Who Makes The Most Money Off the Sale OF A Gallon Of Gas?

[red states rule]

So much for the Dems and liberal media talking about the "evil" profits of the oil company




Raleigh, N.C. — Drivers paid $3.46 for a gallon of regular, unleaded gas at a Marathon station on Lake Wheeler Road Friday morning.

If you think store owner Steve Byers is getting rich, think again.

"A couple weeks ago, I sold $40,000 worth of gas and made about $140," Byers said.

So where does all of that money go?

In February, about 80 percent went to the cost of buying oil and refining it, according to the federal government.

Another 14 percent covers federal and state taxes. North Carolinians currently pay 32.5 cents of state tax on a gallon of gas, plus the federal tax of 18.4 cents per gallon. The state adjusts that rate every six months based on the price of wholesale gas. North Carolina's total gas tax of 51.2 cents per gallon is slightly higher than the national average of 48.1 cents per gallon.

Add a few more cents to transport it, and that's what the retailer is paying when the shipment arrives.

http://www.wral.com/traffic/story/9330861/

[Noir]

So 80% is going to the company that produces the oil?

[logroller]

So 80% is going to the company that produces the oil?
Negative, the refining costs and profits are usually lumped together.

As with any statistic, presentation affects how it's interpreted. Its interesting how percent increases can be misleading.

http://2.bp.blogspot.com/_B9wrgzpYQ3o/SFWaQzgDakI/AAAAAAAAAcg/etFVz-TZCK4/s320/gas_pumps.png
http://forbes.house.gov/UploadedPhotos/HighResolution/ae74f9b9-b7c8-4675-ae92-135d5fed7498.jpg

Notice it says what the cost of the gas is. Because if costs go up more significantly in one cost sector, as crude oil has, its percentage increases proportionately. It may appear taxes have gone down significantly from the aggregate ('00-'07)AVG to now, wherein reality it was only about a $.04 reduction per gallon. A Cost sector could could even increase as refining costs/profits have (nearly $.15 vs per gallon increase) whilst decreasing by percentage.

Though I'm not suprised by this. I would expect a person selling water in the desert to make more than at a lake. Then again, they sell more beer at the lake!:laugh:

[logroller]

This on Exxon, the largest oil producer(non-opec).

The Irving, Texas, company reported a first-quarter profit of $10.65 billion, or $2.14 per share, up from $6.3 billion, or $1.33 per share, a year earlier.
on average had expected Exxon to report a first-quarter profit of $2.07 per share, according to Thomson Reuters I/B/E/S.

Revenue rose 26 percent to $114 billion.

http://www.reuters.com/article/2011/04/28/us-exxonmobil-idUSTRE73R35O20110428

That's a profit margin of ~9.3%. Not too shabby.

Yet when compared with Apple...


CUPERTINO, California—April 20, 2011—Apple® today announced financial results for its fiscal 2011 second quarter ended March 26, 2011. The Company posted record second quarter revenue of $24.67 billion and record second quarter net profit of $5.99 billion, or $6.40 per diluted share. These results compare to revenue of $13.50 billion and net quarterly profit of $3.07 billion, or $3.33 per diluted share, in the year-ago quarter. Gross margin was 41.4 percent compared to 41.7 percent in the year-ago quarter. International sales accounted for 59 percent of the quarter’s revenue. http://www.apple.com/pr/library/2011/04/20results.html

[Noir]

Yeah but every man and his dog know how grossly over priced apple products are. For example I bought the iPhone 4 for £600 (about $900) when the cost for apple to build one is about £125 ($185) and the upscaling on their computers is worse still.

Here's a quick guide to the extra costs in iMacs just because apple make them, so say adding 2TB of memory would cost around $180, but apple charge $550, ect
http://macenstein.com/default/2010/09/why-you-should-never-buy-a-mac/

[fj1200]

Yeah but every man and his dog know how grossly over priced apple products are. For example I bought the iPhone 4 for £600 (about $900) when the cost for apple to build one is about £125 ($185) and the upscaling on their computers is worse still.

The "cost" of Apple is not in the building it's in the design and marketing. The latter of which apparently works well since you paid the price.

[Noir]

The "cost" of Apple is not in the building it's in the design and marketing. The latter of which apparently works well since you paid the price.

Exactly.

[logroller]

Following Apple's profit model, big oil should charge an extra dollar per gallon to market the idea-- gas guzzling is way cool.

"Is that raw fuel I smell coming out of your exhaust?"
"Yep. Made some adjustments. Now I get 6mpg. Pretty cool huh?":thumb:

[red states rule]

So 80% is going to the company that produces the oil?

One would think the cost of oil would be a major expense to an oil company Noir

I think you said you work in a pub. Is the cost of food and beer a major factor in setting prices at the pub?

The article shows government make more off the sale of gas then the oil companies do

[red states rule]

Yeah but every man and his dog know how grossly over priced apple products are. For example I bought the iPhone 4 for £600 (about $900) when the cost for apple to build one is about £125 ($185) and the upscaling on their computers is worse still.

Here's a quick guide to the extra costs in iMacs just because apple make them, so say adding 2TB of memory would cost around $180, but apple charge $550, ect
http://macenstein.com/default/2010/09/why-you-should-never-buy-a-mac/

Must not have ben too grossly overpriced if you paid it