According to the American Petroleum Institute, 71% of the cost of a gallon of gasoline is the cost of the crude oil from which it is produced. But before we flog Evil Big Oil for current crude prices north of $100/barrel, let’s remember that as large as they are, the major private oil corporations are relatively small players in the global oil market, which is actually dominated by the huge national oil companies in Venezuela and the Middle East. I’ve discussed this before: of the five companies making up “Big Oil,” only ExxonMobil at #17 even cracks the top 20 globally in terms of reserves. COMBINED the five companies making up Big Oil would barely be the 10th largest oil company globally. The simple fact is Big Oil has essentially no control over the cost of crude oil or gasoline.
But there are reasons oil is over $100, and gasoline is therefore as expensive as it is.