How much do oil companies make on each dollar I spend on gas?
The latest published data for the fourth quarter of 2013 shows the oil and natural gas industry earned 6.3 cents for every dollar of sales in comparison with all manufacturing, which earned 8.6 cents for every dollar of sales.
Like other sectors, the oil and natural gas industry strives to maintain a healthy earnings capability to remain competitive and benefit its millions of shareholders, across the country and in all walks of life. Healthy earnings also allow the industry to invest in innovative technologies that improve our environment and increase American energy production—leading the search for new technologies and energy sources that will provide a more secure tomorrow.
So what exactly are consumers paying for at the pump?
The biggest single component of retail gasoline prices is the cost of the raw material used to produce gasoline—crude oil. Crude oil costs account for about 67 percent of what people are paying at the pump. Excise taxes average 13 percent. That leaves just 20 percent for the refiners, distributors, and retailers.
The biggest single component of retail gasoline prices is the cost of the raw material used to produce the gasoline – crude oil. Recently, that price has been between $98 and $109 a barrel, depending on the type of crude oil purchased. With crude oil at these prices a standard 42 gallon barrel translates to $2.33 to $2.60 a gallon at the pump. Excise taxes add another 50 cents a gallon on average nationwide. So the price for gasoline is already at $2.83 or more per gallon even before adding the cost of refining, transporting, and selling the gasoline at retail outlets. For Complete information, see the API primer: "What's Up with Gasoline Prices?"