Key facts
- Gas station profit margins have widened significantly over the past decade.
- The difference between wholesale gasoline costs and retail prices has increased from roughly 20 cents to 40 cents per gallon.
- Industry experts attribute some of this increase to rising operational costs, but also to additional profit for retailers.
- President Trump has publicly criticized gas stations for not lowering prices in line with falling oil costs.
President Trump has publicly criticized gasoline retailers, accusing them of not passing on savings from falling oil prices to consumers. Evidence suggests that the profit margins for gas stations have indeed widened over the past decade. Data collected by Dow Jones’s Oil Price Information Service indicates that the difference between what retailers pay for wholesale gasoline and what they charge drivers has increased from approximately 20 cents per gallon to about 40 cents.
While industry experts acknowledge that rising operational costs for gas stations contribute to this widening gap, they also suggest that a portion of the increase likely represents additional profit for the businesses. This trend implies that gas stations may be benefiting disproportionately from fluctuations in oil prices.