For those who have immigrated to the United States and own a car, there is some good news recently: the average gasoline price across the U.S. has fallen below 2 dollars/gallon, which is nearly half the price of gasoline in China. This decline in U.S. gas prices is related to the global crude oil oversupply that has caused prices to continue to fall. U.S. drivers can fully enjoy these low gas prices with peace of mind, and the good air quality in the U.S. has also created conditions for the reduction in gas prices.
The American Automobile Association believes that Americans have saved a total of 100 billion dollars in gasoline costs this year. On average, this is equivalent to a savings of 350 dollars per person, which is enough to buy a mid-to-high-end smartphone.
Why is refueling in the U.S. so cheap? Let us first look at the composition of retail gasoline prices.
The gas price reaching the end consumer includes the price of crude oil, fuel taxes, refinery costs and profits, transportation costs, and gas station costs and profits.
Let us look at fuel taxes again. U.S. fuel taxes are divided into federal and state taxes, which are used to build roads and bridges. The federal fuel tax has remained at 0.184 dollars per gallon since 1993. State taxes vary, with California having the highest state tax in the U.S. at 0.529 dollars per gallon, making the total fuel tax 0.713 dollars per gallon.
Excluding crude oil costs and fuel taxes, the current U.S. gas price is only about 0.5 dollars per gallon, which is the sum of the costs and profits of refineries, gas stations, and the transportation industry. This shows the high efficiency of U.S. oil refining and transportation, and the thin profit margins of gas stations.