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2024 Toyota Land Cruiser Returns to its Origin

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Last Updated on September 6, 2025 by Daily News Staff

SALT LAKE CITY /PRNewswire/ — Legends never die. Toyota’s off-road icon and longest-running nameplate is making a triumphant comeback to North America for the 2024 model year, returning to its rugged origin. Since its introduction in the U.S. market in 1958, the Land Cruiser evolved over the years from the legendary two-door models like the 40 Series with its fold-down front windshield, white roof, and rear jump seats to the capable yet fully loaded 200 Series, which was the last generation to be sold in the States and combined Land Cruiser’s unbreakable strength with premium luxury features. Now, Land Cruiser stays true to its heritage, returning as a high-quality off-roader at a more accessible price point that will take a wider range of customers on numerous backcountry adventures across the globe.  

2024 Toyota Land Cruiser
2024 Toyota Land Cruiser Returns to its Origin

Built on the TNGA-F global truck platform, the new Land Cruiser is designed, engineered, and tested to survive in the harshest of environments. For this new generation, Land Cruiser is exclusively available with the range-topping i-FORCE MAX hybrid powertrain producing 326 horsepower and 465 lb.-ft. of torque. It’s slightly smaller and narrower than the outgoing 200 Series model, making it nimbler on the trails, and Land Cruiser features off-road tech that has debuted on the newest generation of Toyota trucks. Limited to 5,000 units for the first two months of production, Land Cruiser will be offered in a First Edition grade that includes two new two-tone paint colors and additional off-road equipment.

“This icon belongs in our lineup,” says Toyota group vice president and general manager Dave Christ. “For 2024, Land Cruiser returns to its origin with a heritage-inspired design paired with the legendary capability and durability Land Cruiser is known for, and it will take even more customers on adventures across the globe as it has done for generations.”

The 2024 Land Cruiser will be built in Toyota Motor Corporation’s Tahara and Hino plants in Japan and arrive in the U.S. in the spring of 2024. Manufacturer’s suggested retail pricing will start in the mid-$50,000 range and be announced closer to its on-sale date. 

Back to its Origin

For decades, Land Cruiser has been known for its world-renowned capability as the staple of Toyota’s core values of quality, durability, and reliability. When Land Cruiser arrived in the U.S. in the late ’50s, Toyota sold only one unit in its first year. But then, when the 40 Series arrived, Land Cruiser became the best-selling Toyota in the U.S. for five years running. These early models featured solid front and rear axles on leaf springs, and the boxy look with a flat roof, short overhangs, and “TOYOTA” grilles became iconic. Soon after, though, customers wanted a bigger 4×4, and the Land Cruiser grew into larger station wagon models such as the 55 and 60 Series and ultimately lead to where the Land Cruiser left off in the U.S.: the 200 Series, a premium, full-size luxury off-road SUV.

Now, in its return to the U.S. market after a three-year hiatus, Land Cruiser utilizes the global TNGA-F body-on-frame platform. This new ladder frame allows for more rigidity in the chassis compared to the 200 Series model thanks to the use of high-strength steel with blanking and laser welds. Compared to the outgoing 200 Series, the new Land Cruiser is 4.4 inches narrower and 1.2 inches shorter for more off-road prowess.

Toyota’s North American-based studio CALTY Design Research worked closely with the global development team to establish the design direction for the new Land Cruiser. The design team used four key terms to lead the development: authentic, reliable, timeless, and professional. The all-new Land Cruiser is derived from a pure expression of form aligning with function. 

For the signature Land Cruiser look, the 1958 grade features the iconic round LED headlights and “TOYOTA” heritage grille, while Land Cruiser grades upgrade to slim, rectangular headlights reminiscent of the FJ62. A squared body profile resembles that of Land Cruisers of old, and the A pillar is pushed back not only to complement the look, but for better outward visibility on the trails. The front overhang is also decreased for greater approach.  

A newly developed double-wishbone front suspension with twin-tube shocks is paired with a multi-link rear suspension with coil springs. To provide improved steering feel and facilitate the incorporation of additional safety and convenience features, Land Cruiser will feature electric power steering, and all models feature 17-inch disc brakes front and rear. With a trailer hitch standard on all grades, Land Cruisers can tow up to 6,000 pounds.

