(September 25, 2017) Fuel pump assembly retailer Auteria has published a new graphic that outlines where every penny of a gallon of a gas goes, and it might not be what most consumers expect. The 2016 data shows that gas station retailers receive the smallest percentage of the gallon's cost, at only 7%, while drilling companies receive nearly half of the money paid at the pump.

"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," said Ana Rivera, product manager at Auteria. "For consumers, however, it might be a shock to see how little gas retailers earn."

The information in the graphic is based on data provided by the U.S. Energy Information Administration and others, and it is based on average 2016 costs. At that time, the average gallon of gas cost $2.15.

As the graphic shows, gasoline costs break down as follows:

    Drilling accounts for 45% of the cost
    State, local and federal taxes account for 21%
    Refining accounts for 18%
    Transportation accounts for 9%
    Retailers earn the remaining 7%

Using the 2016 data, the average gasoline retailer earned about 15 cents for every gallon of gasoline sold. However, out of this 7% 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% of the total bill. If a retailer earns 7% of the cost of a gallon of fuel, and has to pay a 3% processing charge, their share of the total falls to 4% (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 said. "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."

About Auteria

Auteria provides fuel pump assemblies built to OEM specifications. Auteria has served customers for nearly five decades and is committed to supplying North American-made products and services that meet exact specifications at wholesale prices.