YOU ARE HERE: KSPR HomeCollections

A Gallon of Gas: a cost breakdown- see where the money goes

February 27, 2013|by Joe Daues, KSPR News and ABC News

We all feel pain at the pump as gas prices soar.
Carl Azuz explains where each dollar goes when you fill up on gas.

When gas prices make you want to scream try not to deafen the guy in the convenience store. It's not usually their fault.  Store markup barely adds to the price of gas.

If you really wanna blame someone, you could blame OPEC, the organization of 12 petroleum exporting countries.    It has a significant influence on the cost of crude oil.   For every dollar you spend on gas, crude takes the biggest chunk: about 72 cents.

The second-largest factor in the price: taxes.   The U.S. federal government has a tax on every gallon bought.  So do state and local governments, whose taxes depend on where you live.  They all add up to approximately 13 cents on every gas dollar.  

Unfortunately for drivers, we can't just take oil from the ground, filter out the dirt, and stick it in our gas tanks.   We've gotta pay for the cost of refining, the process of turning crude into actual gasoline.  That covers about 8 cents on our rapidly-shrinking dollar.


Then getting gasoline to stations, and maybe throwing in an advertisement here and there makes up 7 cents on the buck.

All that adds up to a dollar; 100 percent of the cost of gas.   So you can see how a filling station has practically no influence on the price.   It does get a cent or two, but if you go inside and buy a drink and a donut ... that helps keep their business, fueled.

KSPR 33 Articles