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i-FORCE MAX Hybrid Standard

Land Cruiser’s new i-FORCE MAX hybrid powertrain comes standard on all grades and pairs a turbocharged 2.4-liter four-cylinder engine with a 48-hp electric motor integrated into an eight-speed transmission feeding off a 1.87-kWh NiMH battery pack that creates a total system output of 326 horsepower and 465 lb.-ft. of torque.  Fuel economy estimates will be announced closer to Land Cruiser’s on-sale date.

All Land Cruisers are equipped with a full-time four-wheel drive system with a center locking differential and an electronically controlled two-speed transfer case with high/low range. The system also features vehicle stability control (VSC) and an automatic limited-slip differential (Auto LSD). An electronic locking rear differential is standard on all Land Cruisers and can help split power 50/50 to the rear wheels for improved traction control on rough terrain.

An Off Road Icon

Land Cruiser has long been an off-road icon and this new generation continues its legacy. An all-new front stabilizer bar disconnect is standard on Land Cruiser and First Edition grades and increases flex at the push of a button. Overall, Land Cruiser has an approach angle up to 31.0 degrees and max departure to 22.0 degrees while breakover angle reaches 25.0 degrees. Ground clearance is up to 8.7 inches. For off-road protection, Land Cruiser customers can add rock rails and full coverage high strength steel skid plates. For off-road recovery, front tow/recovery hooks come standard. The Land Cruiser 1958 grade comes standard from the factory with fog lamps that will aid in overall visibility. The Land Cruiser grade gets upgraded color selectable RIGID fog lamps.

Multi-Terrain Select, which is now functional in both 4WD-High and 4WD-Low, is standard on the Land Cruiser grade and offers adjustable settings to help control wheel spin on a variety of terrain such as Mud, Dirt, and Sand. The CRAWL Control function is standard and acts as a low-speed, off-road cruise control allowing the driver to focus on steering while the system maintains one of five selectable speeds. Downhill Assist Control is another off-road feature that’s standard and it helps the driver navigate descents by limiting the speed of the vehicle. Drivers can view potential obstacles that are looming on the trail via the Multi-Terrain Monitor that can display crisply on the available 12.3-inch touchscreen, which comes standard on the Land Cruiser grade.

With Toyota Genuine Accessories and Associated Accessory Products (AAP), Land Cruiser is a blank canvas for customization. The AAP ecosystem will continue to evolve over time and currently includes over 100 accessories such as off-road recovery gear, rack attachment brackets for storage gear, outdoor sporting equipment carriers, and more. These products can also be conveniently rolled into customer’s monthly payments making accessorizing Land Cruiser through Toyota easier than ever.

A Connected Cruiser

With seating for up to five, Land Cruiser 1958 models feature black fabric seats and an 8.0-inch touchscreen displaying Toyota’s latest Audio Multimedia system that supports wireless Apple CarPlay and Android Auto compatibility. The new multimedia system also gives drivers the opportunity to access a wide range of enhanced connectivity and convenience features, including Over-the-Air (OTA) updates. The Land Cruiser grade has heated and ventilated SofTex-trimmed seats available in either black or Java and includes a 12.3-inch multimedia monitor and an available 14-speaker JBL premium sound system. Land Cruiser grade is also available with 4G connectivity for up to five devices that can turn the vehicle into an AT&T Hotspot. An available premium package includes leather-trimmed seats on the Land Cruiser Grade. The limited First Edition grade is exclusively available with leather-trimmed seats and a “First Edition” logo embossed on the door panels. A standard Qi wireless charging pad has enhanced power output, and dual USB-C charging ports are included in the front row and available for the rear passengers. There are also enhanced functional features while driving on rough trails including a palm rest for using the center touch screen and side knee pads.

A Smart Key System with push-button start is standard on all grades. With an active Remote Connect trial or subscription, an available Digital Key connects with compatible smartphones to allow vehicle entry, tailgate access, and vehicle starting (4G network dependent). The Digital Key can also be remotely shared with others to give more control over vehicle access rather than giving someone the physical key.

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Simple Grade Structure

Land Cruiser will be available in three grades: Land Cruiser 1958, Land Cruiser, and the limited run Land Cruiser First Edition. An available premium package adds power heated and ventilated leather-trimmed seats with lumbar support, a 14-speaker JBL audio system, head-up display, digital rearview mirror, moonroof, and more.

