How much money do oil companies make per gallon of gas
How much do oil companies make on each gallon of gas? | Yahoo Answers
While often blamed for pushing up prices, traders don't necessarily benefit from the high price of crude or gasoline; they profit from how much the price changes. Traders can get rich - as long as they bet correctly on whether prices will rise or fall.
Most service stations are independently owned and operated and take in between 7 and 10 cents for every gallon they sell, according to the U. That 7 to 10 cents going to the gas station isn't even profit.
Out of that, station owners still have to pay leases, workers, and other expenses - leaving them with a profit of just a few cents. For the service stations, most profit comes from selling coffee, cigarettes, food and other amenities. The government takes about 40 cents right off the top, with about 18 cents going to the feds.
Breaking Down the Cost of a Gallon of Gas
State taxes vary widely, but the national average is about 22 cents a gallon. Most of this money is used to build and maintain roads. Getting the gas from refineries to service stations via trucks or pipelines - and the cost of storing it in large tanks - eats up another 23 to 26 cents per gallon. About 24 cents a gallon goes to refining companies like Valero VLOFortuneSunoco SUNFortune or Frontier FTOFortune that specialize in turning crude oil into gas.
Some companies like ExxonMobil XOM, FortuneChevron CVXFortune and ConocoPhillips COPFortune also have refining operations. Profits for refiners have been squeezed lately because the price they pay for oil has risen so much faster than the price they can sell the gas for. This helps explain why Big Oil companies -like Exxon, which actually buys more crude oil than it produces - haven't seen their profits rise as much as the price of oil.
This is the most expensive part of a gallon of gas. EIA estimates it costs U. Markey's office swears it's no April fool's joke. Have you lost your job, your business or your home? Are you raiding retirement accounts to pay the bills? We want to hear from you. Tell us how you're being affected by the weakening economy and you could be profiled in an upcoming story. Stock arbitrage trader download emails to joptionpane input dialog text field cnnmoney.
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