What Are The Components Of The Retail Price Of Diesel Fuel?
The cost to produce and deliver diesel fuel to consumers includes the costs of crude oil, refinery processing, marketing and distribution, and retail station operation. The retail pump price reflects these costs and the profits (and sometimes losses) of the refiners, marketers, distributors, and retail station owners. The relative share of these cost components to the retail price varies over time and among regions of the country. Figure 3 illustrates the percentage share for each major cost element of the national average retail price in 2006. The price on the pump also includes Federal, State, and local taxes. In 2006, Federal excise taxes were 24.4 cents per gallon and State excise taxes averaged about 21.8 cents per gallon.2 Some States and county and city governments levy additional taxes. The retail price also reflects local market conditions and factors such as the location and the marketing strategy of the owner. Some retail outlets are owned and operated by refiners, while oth
The cost to produce and deliver diesel to consumers includes the costs of crude oil, refinery processing, marketing and distribution, and retail station operation. The retail pump price reflects these costs and the profits (and sometimes losses) of the refiners, marketers, distributors, and retail station owners. The relative share of these cost components to the retail price varies over time and among regions of the country. Figure 3 illustrates the percentage share for each major cost element of the national average retail price in 2005. The price on the pump also includes Federal, State, and local taxes. In 2005, Federal excise taxes were 24.4 cents per gallon, and State excise taxes averaged about 21.6 cents per gallon.2 Some States and county and city governments levy additional taxes. The retail price also reflects local market conditions and factors such as the location and the marketing strategy of the owner. Some retail outlets are owned and operated by refiners, while others