The 2024 Land Cruiser will be offered in seven exterior color choices: Ice Cap, Wind Chill Pearl, Underground, Black, Meteor Shower, Trail Dust, and Heritage Blue. The two-tone Trail Dust and Heritage Blue exterior colors feature a Grayscape roof.

 Land Cruiser 1958Land CruiserLand CruiserFirst Edition
PlatformTNGA-F
EngineTurbocharged 2.4-Liter Four-Cylinder
Hybrid Battery1.87-kWh NiMH Battery
Transmission8-speed Automatic Transmission
DrivetrainFull-time 4×4 with two-speed transfer case
Horsepower326 horsepower
Torque465 lb.-ft.
Towing6,000 lbs.
Wheelbase112.2 in.
Overall length193.7 in.
Overall width (+ mirrors)84.2 in.
Overall height73.2 in.
Ground Clearance8.7 in.
Running Ground Clearance8.3 in.
Approach/Breakover/Departure Angles30.0º/25º/22.0º31.0º/25.0º/22.0º31.0º/25.0º/22.0º
Wheels18-in. alloy18-in. alloy(20-in. opt)18-in. alloy
Tires245/70R18265/70R18 (265/60R20 opt)265/70R18
Land Cruiser 1958Land CruiserLand Cruiser First Edition
·   Rear locking differential·   CRAWL control·   “TOYOTA” heritage grille·   Round LED headlamps·   LED fog lamps·   18-in. alloy wheels with 245/70 all-
     season tires·   8.0-in. multimedia monitor·   6-speaker sound system·   Heated steering wheel·   Fabric/manual heated seats·   2400W AC inverter
Adds or replaces…·    Front stabilizer bar disconnect·    Rectangular LED headlamps·    RIGID color-selectable LED fog lamps·    18-in. alloy wheels with 265/70 all-
      season tires·    Multi-Terrain Select (MTS)·    Multi-Terrain Monitor (MTM)·    12.3-in. multimedia monitor·    10-speaker sound system·    SofTex heated/ventilated power seats
Adds or replaces…·     Roof rack·     Rock rails·     Front skid plate·     Round LED headlamps·    18-in. alloy wheels with 265/70 all-
      season tires·     Tailgate light·     Back door guard·     Mudflaps·     Unique-stitched key glove·     Leather heated/ventilated power seats

Toyota Safety Sense 3.0 Standard

All 2024 models come standard with Toyota Safety Sense 3.0, Toyota’s suite of active safety and convenience systems. TSS enhancements are made possible by system sensors with improved detection capability. This suite of features includes: 

  • Pre-Collision System with Pedestrian Detection 
  • Lane Departure Alert with Steering Assist
  • Full-Speed Range Dynamic Radar Cruise Control
  • Lane Tracing Assist
  • Road Sign Assist
  • Automatic High Beams
  • Proactive Driving Assist 

When system operating conditions are met, using the vehicle’s camera and radar, Proactive Driving Assist is designed to provide gentle braking into curves or gentle braking and/or steering to help support driving tasks such as distance control between a preceding vehicle, pedestrian, or bicyclist. Proactive Driving Assist is not a substitute for the Pre-Collision System and operates in different circumstances. 

The Toyota Safety Sense features have been enhanced for TSS 3.0: 

  • The Pre-Collision System with Pedestrian Detection has enhanced detection capabilities thanks to new system sensors. It receives enhanced intersection support with improved detection capability in certain circumstances. In addition to pedestrian and bicyclist detection, this system now includes the capability to detect a motorcyclist. 
  • Lane Departure Alert will now provide Steering Assist as well as enhanced lane recognition that includes detection of certain 3D objects, like guardrails, that may be used to help define the lane. 
  • Dynamic Radar Cruise Control will have Full-Speed Range capability and adds a fourth following distance setting, from the previously available three. Enhanced vehicle detection allows for the ability to detect more than one preceding vehicle, as well as vehicles in adjacent lanes. This helps the system to provide smoother, more natural speed adjustments, especially when the driver changes lanes. 
  • Lane Tracing Assist is new to Land Cruiser, and Dynamic Radar Cruise Control must be enabled for it to function. The system requires detectable lane markings to function. Like Lane Departure Alert, lane recognition is enhanced over prior TSS generations. In addition to lane centering, this system also helps provide more space between vehicles being passed in adjacent lanes. It works by offsetting the vehicles’ driving path with minor steering adjustments while keeping the vehicle within its lane. 
  • An Emergency Driving Stop System is a new function of Lane Tracing Assist. It’s designed to monitor the driver’s inputs, such as steering operation, to determine if they’re inattentive or non-responsive, such as during a medical emergency. This feature is designed to bring the vehicle to a stop if the driver doesn’t respond to alerts to take control. 
  • Road Sign Assist is also new to Land Cruiser. This system is designed to detect speed limit signs, stop signs, Do Not Enter signs, yield signs, and certain warning signs, and display an icon of the sign on the Multi-Information Display (MID). 

