Northeast Ohio gas stations may lose money when prices climb (cost distribution chart)

Northeast Ohio gas stations may lose money when prices climb (cost distribution chart)

CLEVELAND, OH (WOIO) - Gas prices are expected to hit the $3 mark sometime around the Memorial Day weekend in Northeast Ohio, according to the gas tracking app GasBuddy.

As much as you'd like to curse out the cashier or owner of your local gas station it's not their fault.

It's not the gas station owner that's making all that extra money and in some cases, when prices rise this high they, may actually lose money.

Point the blame at the rising cost of crude oil. It's currently hitting prices we haven't seen since 2014 at around $67 a barrel.

Where does the money go?

The U.S. Energy Information Administration (EIA) tracks and breaks down every three months where the money goes for a gallon of gas.

Not surprisingly when you break down a single gallon the major cost is crude oil according to the EIA analysis of March prices.

Crude oil is what is refined to make gasoline, and it's the refinement process that is the second highest cost.

The federal and state taxes added on are the third highest cost, with marketing and distribution fourth.

What does the gas station make on a gallon of gas?

When is comes to what a gas station owner tacks on to the top of that break down, according to Patrick DeHaan a Petroleum Analysts for GasBuddy, it's very little.

"Gas station owners hate the rising prices as much as you do," DeHaan said.

When prices get high gas it cuts into a station owner's profit unless they want to be the most expensive in an area.

According to DeHaan a gas station will make anywhere from $0 to $0.20 a gallon depending on where they want to set their price.

In fact, DeHaan said when prices get this high station owners might even loose money on a gallon of gas just to keep you coming back, or to buy things like snacks and beverages.

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