Cost Components of a Gallon of Gasoline

[Go2Guy]

+ Raw Materials: $2.62 / gallon

+ Refining Costs: - $0.07 / gal

+ Distribution & Logistics: $0.33 / gal

+ Taxes: $0.39 / gal
================

Total: $3.27 / gallon.

Refining costs: "...Refiners are “price takers” that operate on relatively low profit margins that are highly dependent on the market demand for petroleum products. That means at times, the value of a petroleum product coming out of the refinery isn’t enough to cover the costs of obtaining and refining the crude oil.


What am I paying for in the price of a gallon of gasoline? | ExxonMobil's Perspectives Blog

[ruxCYtable]

+ Raw Materials: $2.62 / gallon

+ Refining Costs: - $0.07 / gal

+ Distribution & Logistics: $0.33 / gal

+ Taxes: $0.39 / gal
================

Total: $3.27 / gallon.

Refining costs: "...Refiners are “price takers” that operate on relatively low profit margins that are highly dependent on the market demand for petroleum products. That means at times, the value of a petroleum product coming out of the refinery isn’t enough to cover the costs of obtaining and refining the crude oil.


What am I paying for in the price of a gallon of gasoline? | ExxonMobil's Perspectives Blog

So the refiner is getting 7 cents, retailers get 1% from what I've heard (I assume that's included in the distribution costs) and the government gets 39 cents. Hmmm...and it's the refiners the government would have us believe are the criminals? Maybe we should put congress on trial for high gas prices instead of oil company CEO's.

[CyinCo]

I'd like to see further breakdown of each category. For example, where do the "taxes" go? What is done with that money? If it is roads and bridges, prove it. Show me the money trail.

[Bigman38]

+ Raw Materials: $2.62 / gallon

+ Refining Costs: - $0.07 / gal

+ Distribution & Logistics: $0.33 / gal

+ Taxes: $0.39 / gal
================

Total: $3.27 / gallon.

Refining costs: "...Refiners are “price takers” that operate on relatively low profit margins that are highly dependent on the market demand for petroleum products. That means at times, the value of a petroleum product coming out of the refinery isn’t enough to cover the costs of obtaining and refining the crude oil.


What am I paying for in the price of a gallon of gasoline? | ExxonMobil's Perspectives Blog

Interesting article.

So the refiner losing 7 cents a gallon? How do they make their money?

[BCClone]

I believe most of the money is made from the other products that come out of the crude oil. I forget the final number, but only half of each 44 gallon barrel is refined gasoline. There is LP, jet fuel, kerosine, misc (plastics type products). They can refine about 45 gallons of "product" out of the barrel.

I was told once, a few years ago, that retailers made 10 cents a gallon. It could have went down over time. When you take off the nearly 2% for mostly credit cards, they probably do net just 1% at 3.25 gas.

[vmbplayer]

Interesting article.

So the refiner losing 7 cents a gallon? How do they make their money?

That data is just for the month of December 2011. It was picked because it is favorable to Exxon.

Gasoline and Diesel Fuel Update

See the second column of the chart on that link to follow back historically how much cost they took. With the exception of about 6 months over the last 11 years the percentage of the cost we pay at the pump has been over 5% and is usually 10-20%. December 2011 was an outlier when it was -1.5% the lowest it has been over the time period and one of only 3 months where it was negative.

As a percentage the cost has significantly moved to the cost of Crude oil though. So their point is right about needing more supply. We also need to work on reducing demand. But the original link was very biased if you're interested enough i'd look at the data on the government sources they linked and look at the historical info.

[Clonefan94]

Interesting article.

So the refiner losing 7 cents a gallon? How do they make their money?

That's on Gasoline. It wasn't that long ago that there was no uses for gasoline, it was a waste product of refining. They are making their money in other products that are refined.

I'd actually like to see a breakdown of a drum of crude oil and where does all of it go. With Chevron just reporting $7.8 billion in Q3 profit (their biggest ever) I'd like to see some numbers too on how they couldn't make gasoline affordable for the every day consumer without government subsidies. I'm not saying it's right or wrong, just that I would like someone to explain it to me.

[Bigman38]

Gotcha, that makes sense. I didn't realize that there was that large of a percentage of crude oil that goes into other products.

[vmbplayer]

That's on Gasoline. It wasn't that long ago that there was no uses for gasoline, it was a waste product of refining. They are making their money in other products that are refined.

I'd actually like to see a breakdown of a drum of crude oil and where does all of it go. With Chevron just reporting $7.8 billion in Q3 profit (their biggest ever) I'd like to see some numbers too on how they couldn't make gasoline affordable for the every day consumer without government subsidies. I'm not saying it's right or wrong, just that I would like someone to explain it to me.

EIA Energy Kids - Oil (petroleum)

from the US energy information administration. From the kids site, but the data still applies

[Bigman38]

That data is just for the month of December 2011. It was picked because it is favorable to Exxon.

Gasoline and Diesel Fuel Update

See the second column of the chart on that link to follow back historically how much cost they took. With the exception of about 6 months over the last 11 years the percentage of the cost we pay at the pump has been over 5% and is usually 10-20%. December 2011 was an outlier when it was -1.5% the lowest it has been over the time period and one of only 3 months where it was negative.

As a percentage the cost has significantly moved to the cost of Crude oil though. So their point is right about needing more supply. We also need to work on reducing demand. But the original link was very biased if you're interested enough i'd look at the data on the government sources they linked and look at the historical info.

Your right, I took the article with a grain of salt since it was from Exxon. They definitely aren't getting any sympathy from me.

[Cyclonepride]

I have no problem with fuel taxes, but they should isolate the funds only for their intended use (roads and bridges).

[iahawkhunter]

Interesting article.

So the refiner losing 7 cents a gallon? How do they make their money?

They make up for it in volume.

(sorry, couldn't resist)

[BCClone]

I have no problem with fuel taxes, but they should isolate the funds only for their intended use (roads and bridges).

Yea,kinda like social security. I don't want to go the poly route, but it would be nice if everything went where it should.

[BCClone]

They make up for it in volume.

(sorry, couldn't resist)

HEY, being a farmer, I resent that statement. That is our philosiphy and ours only.

[CyCloned]

I always love these articles that talk about how oil companies only make 2 or 5 cents a gallon and then the next quarter they have a $50 billion dollar profit. Ya, there has to be some creative accounting going on there somewhere.