Where Does Your Dollar Go?
50% is the cost of crude oil.
The cost of crude oil is often affected by supply and demand. This is why gasoline prices typically go up during heavy travel season like holidays and summer.
28% is the refining cost.
Sometimes the price is affected not just by the supply of oil, but also by the supply of good quality oil. Oil can be heavy or light, sweet or sour. Light, sweet crude is the easiest to refine, but also the shortest in supply right now. Refining heavy, sour oil costs more and raises the price of gasoline.
14% pays for taxes.
Federal excise taxes account for about 18.4 cents per gallon, while Oklahoma excise taxes and fees are another 17 cents for every gallon of gasoline you pump into your car.
8% pays for distribution and marketing.
This fee covers the cost of transporting oil from producing countries and states to refineries and then transporting the refined gasoline to distribution points. From those points, the gasoline is delivered to gas stations across the country. This cost, as well as what it costs the station to market their gasoline to you is passed along to the consumer.
Not included in this summary is any markup the gas station or convenience store may include trying to be price competitive with other stores.