In addition to TSS 3.0, other standard features include Blind Spot Monitor (BSM), which is designed to help detect and warn you of vehicles approaching or positioned in the adjacent lanes and Rear Cross Traffic Alert (RCTA) for added peace of mind by helping to detect vehicles approaching from either side while backing out and alerting you with a visual and audible warning. Hill Start Assist Control (HAC) also comes standard. 

Beyond Zero Vision

As part of Toyota’s diverse approach to working toward a carbon neutral future, Land Cruiser is the latest hybrid offering in Toyota’s lineup to wear the Beyond Zero badge. Today, Toyota offers 16 electrified vehicles for customers to choose from. With twelve hybrid models, two plug-in hybrid models, the bZ4X battery electric vehicle, and the zero-emission hydrogen fuel cell Mirai, Toyota provides more choices than any other automaker for customers to reduce their carbon footprint.  

Limited Warranty 

Toyota’s 36-month/36,000 mile basic new-vehicle warranty applies to all components other than normal wear and maintenance items. Additional 60-month warranties cover the powertrain for 60,000 miles and against perforation from corrosion for 60 months with no mileage limitation. Hybrid-related components that require repairs needed to correct defects in materials or workmanship are covered for 8 years/100,000 miles, whichever comes first from original date of first use when sold as new. The hybrid battery is covered for 10 years/150,000 miles, whichever comes first, and is transferable across ownership. 

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The 2024 Land Cruiser comes with ToyotaCare, a plan covering normal factory-scheduled maintenance, for two years or 25,000 miles, whichever comes first, and 2 years, unlimited mileage of Roadside Assistance.

4Connected Services are dependent on network availability and other factors.

About Toyota 

Toyota (NYSE:TM) has been a part of the cultural fabric in the U.S. for more than 65 years, and is committed to advancing sustainable, next-generation mobility through our Toyota and Lexus brands, plus our nearly 1,500 dealerships.

Toyota directly employs more than 49,000 people in the U.S. who have contributed to the design, engineering, and assembly of more than 33 million cars and trucks at our nine manufacturing plants. By 2025, Toyota’s 10th plant in North Carolina will begin to manufacture automotive batteries for electrified vehicles. With more electrified vehicles on the road than any other automaker, Toyota currently offers 24 electrified options.

Through its Driving Possibilities initiative, the Toyota USA Foundation has committed $110 million to create innovative educational programs within, and in partnership with, historically underserved and diverse communities near the company’s 14 U.S. operating sites.

For more information about Toyota, visit www.ToyotaNewsroom.com

For customer inquiries, please call: 800-331-4331

SOURCE Toyota Motor North America

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The 2027 Jeep Wrangler Laredo Is Back — What That Means for Buyers in Arizona

Jeep unveiled the 2027 Jeep Wrangler Laredo, blending Southwest-inspired heritage styling with standard Xtreme 35 capability. Here’s what Arizona buyers should verify before ordering.

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Jeep is bringing back a familiar name with a very modern twist. In a July 12 PR Newswire release, the brand unveiled the 2027 Jeep Wrangler Laredo, describing it as a heritage-inspired trim that revives an iconic 1980s-era nameplate—then pairs that nostalgia with serious off-road hardware based on the Wrangler Willys.

The 2027 Jeep Wrangler Laredo
The 2027 Jeep Wrangler Laredo

For Arizona drivers, this one lands differently than it might in cooler climates. The Laredo’s headline features—a tan soft-top option, 35-inch tires, and a lifted stance—touch the daily realities of desert heat, freeway commuting, monsoon-season visibility, and weekend trail access. Here’s the Consumer Corner breakdown: what’s real, what to verify, and who this trim actually makes sense for.

