Fuel-pump producer breaks down who gets what from a gallon of gasoline
Once you’ve calmed down and stopped cussing about the price you pay at the pump when you refill your car, be it classic or contemporary, have you ever wondered about where your money is going?
So has Auteria, a Texas-based supplier of fuel-pump assemblies produced in Mexico for the U.S. and Canadian automotive markets. It engaged in research with Spork Marketing to produce the accompanying chart, which shows who got what from a gallon of gasoline in 2016.
“The 2016 data shows that gas-station retailers receive the smallest percentage of the gallon’s cost, at only 7 percent, while drilling companies receive nearly half of the money paid at the pump,” Auteria said in its news release.
“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,” added Ana Rivera, Auteria product manager. “For consumers, however, it might be a shock to see how little gas retailers earn.”
The research shows that of each $1 spent on gasoline, 45 cents goes to drilling, 21 percent to state, local and federal taxes, 18 cents to refining costs, 9 percent to the cost of transporting that fuel to the gas station, and 7 percent to the retail outlet.
“Using the 2016 data, the average gasoline retailer earned about 15 cents for every gallon of gasoline sold (at the average 2016 price of $2.16 per gallon),” Auteria noted in its release.
“However, out of this 7 percent share, gasoline retailers must cover the costs of storing and dispensing the fuel, payment processing and store overhead costs.
“To illustrate just how little gas stations earn from selling gasoline, payment processing charges are typically 2-3 percent of the total bill. If a retailer earns 7 percent of the cost of a gallon of fuel, and has to pay a 3 percent processing charge, their share of the total falls to 4 percent (less than 10 cents per gallon).”
“As a fuel system parts manufacturer, we are obviously preoccupied with fuel efficiency and saving our customers money on gasoline,” Rivera concluded. “This data is a reminder that the best way to save money on fuel is to use less of it. It’s not as if there are big savings to be had in the gasoline production pipeline, at least as far as we can tell.”4 comments