crack spreads and crude oil prices contribute to higher prices at the pump

What are crack spreads and why are they elevated?

Crack spreads are indicators of the profitability of refining crude oil into petroleum products such as gasoline and diesel.

One common crack spread is calculated by subtracting the spot market price of a gallon of crude oil from the wholesale price of a gallon of refined product.

Since May, the gasoline crack spread in New York Harbor has averaged about $1 per gallon (gal) higher than in 2025, when the crack spread peaked around 60 cents/gal.

Gasoline crack spreads are elevated primarily because of tight gasoline supplies globally.

Energy Information Administration, Gasoline and Diesel Fuel Update ; Bloomberg L.P.

Note: The data for the week ending September 5 are estimated based on data through September 3.

Refinery margin is calculated as the difference between the price of a gallon of wholesale gasoline at New York Harbor and the spot market price of a gallon of Brent crude oil.

Retail, distribution, and taxes captures retail margins, distribution costs, and federal and state taxes; it is calculated as the difference between the U.S.

average regular gasoline retail price and the wholesale gasoline price at New York Harbor.

Crude oil reflects the spot market price of a gallon of Brent crude oil.

What are crack spreads and why are they elevated?

Crack spreads are indicators of the profitability of refining crude oil into petroleum products such as gasoline and diesel.

One common crack spread is calculated by subtracting the spot market price of a gallon of crude oil from the wholesale price of a gallon of refined product.

Since May, the gasoline crack spread in New York Harbor has averaged about $1 per gallon (gal) higher than in 2025, when the crack spread peaked around 60 cents/gal.

Gasoline crack spreads are elevated primarily because of tight gasoline supplies globally.

Gasoline supplies are tight because of disruptions to global refining activities in Russia, China, and the Middle East.

Energy Information Administration, Gasoline and Diesel Fuel Update ; Bloomberg L.P.

Note: The data for the week ending September 5 are estimated based on data through September 3.

Refinery margin is calculated as the difference between the price of a gallon of wholesale gasoline at New York Harbor and the spot market price of a gallon of Brent crude oil.

Retail, distribution, and taxes captures retail margins, distribution costs, and federal and state taxes; it is calculated as the difference between the U.S.

average regular gasoline retail price and the wholesale gasoline price at New York Harbor.

Crude oil reflects the spot market price of a gallon of Brent crude oil.

What are crack spreads and why are they elevated?

Crack spreads are indicators of the profitability of refining crude oil into petroleum products such as gasoline and diesel.

One common crack spread is calculated by subtracting the spot market price of a gallon of crude oil from the wholesale price of a gallon of refined product.

Since May, the gasoline crack spread in New York Harbor has averaged about $1 per gallon (gal) higher than in 2025, when the crack spread peaked around 60 cents/gal.

Gasoline crack spreads are elevated primarily because of tight gasoline supplies globally.