Refining margin gas: today's crack spread explainer
The crack spread (the gap between crude purchase price and refined-product sale price) is the refiner's gross margin. Today the gasoline 3-2-1 crack runs around 35-45 cents per gallon nationally; PADD 5 West Coast cracks are about 25-40 cents wider thanks to CARB blend specification cost. [EIA · 31 Aug 2026]
What a 3-2-1 crack spread is
3 barrels crude in, 2 barrels gasoline out, 1 barrel distillate out. The dollar value of the product slate minus the cost of the crude barrels is the crack spread. NYMEX RBOB and ULSD vs WTI is the standard quoted ratio.
Why summer cracks spike
Summer specification gasoline (lower RVP, less butane) costs more to make. Driving-season demand climbs at the same time. Inventory draws push spot prices above contract.
Why PADD 5 cracks are wider
CARB summer gasoline is the most stringent specification in the world. Limited refining capacity outside California cannot supply the spec, so margins stay structurally elevated.
Related
crude share · California · Washington · regular-vs-diesel spread