CAROL ROTH: Debunked and Explained: No, greedy oil companies are not to blame for gas prices.

U.S. gas prices hit an average of $5 per gallon for the first time last week, according to AAA. Americans are having to spend more of their hard-earned money on energy. But who is really to blame?

It is probably helpful to start with a breakdown of the components of the price of gas.

The cost of crude oil is the biggest cost component of a gallon of gas and can skew the cost. In January, via the U.S. Energy Information Administration, the cost of crude was just over half the cost of gasoline, at 52%. In February it was 61%, and as of March 2022, it was 59% of the total cost of a gallon of “regular” gasoline (diesel varies slightly). Given its overall weighting to cost, changes to crude oil prices have an outsized impact on final gas prices.

The remaining major cost areas include refining, marketing and distribution, and taxes. As of March 2022, refining was about 18% of the total costs, distribution and marketing about 12%, and taxes (federal, state, and local) about 12%, depending on your location.

It is worth noting that gas stations make very little, and they don’t reap windfalls when prices go up. Most gas stations are independently operated, even those that bear a brand associated with a major oil company. It is estimated that a retailer’s markup on a gallon of gas is around 15 cents, and the profit after expenses averages around 2 cents per gallon. Because of this low take, most gas stations supplement their business with selling a variety of other things, from cigarettes to beverages.

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