Have you ever checked out the Good Sheet from Starbucks? I was reading the No.4 Good Sheet, Gas Prices, and was intrigued by its content. I have to admit I don’t know a whole lot about gas and everything that goes along with it, so I wanted to share what I learned with you, in case there are others out there like me.
Where does your money go when you pay for a gallon of gas?
- Taxes – 12% Federal and State taxes, along with other fees.
- Distribution & Marketing – 7% Transportation and distribution costs, along with each Oil Co. marketing.
- Refining – 9% Cost varies based on quality of crude oil.
- Crude Oil – 72% The biggest portion goes to companies that extract crude oil from the ground.
- Service Stations – They usually add on a few cents per gallon.
How much money are oil companies making? $155 Billion profit in 2007. The US government takes 40% of oil and gas revenues in taxes and royalties. Other countries take out 60% to 65%.
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