Consumers are currently facing higher fuel costs, a trend linked to elevated crude oil prices and increased crack spreads. Crack spreads serve as a key financial indicator for the refining sector, reflecting the profit margin achievable by processing crude oil into refined petroleum products like petrol and diesel.
A standard method for calculating a crack spread involves deducting the spot market price of a gallon of crude oil from the wholesale price of a gallon of a specific refined product. This calculation provides insight into the refiner's gross margin.
Since May, the petrol crack spread in New York Harbor has averaged approximately $1 per gallon higher than its 2025 peak, which was around 60 cents per gallon. This significant increase highlights the current market conditions.
The primary factor behind these elevated petrol crack spreads is a constrained global supply of petrol. Tight inventories are driving up the value of refined products relative to crude oil, thereby expanding refinery margins.
This information was reported by the U.S. Energy Information Administration.
