US retail gasoline prices hit $1.120 per liter on July 16, 2026

US retail gasoline prices hit $1.120 per liter on July 16, 2026

Retail gasoline prices in the United States reached $1.120 per liter on July 16, 2026, according to data from DailyFuels. This price, which includes all active subsidies and taxes, places U.S. Gasoline 23.4% below the global average of $1.463 per liter.

Diesel prices in the U.S. Were higher, reaching $1.270 per liter at retail. While diesel generally follows global crude oil benchmarks, it can diverge from gasoline prices due to differences in taxes, logistics costs, and local refinery capacity.

The cost of fuel is heavily influenced by crude oil, which accounts for about 50% of the retail price. Other contributing factors include refining costs at about 15%, taxes at about 25%, and distribution and marketing at about 10%. For those using electric vehicles, the cost to charge was $0.203 per kWh as of July 16, 2026.

On the global market, the Brent benchmark for oil reached $84.64 per barrel by 5:30 a.m. Eastern Time on July 16, 2026. This represents a decrease of $1.28 from the previous morning, though the price remains $15.38 higher than it was one year prior.

Regional Variations and Tax Impact

Fuel costs vary significantly across different U.S. Regions. The West Coast typically sees the highest prices, driven by limited refinery capacity, higher state taxes, and stricter fuel standards. California, for example, requires a special low-emission gasoline blend and imposes state fuel taxes exceeding 70 cents per gallon.

In contrast, states such as Kansas and Oklahoma maintain some of the lowest taxes in the country, around 20 cents per gallon, and benefit from their proximity to refineries on the Gulf Coast. Other high-tax areas include Pennsylvania, where the state fuel tax exceeds 58 cents per gallon.

Every gallon of gasoline sold in the U.S. Includes a federal excise tax of 18.4 cents, while diesel carries a federal tax of 24.4 cents. When combined with varying state taxes, the average total tax adds roughly 51 cents per gallon to the national price.

Economic Drivers and Market Volatility

The U.S. Benefits from domestic oil and gas production, which helps dampen fuel prices by reducing reliance on imports. The accessibility of shale oil further stabilizes prices by increasing the available supply.

However, prices remain sensitive to several volatile factors:

• Seasonal Demand: Prices often rise in the spring as refineries transition to more expensive summer-blend gasoline, required by the EPA from June through September. Costs typically ease in the fall and winter when demand drops and cheaper winter-blend fuel is used.
• Global Events: Decisions by OPEC+, geopolitical tensions, and U.S. Inventory data released weekly by the Energy Information Administration (EIA) act as primary catalysts for price fluctuations.
• The "Rockets and Feathers" Effect: Increases in crude oil prices usually translate quickly to pump prices, while price declines often result in slower, delayed drops for consumers.

Market volatility is also tied to government policy. In 2025, the Trump administration reversed policies from the Biden administration by reopening more than 1.5 million acres in the Coastal Plain of the Arctic National Wildlife Refuge for oil and gas leasing.

Industrial Metrics and Profitability

Refineries and energy generators use specific metrics to track profitability. Refineries monitor the "crack spread," the difference between the purchase price of crude oil and the selling price of finished products like gasoline. A common measure is the 3:2:1 crack spread, which approximates the yield of two barrels of gasoline and one barrel of distillate fuel for every three barrels of crude processed.

Similarly, natural gas-fired electric generators use the "spark spread" to estimate profitability. This is the difference between the price received for electricity and the cost of the natural gas used to produce it. These spreads are generally more volatile than petroleum crack spreads due to fluctuations in wholesale electric power prices.

For consumers, the impact of these costs is felt in the broader economy. Rising oil prices often lead to increased costs for everyday items due to the higher logistics and shipping expenses required to move products from farms and warehouses to store shelves.

To mitigate extreme price spikes or supply disruptions caused by war or natural disasters, the U.S. Maintains the Strategic Petroleum Reserve as an immediate safety net.