Isn’t it about 50 cents per gallon that the oil companies make? Where does that other $2.50 go, Harry?
50¢?? Not that high. Typical oil company profits are ~10%.
Add the refusal to site new refineries and to obstruct the expansion/updating of existing ones, and ... voila! ... you're in the situation we see now. As the political class should know, but either doesn't know or won't admit publicly, this shjt catches up with you, over time.
As a guess, this minute, the refiners are making around 35 cents a gallon. This is still less than the amount of tax on a gallon of motor gasoline in all but about 3-5 states. Further, as some of the maintenance and distribution issues are cleared up, figure 30-90 days, no more, the crack spread will revert to much more typical levels.
You can obtain all the intel you want on this subject at WTRG Economics. Might have to search around a bit, but it's there, I guarantee you.
Also, you can learn all you like about the history of the crack spread, and what times of year it widens and narrows, at Time & Timing, my website. Take the free trial by clicking on 'The WebApp'. Then, login and go to The SpreadMaster (click on the red link). Fill in your favourite values and click display.
If you have ANY difficulty using T&T (traders don't; non-traders might), FReepmail me, and I'll be happy to walk you through it.
FReegards!