How do gas stations make money? Not from the gas. You fill up for about $50, and after costs the station keeps roughly $2. In this animated explainer we follow your money from the oil field to the pump, reveal who really owns the station on your corner, and show the newest numbers that flip the usual story on its head.

Most videos stop at "the shop makes all the money". The latest industry data says something different. In 2025 the average in-store purchase actually lost money once every cost was counted, and fuel margins kept stations in business. Fuel and shop hold each other up.

Then we travel the world: why almost half of a litre of petrol is tax in Europe and the UK, the German rule that lets stations raise prices only once a day, why petrol stations are disappearing in many countries while India's network has almost doubled, and what electric cars mean for the gas station of the future.

Every number in this video comes from an official or industry source, and the source is shown on screen.

⏱ CHAPTERS
0:00 How much does a gas station keep?
0:30 Where your dollar of gas goes
1:25 Who really owns the gas station
2:15 The shop: where the money is
2:51 The 2025 twist
3:37 Europe, the UK, Germany and India
6:12 The electric future of gas stations
7:13 3 ways to pay less at the pump
7:40 Recap

???? IN THIS VIDEO YOU'LL LEARN
• How gas stations make money, and why fuel alone barely pays
• The gas price breakdown: what share goes to crude oil, refining, distribution and taxes
• How much a gas station really keeps per gallon after costs
• Why card fees can take about as much as the station keeps
• Who owns gas stations (hint: usually not the oil company on the sign)
• Why gas prices end in 9/10 of a cent
• Why convenience stores, coffee and hot food matter so much
• How fuel prices and taxes compare around the world
• Why the number of petrol stations keeps falling
• What electric cars mean for fuel stations
• Simple habits that can help you pay less for fuel

???? KEY NUMBERS
• Out of every dollar spent on regular gasoline: about 50¢ crude oil, 24¢ refining, 13¢ distribution and marketing, 13¢ taxes (August 2026)
• Typical station markup: just over 40¢ a gallon; after costs, about 10–15¢ a gallon
• Fuel: about 65% of store sales but only about 39% of gross profit
• Average in-store purchase profit: +1¢ in 2024, −7¢ in 2025
• Taxes: about 45.5% of the average EU petrol price; almost half of the UK price
• Over 20 million electric cars sold worldwide in 2025

???? SOURCES
• U.S. Energy Information Administration (EIA), Gasoline and Diesel Fuel Update
• NACS: State of the Industry 2026; Who Sells America's Fuel; Why Gas Is Priced Using Fractions of a Penny; consumer survey 2026
• European Commission, Weekly Oil Bulletin (26 October 2026)
• House of Commons Library, Petrol and diesel prices (October 2026)
• Competition and Markets Authority, road fuel monitoring reports (2026)
• GOV.UK, Fuel Finder guidance
• ACS, Forecourt Report 2025
• Bundeskartellamt; German Federal Government; ZEW Mannheim (2026)
• Australian Institute of Petroleum; ACCC
• UFIP (France)
• PPAC, Ministry of Petroleum and Natural Gas (India)
• International Energy Agency, Global EV Outlook 2026
• UK Department for Transport, Comparing fuel pumps to electric vehicle public chargers (2026)

Figures change over time. They are correct to the dates shown in the video.

❓ FAQ
Do gas stations make money on gas?
A little. After running costs, a station typically keeps around 10–15 cents a gallon. Most of what you pay goes to crude oil, refining, distribution and taxes.

How do gas stations make most of their money?
Inside the store. Coffee, snacks and prepared food carry much higher margins than fuel. But the newest data shows rising costs squeezed in-store profit, so fuel and shop now depend on each other.

Why do gas prices end in 9/10 of a cent?
The habit dates back to the 1930s. Today that tiny fraction can be a meaningful share of a station's fuel profit.

Why is gas so expensive in some countries?
Mostly taxes. Crude oil is bought at a world price, but tax shares differ hugely from country to country.

???? ABOUT LUMONOMY
Lumonomy sheds light on how the world works. We make clear, animated explainers about business, money, energy, sustainability and technology, built on real data and official sources. New videos every week.

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This video is for general information and education only. It is not financial advice.

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