Refining Costs Keep Gas Prices High

U.S. Oil and Gas Association's Dan Simmons says refining costs, not crude alone, are keeping pump prices elevated even as oil falls.

Updated on Nov. 2, 2026 in Oil and Gas

Flat vector editorial illustration of tall refinery distillation columns and pipework rising from an open plain, in coral, teal, sage, and cream. — Gasoline prices remain elevated at U.S. pumps even as Brent crude trades near $118 a barrel, as refining and compliance costs keep fuel expensive. AI Illustration. Upload story photo >

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Gas prices remain high at U.S. pumps even as crude oil prices fall, according to an analysis published November 2, 2026. Brent crude is trading around $118 a barrel, and the U.S. Oil and Gas Association's Dan Simmons attributes pump prices to refining costs rather than crude alone.

Why it matters

Drivers pay for more than crude oil, so falling oil prices do not automatically translate into cheaper fuel at the pump. Understanding the cost components helps explain why gas prices can stay elevated when crude markets move lower.

Brent crude is trading around $118 a barrel, and with 42 gallons in a barrel, the crude input works out to a per-gallon figure well below the retail price. The article does not break down how much each added cost, including refining and the renewable fuel standard, contributes per gallon.

The players

Dan Simmons

Dan Simmons is a spokesperson for the U.S. Oil and Gas Association who attributes high gas prices to refining costs rather than crude oil alone.

The details

Gasoline costs include refining, transportation, gas station operating costs, taxes, and compliance with the renewable fuel standard, which requires refiners to blend a set amount of renewable fuel into the fuel mix. Those refiner costs are passed down to drivers, and the Iran conflict is cited as affecting prices alongside the broader Middle East and Ukraine conflicts.

• November 2, 2026: Analysis on U.S. gas prices and refining costs published.

Market Landscape

The renewable fuel standard's blending requirement ties refinery economics directly to federal fuel policy, so compliance costs shape the competitive position of refiners against rivals. Pump prices therefore reflect policy-driven costs layered on top of crude market swings, not crude prices alone.

Drivers should expect pump prices to stay elevated even when crude oil falls, because refining, transportation, station, tax and renewable fuel standard costs are added on top. Monitoring refining and policy costs, not only crude headlines, gives a clearer picture of what you will pay at the pump.

The takeaway

Crude oil is only one input to gasoline prices, so falling oil alone does not guarantee cheaper fuel. Watching refining margins and fuel policy helps explain why pump prices lag crude market moves.