Consumer Corner
What’s in the price of a gallon of gas?
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.
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.
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.
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.
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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Family
The House That Hosts: When Your Home Becomes Your Holiday Entertaining Partner
The House That Hosts: There’s a special pleasure in opening your home for the holidays to share the menu you’ve imagined, welcome guests to the glow of a room ready for company and enjoy the anticipation of familiar faces at the door. This year, make sure the house itself can lend a hand.
The House That Hosts: When Your Home Becomes Your Holiday Entertaining Partner
(Feature Impact) There’s a special pleasure in opening your home for the holidays to share the menu you’ve imagined, welcome guests to the glow of a room ready for company and enjoy the anticipation of familiar faces at the door. Every detail is an opportunity to make the loved ones you’ve invited feel especially welcome.
This year, make sure the house itself can lend a hand.
From the kitchen to the living room to the guest bathroom, residential technology offers new ways to turn a host’s imagination into a memorable experience. The best innovations don’t take over the occasion. They help the person bringing everyone together make it extraordinary.
Nor does a home need an elaborate network of connected gadgets. A few well-chosen technologies can make a difference. Explore these ideas from the bathroom design and technology experts at TOTO to level up the different hosting areas of your home as you prepare to gather with family and friends this holiday season.
The Kitchen: Bringing Something Extraordinary to the Table
The holidays invite a little culinary ambition, and today’s kitchens are borrowing a few tricks from professional chefs.
Imagine presenting a beef tenderloin cooked to a perfect rosy pink from edge to edge, thanks to the precision of sous vide cooking. Or bringing a platter of roasted root vegetables to the table, their edges beautifully caramelized and their centers tender, prepared in a steam-convection oven. On an induction cooktop, precise, responsive heat helps turn fresh mushrooms into a golden, savory accompaniment.
These technologies put sophisticated techniques within reach of adventurous home cooks, opening the door to new preparations and dishes worthy of special occasions. Experiment with new flavors and rich cuisines that fill your home with enticing aromas and your guests with awe at the first bite.
Nothing says “happy holidays” quite like watching guests discover what you’ve created for them.
The Living Area: Setting the Stage for Connection
Holiday gatherings have a rhythm all their own. The first arrivals are greeted with excitement, conversations pick up where they left off months (or years) prior, and before long, the room is filled with laughter and the pleasure of being together.
Today’s smart lighting systems allow hosts to create and schedule scenes that shift from the sparkle of a festive welcome to the softer, golden glow of an intimate evening. Multiroom wireless audio systems can bring lively music into the kitchen while keeping it a gentle accompaniment to conversation in the living area. Digital art displays can turn a television screen into a gallery of artwork chosen to complement the celebration, bringing holidays past to life as loved ones mingle in the present.
Successful holiday entertainment engages people not merely as observers, but participants. A short film could start an inspiring conversation, the right music might get people dancing and atmospheric visual-audio experiences, like a crackling fireplace or soft snowstorm, can create a relaxing seasonal backdrop for shared activities.
With the atmosphere changing quietly in the background, no one needs to interrupt a favorite story to adjust the lights or lower the music. The host can simply enjoy the company they’ve brought together.
The Bathroom: The Art of Personal Comfort
The most gracious hosts think beyond the rooms where guests gather. Fresh towels, fragrant soaps and a few unexpected comforts can make the guest bathroom feel every bit as welcoming as the rest of the home.
Technology adds a new dimension to that hospitality. Consider a TOTO WASHLET bidet seat, which offers the welcome warmth of a heated seat, the refreshing pleasure of warm-water cleansing and the soothing comfort of warm-air drying. It’s an unexpected luxury that makes an everyday experience feel special.
Hosts can choose an option that complements their home’s character. The S2 offers inviting simplicity with convenient side-panel controls. The sleek S5 pairs contemporary elegance with a wireless remote. Meanwhile, the S7A adds a touch of theater with a lid that opens automatically, a softly glowing nightlight and personalized cleansing settings.
Even the housekeeping benefits from a little ingenuity through automatic PREMIST and EWATER+: One mists the toilet bowl before use to help keep it cleaner, while the other cleans the cleansing wand and, on select models, the bowl itself with electrolyzed water.
It’s another way a thoughtful host can anticipate guests’ needs and make them feel wonderfully welcome.
