I came across an article on the CNN website, “Who gets rich off $3 gas – who doesn’t“. At first I thought to myself, “$3 gas – wouldn’t that be nice!” Then I looked at the break down.
The crude oil costs $2.07, which is 69% of the overall $3 price. Tax is just 40¢ or just over 13% of what goes into the register. Well, there’s no wonder gas is only $3 a gallon! Most of what you are paying for is gas.
I filled up yesterday at a cost of $8.37 per gallon. It cost me over $85. Since the crude costs are roughly the same worldwide for these multi-national corporations, as are refining and the tiny percentage made by the retailer, there is about 70% left for the taxman.
My math may be off somehow. As I was typing this I was watching the CBS Evening News, which we get hear on SkyNews after midnight. They reported on gas prices from the UK and quoted prices at $9.50 gallon. But I suppose when you figure what most American tourist will pay for a pound sterling as opposed to the market price, it’s possible. It is very possible that $2.03 translates to $2.20 or more. I haven’t checked the walk-up rates on the high street recently.