WHY DO GAS PRICES GO UP?

Rick Rock
August 28, 2022

Gasoline prices in some parts of the country are at a six-year high. Its not the fault of the gas station owner who makes around 6cents per gallon of profit after overhead.

The Hustle, an online magazine, 9/13/21

Crude oil companies, the folks who pull the oil from the ground account for about 57 percent of the profit from gas prices.  They cut deals with refiners to sell oil at a higher cost. For example, it costs Exxon about $20 to produce a barrel of oil from an existing well according to analysts. Right now they are charging around  $70 or more per barrel. That's 250% mar-up.

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