Anonymous
Anonymous asked in Cars & TransportationCommuting · 1 decade ago

Did you know that Gas Stations only make around 5 cents per gallon?

and sometimes... not even that

(most of their capital gains come from Soda Pop and snacks)

so where does all that gas money go?

to Exon and other large oil companys?

You would THINK so, but actually, their cut is around a mere10 cents.

the truth is that the money is soooo dispersed among many different entities. the drilling, the transportation, the refineries, the middle-men....

everyone who's anyone is taking a cut.

not to MENTION the fact that the federal government takes almost 50% of any would-be profit.

We obviously need to move beyond dependency on fossil fuels. but as for now....

to many people ....too many companys... have their hands in the cookie jar, and even though WE as a society *think* we want fuel alternatives, a great percentage of us depend on it's revenue.

What are your views on the high prices of gasoline?

Update:

this is based on internet and independent research I did for a college paper. This is based on national averages and does vary from state to state.

11 Answers

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  • Anonymous
    1 decade ago
    Favorite Answer

    Yes, I know all of that info. Gas is a loss leader for some gas stations. They sell gas to get customers into the store to buy cola, snacks priced at high profit margins.

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  • 1 decade ago

    the premise is true though the amount each station makes varies by location and comeptition and by the amount they make from other sales, they really make very little on gas. 10 cents on a 3 $ gallon of gas is a only 3% profit to teh gas station owner left to pay expeses etc from

    '

    Now as to gas prices in the US- they are substantially cheaper than most of the civilizead world and that is even with taxes of 50-70cents per gallon. And in what is called adjusted for inflation dollars ( ie every year inflation makes a dollor worht less so a dollar last year woudl buy the same thinga s 1.04 this year)- in 1964 dollars gastoday is cheaper than in 1974.. if you translate 1974 pricesin to todays dollars we woudl be paying something like 6 bucks a gallon

    as to oil company profits they may seem high because of the total dollars earned . But there actual profit ratio/Margin( the % per dollar of sales they make as profit) is in line with most coporations- for evey dollar in revenue they have in sales they earn about 8 -10 cents in profits - just about like everyone else.

    So there is no price gouging and profiterring form the big bad oil companies ( though theer may be sommmmme from the mid east opec countries who sell them the raw oil).

    example if you were selling a bag of chips for 1.00 you would probably make profit of about 8 cents... so if you only sell one bag in year then your profiit in total dollars is small but still 8%- if you sell a million bags ( like they sell billions of gallons of gas) your profit rate ,8% remains the $80,000.00

    Check it out below

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  • 1 decade ago

    I have a friend who runs a gas station, he says his average profit is 11 -14 cents a gallon. I agreed with everything else you said, and think it is great you are bringing up this important issue.

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  • Lilly
    Lv 5
    1 decade ago

    They actually make 10-17 cents per gallon. But hey. You have a good point!

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  • ?
    Lv 5
    1 decade ago

    I know that they don't make much off a gallon of gas, but did you know that they only make 5 cents on each lottery ticket sold.

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  • Anonymous
    1 decade ago

    I have always thought of it this way, if you want more costumers lower your price so say if gas is 2.00 you get 100 people if gas is 3.10 you get 40 people just estimates. so it doesn't matter high or low all it matters is to us...but yes gas prices are BUTT EXPENSIVE right now!!

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  • ?
    Lv 7
    1 decade ago

    It is pretty ridiculous. I only drive, when I absolutely have to for the most part, I take public transportation or walk.

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  • Anonymous
    4 years ago

    yes, most of the price is taxes, the rest is corporate profits. the gas station owner gets very little.

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  • make it very expensive.........like here in the uk.....it costs arm and a leg......I'm all for that......

    in 10 years time there will be an alternative fuel.....unfortunately for the planet ...it might be too late.....

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  • pxp608
    Lv 4
    1 decade ago

    site your sources...

    I want to test their integrity...

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