How Do Gas Stations Price Their Gas?

How Do Gas Stations Price Their Gas?

How Do Gas Stations Price Their Gas?

Gas is like every other product with a supply and demand, and there are several groups responsible for setting the price. Gas stations usually add on a few cents, sometimes more, per gallon.

Natural and man-made disasters play a big role in gas prices. Warfare in a country could put a halt on oil drilling and shipping. Oil tankers in the ocean that are lost or damaged and leaking can also affect the gas market. According to the U.S. Department of Energy, for every dollar spent on gas, 65 cents goes to crude-oil suppliers, 14 cents for refining, 13 cents for taxes and 8 cents for distribution and marketing as of 2016.