Gas Station Economics, by SwampFox
Fuel prices have been rising for a couple of years, and this past summer’s high cost was frustrating for almost everybody. Who profits, and why is the price so high? How does a gas station make money? How many steps are involved in getting oil from the ground, turning it into fuel, and putting it in your tank? It is more complicated than you might think. First, oil has to be found and removed from the earth. Drills, pipes, pumps, lots of metal, and heavy labor. Every part of that carries a very high cost that is passed along to …