It’s probably considered an easy source of tax revenue. And, gas pumps don’t show how much you are paying in tax. Here in California, almost $1.00 of the $5.50+ pump price is taxes and fees. About 18 cents for the federal tax and about 82 cents for various state taxes and fees added on. So nobody really knows how much you are paying in taxes when you buy gas.
I’ve often heard, that gas station operators make between 5 and 10 cents a gallon gross profit, regardless of what the retail price of gas is. Measure that 10 cents vs. the various taxes, government make a lot more for doing nothing and collecting tax, than do the people who actually are in the business of selling gasoline.
I’ve often heard, that gas station operators make between 5 and 10 cents a gallon gross profit, regardless of what the retail price of gas is. Measure that 10 cents vs. the various taxes, government make a lot more for doing nothing and collecting tax, than do the people who actually are in the business of selling gasoline.
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I read that the ‘Big Oil’ makes somewhere between 25-35 cents /gal.
The big winners in gasoline sales are the various government.