Why Gasoline Prices and Crack Spreads Are Rising

Crack spreads measure how profitable it is for refineries to turn crude oil into products such as gasoline, diesel, and jet fuel. They are currently elevated because global gasoline supplies are tight due to refinery disruptions in Russia, China, and the Middle East.

U.S. gasoline imports have also fallen significantly, putting additional pressure on supplies and prices, according to the U.S. Energy Information Administration. Distillate and jet-fuel crack spreads are even higher because disruptions have reduced global production of these fuels. As a result, U.S. refiners are shifting production toward diesel and jet fuel.

Gasoline prices vary across the U.S., with the West Coast having the highest average price at $5.21 per gallon and the Gulf Coast the lowest at $3.62 per gallon before Labor Day.