Long after the last guest has departed, what lingers isn’t the sophistication of the house. It’s the meal that inspired compliments, the conversations no one wanted to end and the little surprises that made everyone feel at home.
Those are the moments that make holiday entertaining special. Behind each one is a host whose warmth, creativity and attention to detail made it possible, with a little help from the house. Explore more sophisticated bathroom upgrade ideas for the holidays and beyond at TOTOUSA.com.
Photo courtesy of Shutterstock (holiday table)
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TOTO
home improvement
Easy Furniture Upcycling Projects You Can Do in a Weekend
Easy Furniture Upcycling Projects: Giving secondhand furniture a new life is a creative, satisfying and budget-friendly way to add personality to your home. Next time you’re in the mood to spend time working with your hands, try these simple DIY furniture upcycling ideas.
Easy Furniture Upcycling Projects You Can Do in a Weekend
(Feature Impact) Giving secondhand furniture a new life is a creative, satisfying and budget-friendly way to add personality to your home. Upcycling doesn’t have to be complicated or expensive – all it takes is a little imagination, some basic supplies and a free weekend.
Next time you’re in the mood to spend time working with your hands, try these simple DIY furniture upcycling ideas.
Give a Worn Dresser a Fresh Look
Dressers have a way of accumulating scuffs and scratches over time, but it doesn’t take much to refresh their look. Clean the surfaces, sand away any rough spots then apply a fresh coat of furniture paint. To turn it into a stylish statement piece, choose a classy, on-trend color like sage green, deep navy or a warm neutral and replace the drawer pulls with modern hardware to match.
Transform an Old Coffee Table
The coffee table is a natural centerpiece of your living room, so give it an update that fits your preferred aesthetic. Sand it smooth, choose a new wood stain for a more natural look or paint it to match or create contrast with your walls and seating. Adding a protective clear coat can help the surface withstand everyday use and look new for longer.
Turn Wooden Chairs into Stylish Accent Pieces
If you have a collection of mismatched or worn-out wooden chairs around the house, try your hand at refurbishing instead of replacing them. Give them a good wash, repair any broken rungs, update the seats with fresh fabric or new cushions or unleash your inner artist by giving the chairs fun new designs with paint or peel-and-stick contact paper. If they aren’t a good fit for your main dining area, use the chairs as porch decorations or extra seating during parties.
Repurpose an Old Bookshelf
Bookshelves don’t just have to be for books. Give it a fresh design using paint or decorative wallpaper then transform it into a display cabinet, pantry organizer, entryway cubby for shoes and school supplies or whatever else your imagination sparks. Stave off clutter by adding visually appealing bins or baskets to help the shelves stay clean and organized.
Create a Unique Side Table
You can turn a variety of old furniture into side tables, from nightstands and end tables to stools and chairs with the backs removed. Consider adding decorative trim, stenciled designs, patterned tabletops or vibrant paint colors then give the finished table a new life as a plant display, bedside stand or porch accent piece.
Discover more home, lifestyle and crafting ideas at eLivingtoday.com.
Photo courtesy of Shutterstock
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Automotive
2027 Toyota Tundra Adds Trailhunter Package and Updated Technology
The 2027 Toyota Tundra adds a Trailhunter package, refreshed styling and a standard 14-inch touchscreen. Starting MSRP is $42,890.
Last Updated on November 7, 2026 by Daily News Staff
PLANO, Texas — Toyota is updating the 2027 Tundra with refreshed exterior styling, a new Trailhunter package and additional technology for its full-size pickup lineup.
2027 Toyota Tundra: Trailhunter Package and Tech Updates
Based on the SR5 grade, the Trailhunter package adds Old Man Emu suspension, Michelin all-terrain tires, front recovery hooks and extra underbody protection. A locking rear differential, Multi-Terrain Select and Crawl Control help drivers navigate challenging terrain, while bronze-colored wheels distinguish the package.
The TRD Pro receives newly designed, adjustable FOX Q3S shocks, standard red tow hooks and a new Honeycomb paint option.
Inside, a 14-inch multimedia touchscreen becomes standard. Toyota also adds a built-in drive recorder and makes Toyota Safety Sense 4.0 standard across the lineup. Gas and i-FORCE MAX hybrid powertrains remain available.
Toyota lists the 2027 Tundra with a starting MSRP of $42,890. Buyers should check destination charges, options and dealer pricing when comparing total costs.
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