Gas Prices - Where the Money Goes

Citation: VnutZ, Gas Prices - Where the Money Goes, OmniNerd.com, 13 March 2008, accessed on 25 October 2014 from http://www.omninerd.com/articles/Gas_Prices_Where_the_Money_Goes
Tags: oil, economics, business, and gas

As the price for a barrel of oil topped $110, many people begin to wonder who is making all the money? The national average price of gas reached $3.27 prompting CNN to outline the current breakdown of where those dollars and cents go. The basic chain includes federal/state taxes, gas stations, transportation companies, storage companies, refineries, crude pumping companies and well owners. Hold your wrath from pump attendants. Perhaps obvious, most of the money goes to taxes, pumping outfits and the well owner. The influence of market traders is smaller than expected as their profits come from arbitrage, both up and down, as opposed to direct ownership of shares.