If oil is 60 dollars a barrel today, gasoline cost can be estimated. Crude oil at 60 dollars per barrel equals about 1.43 dollars per gallon crude cost, since barrel is 42 gallons, 60 divided by 42 equals 1.43. Gasoline retail price includes crude cost plus refining margin about 0.40 to 0.80 dollars, distribution and marketing about 0.20 to 0.40, and taxes average about 0.50 dollars per gallon federal plus state, ranging 0.30 to 0.70. So adding those, 1.43 plus 0.60 refining plus 0.30 distribution plus 0.50 taxes equals about 2.83 dollars per gallon. In low tax states, gasoline might be 2.70 to 3.00 dollars per gallon, in high tax states like California, 3.50 to 4.00 dollars per gallon. So at 60 dollars per barrel crude, US average gasoline would be roughly 2.80 to 3.30 dollars per gallon, depending on region and refinery margins. When oil was 60 dollars in recent years, US average was around 3 dollars. So if oil is 60 dollars today, expect gas about 2.80 to 3.50 dollars per gallon average.
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