The quick takeaway

The 2027 Jeep Wrangler Laredo is essentially a Willys-based Wrangler with the Xtreme 35 Package baked in, wrapped in a distinctive Southwest-themed design and a premium interior. Jeep says orders open later this month, and pricing starts at $1,995 over a Wrangler Willys with the Xtreme 35 Tire Package.

That last line matters: this isn’t a “cheap Wrangler.” It’s a value comparison against a specific build (Willys + Xtreme 35). If you were already planning that setup, the Laredo may be a relatively small step up for a lot of visual and interior differentiation.

What Jeep is highlighting (and what it means in plain English)

1) Standard Xtreme 35 Package: the capability is the point

Jeep says the Laredo includes the Xtreme 35 Package as standard equipment, including:

  • 35-inch BFGoodrich KO2 tires
  • 1-inch lift
  • Bronze beadlock-capable wheels

Consumer translation: this trim is not just decals. The tire size and lift change the stance, trail clearance, and replacement costs. If you like the look and you’ll actually use the traction/clearance, it’s a meaningful upgrade.

Arizona angle: 35-inch all-terrains can be great for dirt roads and rocky trails, but they can also mean more road noise and higher replacement costs. In extreme heat, tire condition matters—ask what the replacement set runs installed and how often you realistically drive on surfaces that justify the upgrade.

2) The tan soft-top is back (and the roof choice affects daily life)

Jeep is reintroducing the “highly coveted” tan soft-top. Roof options mentioned include:

  • Tan soft-top (heritage-inspired)
  • Sky One-touch powertop (four-door only)
  • Black hardtop (two-door and four-door)

Consumer translation: roof choice isn’t just aesthetics—it’s noise, heat management, convenience, and long-term wear.

Arizona angle: if you park outside in Phoenix-area sun, your roof choice affects cabin temperatureUV wear, and how quickly the interior feels like an oven. Before you commit:

  • Sit in one on a hot day if possible (or at least after it’s been outside)
  • Ask about warranty coverage for top materials and seals
  • Consider how often you’ll actually run top-down versus how often you’ll be fighting heat and glare

3) Southwest styling: you’re paying for a specific identity

Jeep leans hard into “American Southwest” cues:

  • Gobi accent grille
  • Laredo hood decals (center + side)
  • Bodyside decals and a rear lasso-style “4WD” decal
  • Bronze tow hooks and bronze-accented badging

Consumer translation: this is a trim for people who want their Wrangler to look like this from the factory—without aftermarket guesswork. If you’d delete the decals on day one, you’re probably not the target buyer.

Arizona angle: decals and exterior finishes live a harder life in intense sun. Ask about care guidance (and whether the dealer is pushing paint/graphics protection as an add-on you don’t need).

Inside the Laredo: premium touches (but confirm what’s truly standard)

Jeep says the cabin is built around a Bison Brown interior with:

  • Bison Brown Nappa leather seats with front heat and power adjust
  • Mayan Gold accent stitching
  • Exclusive Laredo badging, including a rear swing gate plaque with coordinates of Laredo, Texas
  • A subtle cowboy hat motif in HVAC pad prints

Consumer Corner note: “premium materials” can be real, but trims sometimes vary by package availability and dealer ordering. When you see the vehicle in person, verify:

  • Seat material and whether it’s true leather vs leather-trimmed surfaces
  • Exactly which seats are heated (and whether ventilation is offered)
  • Whether any interior elements are tied to optional packages

Arizona angle: leather and dark interiors can feel premium, but they also absorb heat. If you’re sensitive to hot seats and steering wheels, ask about:

  • Remote start availability (where applicable)
  • Sunshade options
  • Tint legality and pricing (and whether the dealer is bundling it)

The money question: what does “$1,995 over Willys + Xtreme 35” really mean?

Jeep’s pricing line is smart marketing because it anchors the Laredo as a modest step up—if you were already buying that exact Willys configuration.

Before you decide it’s a bargain, ask the dealer for two itemized build quotes:

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  1. Wrangler Willys + Xtreme 35 Tire Package (as close as possible to the referenced build)
  2. Wrangler Laredo (same drivetrain/doors where possible)

Then compare:

  • Out-the-door price (tax, title, registration, doc fees)
  • Dealer add-ons (tint, nitrogen, paint protection, wheel locks)
  • Insurance quote by VIN/trim (35-inch tires and higher replacement costs can affect premiums)

Arizona angle: don’t skip the insurance quote. Larger tires, higher replacement costs, and theft/vandalism risk can shift premiums. Get a quote using the exact trim before you fall in love with the look.

