Like a third to half of the price of gas is actually just federal and state (sometimes local) taxes. At $3.5 a gallon (the national average) a dollar of that is the refinery and their markup, a dollar is the wholesaler and their markup, and a dollar is taxes. Fifty cents is the actual profit for the gas station per gallon. In places like California, the tax part eats up a larger portion of the price and drives up cost per gallon.
Like a third to half of the price of gas is actually just federal and state (sometimes local) taxes. At $3.5 a gallon (the national average) a dollar of that is the refinery and their markup, a dollar is the wholesaler and their markup, and a dollar is taxes. Fifty cents is the actual profit for the gas station per gallon. In places like California, the tax part eats up a larger portion of the price and drives up cost per gallon.