DLNews Biz:

Recently, a prominent political figure proclaimed that gasoline prices had plummeted to $1.98 per gallon, heralding it as the lowest in years.

The Reality:
While it's true that the wholesale price of gasoline—specifically, the Reformulated Gasoline Blendstock for Oxygen Blending (RBOB)—briefly touched $1.98 per gallon in April, this figure doesn't reflect what consumers pay at the pump. RBOB prices are determined on the New York Mercantile Exchange and represent unblended gasoline that hasn't yet been mixed with ethanol or transported to gas stations. After blending, taxes, transportation, and retail markups are added, the price at the pump is typically over a dollar higher than the wholesale price. 

Current Gasoline Prices Across the U.S.:
As of May 6, 2025, the national average for a gallon of regular unleaded gasoline stands at $3.158. Prices vary by region, influenced by factors like state taxes, transportation costs, and local demand. Here's a snapshot:(FingerLakes1)

• California: $4.78 per gallon
• Hawaii: $4.49 per gallon
• Washington: $4.30 per gallon
• Texas: $2.65 per gallon
• Mississippi: $2.65 per gallon
• Louisiana: $2.65 per gallon

(AAA Fuel Prices)

Why the Discrepancy?
The difference between wholesale and retail gasoline prices arises from several factors:

1. Ethanol Blending: RBOB gasoline must be blended with ethanol before it's suitable for consumer use.
2. Transportation and Distribution: Moving gasoline from refineries to distribution centers and then to individual gas stations incurs costs.
3. Taxes: Federal, state, and local taxes are added to the price of gasoline.
4. Retail Markup: Gas stations add a markup to cover operating expenses and profit margins.

Conclusion:
While the wholesale price of gasoline can offer insights into market trends, it doesn't directly translate to the prices consumers see at the pump. Claims highlighting only the wholesale price without context can be misleading. For a comprehensive understanding, it's essential to consider the full journey of gasoline from the refinery to the fuel tank.