Those numbers are highly suspicious.ric said:The price at the pump doesn't go up proportionately with the cost of crude oil. The issue with Katrina was more about refining and distribution than per-barrel price of crude oil.
While these numbers are over a year old, you get the idea:
for a gallon of gas at $1.87 (in California):
. Refining Costs: 75 cents, including 5 to 8 cents for oxygenate clean air additive.
. Crude Oil Cost: 61 cents.
. Federal Excise Tax: 18 cents.
. State Excise Tax; 18 cents.
. State/local taxes: 14 cents
. Gas station profit: 1 cent.
OK, so lets say 20 cents a gallon profit (although I doubt it is that high from what I have read), that is a less than 10% profit margin on a $2+ gallon of gas. In the business world that is nothing, most regular consumer items are way way above that. But most of what I have read in the past says the bulk of their profit is from the crap in the quickie mart, not from the gas itself. I want to say that something like 20% of 7-11s profit comes from cigarettes, but I could be wrong.coloradospringsprius said:P.S. regarding gas station profits...
From a Saturday AP story (Brad Foss, author):
"Nationwide, the profit margin on a gallon of gasoline has widened since the start of the year and now is 20.7 cents a gallon - almost double the historical average - thanks to the growing spread between wholesale and retail prices."