Fuel pump assembly retailer Auteria published a new graphic that outlines where every penny of a gallon of a gas goes, and it might not be what most consumers expect. The 2016 data shows that gas station retailers receive the smallest percentage of the gallon’s cost, at only 7%, while drilling companies receive nearly half of the money paid at the pump.
“For those in the petroleum industry, it may not be a surprise that drilling and production companies take the bulk of the amount paid for a gallon of gas,” said Ana Rivera, Product Manager at Auteria. “For consumers, however, it might be a shock to see how little gas retailers earn.”
The information in the graphic is based on data provided by the U.S. Energy Information Administration and others, and it is based on average 2016 costs. At that time, the average gallon of gas cost $2.15.
As the graphic shows, gasoline costs break down as follows:
- Drilling accounts for 45% of the cost
- State, local and federal taxes account for 21%
- Refining accounts for 18%
- Transportation accounts for 9%
- Retailers earn the remaining 7%