Gasoline Gouge

While higher crude oil prices are partly why gasoline is so expensive, it’s only part of the story. The bigger reason is a lack of global refining capacity. Since Covid-19, about three million bbl/day of refining capacity has been permanently closed. As a result, the crack spread, or the amount of profit a refiner makes from turning a barrel of crude into gasoline has jumped from $17 historically to $50.