Who the 2027 Jeep Wrangler Laredo is best for

Best fit

  • You already want a Willys + 35-inch tire Wrangler and prefer a factory-finished heritage look
  • You care about distinctive styling and plan to keep the vehicle long enough for that identity to matter
  • You want something that feels “special edition” without going full custom
  • You do Arizona-style weekends: desert roads, trailheads, camping routes—where clearance and traction actually matter

Maybe not

  • You’re shopping for the lowest-cost Wrangler payment
  • You don’t want larger tires (replacement cost and ride feel can be different)
  • You’d remove the graphics or prefer a clean, minimal exterior

Consumer Corner: what to watch for before you sign

Use this checklist when the Laredo hits lots.

  • Confirm what’s standard: Xtreme 35 equipment, roof type, interior features
  • Ask about tire replacement cost: 35-inch KO2s aren’t economy tires
  • Check towing details: Jeep mentions an available trailer hitch and up to 3,500 lbs towing—confirm your exact configuration
  • Verify roof options by door count: Sky One-touch is four-door only
  • Get an out-the-door quote in writing: include add-ons and “market adjustment” if any
  • Test daily comfort: cabin noise, seat comfort, visibility, parking practicality
  • Arizona reality check: where will it park (garage vs outside), and how will you manage heat, glare, and interior wear?

Bottom line

The 2027 Jeep Wrangler Laredo is a nostalgia-forward trim that looks designed to be instantly recognizable—and it backs up the look with real off-road hardware via the standard Xtreme 35 Package. For buyers already leaning Willys + 35s, the Laredo’s pricing claim suggests it could be a relatively efficient way to get a more distinctive exterior and a richer interior without piecing together aftermarket parts.

For everyone else, treat it like any special trim: verify what’s standard, price it against the closest comparable build, and make sure the “icon” factor doesn’t distract from the monthly payment and long-term ownership costs—especially in Arizona, where heat and sun can turn small comfort details into daily dealbreakers.

Follow Jeep and company news and video on:
Media website: media.stellantisnorthamerica.com
Jeep brand: jeep.com
Facebook: facebook.com/jeep
Instagram: @jeep
X: @jeep
LinkedIn: linkedin.com/company/jeep
YouTube: youtube.com/thejeepchannel or youtube.com/StellantisNA

SOURCE Stellantis/ PR Newswire

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Consumer Corner

What’s in the price of a gallon of gas?

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A person stands between a gas pump and a vehicle, with gas prices of $4.29 for a gallon of regular displayed in the background.
Gas prices were well over $4 a gallon on April 28, 2026, in Brooklyn, N.Y. Spencer Platt/Getty Images

Robert I. Harris, Georgia Institute of Technology

The U.S. Energy Information Administration expects nationwide retail gasoline prices to average near US$4.30 a gallon for April 2026 – the highest monthly average of the year. The political response has been familiar. Georgia has suspended its state gas tax, other states are weighing their own tax holidays, and the White House has issued a temporary waiver of a law known as the Jones Act in hopes of moving more domestic fuel to East Coast ports.

As an energy economist, I am often asked about what contributes to gas prices and what different policies can do to affect them.

The price of a retail gallon of gas is the sum of four things: the cost of crude oil, refining, distribution and marketing, and taxes.

In nationwide figures from January 2026, crude oil accounted for about 51% of the pump price, refining roughly 20%, distribution and marketing about 11% and taxes about 18%. That mix shifts with conditions: When crude oil prices spike, that can drive more than 60% of the price; when the price drops, taxes and logistics are larger shares of the cost.

Crude oil is the biggest ingredient

Because the price of crude oil is the largest element, most of the price at the pump is derived from the global oil market.

Usually, big swings in crude prices come mainly from shifts in global demand and expectations – not from supply disruptions, according to widely cited research in 2009 by the economist Lutz Kilian.

But what is happening in early 2026 with the war in Iran is one of the exceptions: a classic supply shock. Severe disruptions to shipping through the Strait of Hormuz and attacks on Middle East oil infrastructure have taken millions of barrels a day off the global market.

Most drivers generally can’t quickly reduce how much they drive or how much gas they use when prices rise, so gasoline demand doesn’t change much in the short run. That means a jump in crude costs tends to result in people paying more rather than driving less.

