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.
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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.
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