When I pull into the gas station, I usually steel myself mentally to drop at least 60 bucks on filling up. I'm all about trying to limit my driving, but I have wedding photography gigs to get to on most weekends this time of year. With at least 160 miles to travel round trip on average, not to mention couples counting on me, walking, biking or carpooling just isn't an option.
As I filled up the other day, watching the dollars fly by, I wondered where this $4-something per gallon cost comes from. I did a little research, and I wanted to share what I found with all of you. Check it out.
According to the U.S. Department of Energy, as of June 2008, this is how the price at the pump breaks d
own.
- 74 percent of what you pay comes from the cost of oil
- 10 percent goes to taxes
- 9 percent to pay for refining
- 7 percent to distribution and marketing
The numbers are slightly different for diesel.
This means that about $44 of the $60 I pay at the pump come directly from the price of oil. You've probably seen the daily deluge of news reports of oil at or near record highs. We may be at the mercy of the pump, but we can at least drive smart and save some cash. The Department of Energy offers a list of energy-conserving tips. Also check out the new popular gas-saving technique called hypermiling.
Thinking about switching to a more fuel friendly ride? Check out this Ask brass answer.
--Peter
What percent of that goes directly into profits for oil companies then?
Based on those percentages adding up to 100% I don't see what would explain
2007 profits of:
Chevron: $18.7 billion
Exxon Mobil: $40.6 billion
Seems to me they left out that 10% - profits directly to the Oil companies (of course not all their revenue is derived from the pump, but still).
Luckily, living in a small town like Corvallis allows ample opportunity to get just about anywhere you need to be on bike. Which is what I've been doing for a few months now. It's wonderful.
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