Refining, regulations and the California puzzle

Refining turns crude into gasoline at industrial scale. The U.S. doesn’t have a single gasoline market, though. Roughly a quarter of U.S. gasoline is a cleaner-burning blend of petroleum-derived chemicals called “reformulated gasoline,” which is required in urban areas across 17 states and the District of Columbia to reduce smog.

California uses an even stricter formulation that few out-of-state refineries make. California is also geographically isolated: No pipelines bring gasoline in from other U.S. refining regions.

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California’s gasoline prices have long run above the national average, explained in part by higher state taxes and stricter environmental rules. But since a refinery fire in Torrance, California, in 2015 reduced production capacity, the state’s prices have been about 20 to 30 cents a gallon higher than what those factors would indicate.

Energy economist and University of California, Berkeley, professor Severin Borenstein has called this the “mystery gasoline surcharge” and attributes it to the fact that there isn’t as much competition between refineries or gas stations in California as in other states. California’s own Division of Petroleum Market Oversight says the surcharge cost the state’s drivers about $59 billion from 2015 to 2024. It’s not exactly clear who is getting that money, but it could be gas stations themselves or refineries, through complex contracts with gas stations.

A person stands near a long metal truck in front of a gas station.
A tanker truck delivers fuel to a gas station. AP Photo/Erin Hooley

Getting the gas into your car

The distribution and marketing category covers the costs of everything involved in getting the gasoline from the refinery gate to your tank.

Gasoline moves by pipeline, ship, rail and truck to wholesale terminals, and then by local delivery truck to service stations.

At the retailer’s end, the key factors are station rent and labor, the cost to buy gasoline in bulk to be able to sell it, credit card fees of as much as 6 to 10 cents a gallon at current prices, and franchise fees paid to the national brand, such as Sunoco or ExxonMobil, for permission to put their branding on the gas station.

Most gas station operators net only a few cents per gallon on fuel itself – which is why many gas stations are really convenience stores with pumps out front. Borenstein and some of his collaborators have also documented that retail gas prices rise quickly when wholesale costs climb but fall slowly when wholesale costs drop.

The question of gas tax holidays

The federal government charges a tax on fuel, of 18.4 cents a gallon for gasoline and 24.3 cents a gallon for diesel. States charge their own taxes, ranging from 70.9 cents a gallon for gas in California to 8.95 cents in Alaska.

When gas prices rise, many politicians start talking about temporarily suspending their state’s gas tax. That does reduce prices, but not as much as politicians – or consumers – might hope. Research on past gas tax holidays has found that consumers get about 79% of the reduction in gas taxes. That means oil companies and fuel retailers keep about one-fifth of the tax cut for themselves rather than passing that savings to the public.

Gas tax holidays also reduce funding for what the taxes are designed to pay for, typically roads and bridges. That pushes road and bridge upkeep costs onto future drivers and general taxpayers.

There is an additional problem, too: Taxes on gasoline are supposed to charge drivers for some of the costs their driving imposes on everyone else – carbon emissions, local air pollution, congestion and crashes. But Borenstein has found that U.S. fuel tax levels are already far below the true cost to society. Removing the tax on drivers effectively raises the costs for everyone else.

A fisherman holds a pole in the foreground as an oil tanker sails by at sunset
Suspending the Jones Act allows foreign-based oil tankers to sail between U.S. ports. AP Photo/Eric Gay

The Jones Act: A small number that adds up

The 1920 Jones Act is a federal law that requires cargo moving between U.S. ports to travel on vessels built and registered in the U.S., owned by U.S. citizens, and crewed primarily by U.S. citizens and permanent residents. Of the world’s 7,500 oil tankers, only 54 meet this requirement. Only 43 of these can transport refined fuels such as gasoline.

So, despite significant refining capacity on the Gulf Coast, some U.S. gasoline is exported overseas even as the Northeast imports fuel, in part reflecting the relatively high cost of moving fuel between U.S. ports.

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Economists Ryan Kellogg and Rich Sweeney estimate that the law raises East Coast gasoline prices by about a penny and a half per gallon on average, costing drivers roughly $770 million a year. In light of the war’s effect on gas prices, the Trump administration has temporarily suspended the Jones Act requirements – an action more commonly taken when hurricanes knock out Gulf Coast refineries and pipeline networks.

