The primary use for gasoline is in automobiles and light trucks. Gasoline also fuels boats, recreational vehicles, and various farm and other equipment. While gasoline is produced year-round, extra volumes are made in time for the summer driving season. Gasoline is delivered from oil refineries mainly through pipelines to a massive distribution chain serving 176,000 retail gasoline stations throughout the United States. Each grade has a different octane level.
Price levels vary by grade, but the price differential between grades is generally constant.
The cost to produce and deliver gasoline to consumers includes the cost of crude oil to refiners, refinery processing costs, marketing and distribution costs, and, finally, the retail station costs and taxes. The share of the retail price of regular grade gasoline that crude oil costs represent varies somewhat over time and among regions. What Do We Pay for in a Gallon of Regular Grade Gasoline Federal, State, and local taxes are a large component of the retail price of gasoline. Within this national average, Federal excise taxes are 18.4 cents per gallon and State excise taxes average 19.96 cents per gallon. Also, seven States levy additional State sales taxes, some of which are applied to the Federal and State excise taxes.