Friday, February 1, 2008

Where does the money of buying gas go?

The following are the component & costs associated with getting gasoline to the pump.
Crude oil: This is cost of the crude obtained by drilling which is later refined.
Refining: The process of turning crude oil into a product that is ready for consumer use is called refining. This is done in refineries.
Distribution and marketing: This is the cost of bringing Gasoline from refineries to gas stations (often via intermediary distribution points), and the costs of operating the stations.
Taxes: Taxes paid to the Federal and State Taxes.

 200420052007
Crude Oil47%53%58%
Refining18%19%8%
Distribution & Marketing12%9%11%
Taxes23%19%13%

The source is from http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp.

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