There was an interesting piece in Money Magazine this month about how your money is broken down when you pay for a gallon of gas. I had always kind of wondered what factors went into the price, so I thought I might share this info with you.
Here is the breakdown for a $1.68 gallon of gas…
- $.95 – Crude-Oil Suppliers – This is the biggest expense and what we’ve heard the most about in the news recently. Canada actually reaps the largest share of our crude-oil dollars.
- $.23 – Oil Companies – These are the big boys such as ExxonMobil and BP who make their money on oil drilling, refining, and distribution to gas stations.
- $.23 – Your State & City – These taxes vary widely state to state and city to city. For example, New Yorkers shell out $.41 a gallon, while Georgia residents only pay about $.12.
- $.18 – The Feds – As of now, Washington’s piece of the pie is fixed. But of course Congress thinks this amount should be increased.
- $.10 – Service Stations – Gas stations actually make very little, if anything, on the gas you pump. Where they make their money is through drinks, snacks, and other random junk we buy.
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