When gas prices go up, we want someone to blame. The president. The oil companies. The government. But the price of a gallon of gas isn't one thing — it's four.

About half the price is crude oil — set on a global market that no president, no company, and no country fully controls. Another seventeen percent or so is the cost of refining that oil into gasoline. Another seventeen percent is distribution and marketing — getting it from the refinery to the pump, and the gas station's slim margin. And the rest is taxes.

In Wisconsin, you pay about fifty-one cents a gallon in combined state and federal taxes. That money builds and maintains roads. Neither has been raised in years — the state's been frozen since 2006, the federal since 1993.

Next time gas prices move, ask yourself: which of those four pieces actually changed? The answer is almost always the first one — crude oil. And that's set on the other side of the world.

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What makes up the price of a gallon of gas? According to the U.S. Energy Information Administration, there are four main components: crude oil (~50%), refining (~17%), distribution and marketing (~17%), and taxes (~16%). (EIA: Factors Affecting Gasoline Prices)

Crude oil is the biggest piece — and the most volatile. It's set on a global market. When prices move, it's almost always crude driving the change. The other three components are relatively stable. The national average crossed $4/gallon in early April 2026 for the first time since August 2022, driven by the Iran conflict and Strait of Hormuz closure. (AAA; EIA Short-Term Energy Outlook)

Wisconsin gas taxes total about 51 cents per gallon: 32.9¢ state excise tax, plus a 2¢ petroleum inspection fee, plus the 18.4¢ federal tax. The state tax was once indexed to CPI, but lawmakers eliminated the indexing provision in 2006. The rate has been frozen for 20 years. The Wisconsin Transportation Builders Association estimates the state has lost approximately $4 billion in transportation revenue as a result. Wisconsin ranks 12th highest nationally for state gas taxes. That revenue funds road construction and maintenance — the state transportation fund received about $1.07 billion from fuel taxes in 2021-22, roughly 45% of the fund's total. (WI Legislative Fiscal Bureau, Informational Paper 40)

The federal gas tax — 18.4¢/gallon — hasn't been raised since October 1, 1993. That's over 30 years with no adjustment for inflation. Wisconsin's state tax is also frozen — indexing to CPI was eliminated in 2006. Both taxes have lost significant purchasing power. (EIA FAQ: Federal and State Motor Fuels Taxes)

For comparison: California's combined state gas taxes are about 70.9¢/gallon, Illinois charges 66.4¢, and Alaska has the lowest at just 9¢. (EIA state gas tax data, January 2026; Tax Foundation)

Gas station margins are surprisingly thin — typically just a few cents per gallon on fuel sales. Most gas stations make the majority of their money from convenience store sales, not from the gasoline itself.

Related Civic Minute segments: Rockets and Feathers (CM-21), Oil Is a Global Commodity (CM-23), Gas Taxes: Where Does the Money Go? (CM-32)