Q:

What is the average profit margin that a gas station makes on a gallon of gasoline?

A:

Quick Answer

For gas stations, the average profit margin for a gallon of gas is roughly 2.5 percent. For all of their products, gas stations made 3 percent net profit in 2013 and 1.6 percent in 2012.

Know More
What is the average profit margin that a gas station makes on a gallon of gasoline?
Credit: JAY DIRECTO / Stringer AFP Getty Images

Full Answer

Most of the retail price of a gallon of gas, 69 percent, goes to the cost of crude oil. Taxes are about 13 percent of the price. The refining process for the oil accounts for 8 percent of the overall charge. When gas prices rise at the pump, individual gas stations receive little added income. For many gas stations, 75 percent of their profits comes from the sale of other products, such as food, medicine and accessories.


Is this answer helpful?

Similar Questions

  • Q:

    What is a domestic profit corporation?

    A:

    Domestic profit corporations are legally recognized organizations that conduct business for profit in their countries of origin. A domestic corporation may be held to different laws and standards than a foreign organization.

    Full Answer >
    Filed Under:
  • Q:

    What is a commercial organization?

    A:

    A commercial organization is a group with a particular set of skills, resources or priorities in place geared toward turning a profit. The residual income left after deducting expenses is available to be distributed to employees or shareholders or reinvested back into the company at management's discretion.

    Full Answer >
    Filed Under:
  • Q:

    How much gas does a car use while idling?

    A:

    On average, a car uses between 1/5 to 1/7 of a gallon of gas per hour when it is idling. There are different types of engines requiring differing amounts of fuel necessary to power the engine.

    Full Answer >
  • Q:

    How much gas is being burned in a car while idling?

    A:

    When idle, a vehicle uses about 1/5 to 7/10 of a gallon of gas per hour, while diesel vehicles use about one gallon per hour. The exact amount depends on the age and condition of the vehicle, with older vehicles in sub-par conditions consuming more fuel. Idling needlessly wastes fuel, increases maintenance costs of the vehicle and creates as much pollution as a moving vehicle.

    Full Answer >
    Filed Under:

Explore