What moves the number

The result of all these factors is that the price that drivers see at the pump mostly reflects the global price of crude, plus a stack of domestic costs, only some of which are inefficient.

Tax holidays give a partial, short-lived rebate. Jones Act waivers trim pennies, though permanent repeal may cause more fundamental changes, such as reduced rail and truck transport of all goods, which could lower costs, emissions and infrastructure damage associated with cargo transportation. Harmonizing fuel blends across states and seasons may lower prices somewhat, but likely at the expense of increased emissions.

Ultimately, the best protection against oil price shocks is a more efficient gas-burning vehicle, or one that doesn’t burn gasoline at all. In the meantime, the best I can offer as an economist is clarity about what that $4.30 actually buys.

Robert I. Harris, Assistant Professor of Economics, Georgia Institute of Technology

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Consumer Corner

Driving in Wet Summer Conditions: The Impact of Worn Tires on Stopping Distance

Wet Summer Conditions: As drivers prepare for summer road trips, navigating seasonal weather with worn tires can often be an overlooked safety concern.

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Wet Summer Conditions: As drivers prepare for summer road trips, navigating seasonal weather with worn tires can often be an overlooked safety concern.

Driving in Wet Summer Conditions: The Impact of Worn Tires on Stopping Distance

(Feature Impact) As drivers prepare for summer road trips, navigating seasonal weather with worn tires can often be an overlooked safety concern. For those living in regions that experience seasonal storms and heavy rainfall, ensuring their vehicle’s tires are properly maintained can mean the difference between stopping safely or being involved in an accident.

As tread depth decreases, tires’ ability to maintain grip on wet pavement diminishes, increasing both stopping distances and the likelihood of losing control. In fact, on roads with light rain is where the Federal Highway Administration reports 77% of weather-related crashes occur.

New testing revealed worn tires (approximately 4/32-inch tread depth) required 30-45% more stopping distance – equating to 44-67 additional feet, depending on the tire model – to bring an average car or sedan to a full stop when braking. During moderate and heavy rainfall, vehicles equipped with worn tires required more than 140 additional feet to stop – nearly half the length of a football field. This data comes from water depth stopping-distance testing performed from 60 miles per hour at Treadwell Research Park on behalf of Discount Tire, a leading independent retailer of tires and wheels with more than 1,275 stores in 40 states.

Summer weather can be unpredictable and with the chance of sudden storms expected this time of year, drivers should take extra precautions to ensure their tires can stop safely in wet conditions.

Drivers can use tools like Treadwell, Discount Tire’s online tire recommendation tool, to compare stopping distances of popular tire models in new and worn conditions. The tool evaluates tire options based on vehicle type, driving habits and local conditions – as well as decades of data and independent testing results – to provide recommendations based on each driver’s unique needs.

Before hitting the road, consider these expert tips:

Monitor Tire Tread Depth

Tread depth plays a critical role in wet-weather traction and stopping performance. Drivers can perform a quick tread check at home using a penny. Insert the penny upside down into a tread groove; if the top of President Lincoln’s head is visible, it’s time to replace the tire. If you’re not sure, head to a local tire retailer to have them check for you.

Know the Tires’ Age

As rubber compounds age, the rubber becomes harder and more susceptible to cracking and failure. To check a tire’s age at home, look at the DOT number stamped on its sidewall. Experts typically recommend replacing tires that are 6 years old or older, depending on condition and manufacturer guidance.

Rotate Tires on Schedule

Tires should be rotated every 6,000 miles, or earlier if uneven wear develops. Routine tire rotations help promote even wear and maximize tire life.

Check Tire Pressure Regularly

Tire pressure should be checked at least once a month when tires are cool, particularly before any long road trips, because ambient temperature changes as well as the impacts and pressures of bumps and turns can affect inflation levels. Underinflated tires can contribute to poor handling, excessive wear, reduced fuel efficiency and increased stress on the tires due to overloading.

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To locate a neighborhood tire retailer near you to save on tires, wheels or windshield wipers, visit DiscountTire.com.

Photo courtesy of Shutterstock collect?v=1&tid=UA 482330 7&cid=1955551e 1975 5e52 0cdb 8516071094cd&sc=start&t=pageview&dl=http%3A%2F%2Ftrack.familyfeatures track

    

SOURCE:
Discount Tire

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