Who’s to Blame for
Record-high Gas Prices
High Gas Prices are Caused
by Record-High Oil Prices
January
2004
Today
January
2006
$1.60
$2.30
$4.07
Source: US Government,
Energy Information Administration
2
Crude Oil
What Makes Up a Gallon of Gas?
Source: US Government, Energy Information Administration (http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp)
Costs Associated
with Selling a
Gallon of Gas
Retail Price: $3.77/gallon
(May 2008)
Taxes
Distribution/Marketing
Refining
10%
5%
10%
75%
3
• Card fees declined as a percentage of card sales
• Labor efficiencies continued to improve, driven by pay
at the pump and other factors
Source: All data sourced from 2007 State of the Industry, NACS. Card Fees expense and labor expense margin from p. 50, and Total Sales from page 1.
Dollar value of card fees calculated based on card fees expense margin and total sales.
Note: Card fees as % of card sales were 1.90% in 2006 down from 2.18% in 2005.
Card Fees
as % of Sales
Labor Expense
as % of Sales
Convenience Stores:
Card Fees Have Caused Concern, But Efficiencies Increased
0.98%
0.94%
2005
2006
4
5.03%
4.43%
2005
2006
Even the Experts Agree
Oil executives on Capitol Hill in
Washington, Wednesday, May 21, 2008,
prior to testifying before the Senate
Judiciary Committee hearing on oil prices.
John Lowe, Executive Vice President,
Exploration & Production, ConocoPhillips:
“Crude oil represents over 70 percent
of the current cost of gasoline. So higher crude
prices are driving higher gasoline prices.”
Stephen Simon,
Senior Vice President Exxon
Mobil Corporation:
“First, the prices Americans pay at the pump reflect
the dynamics of an enormous international market
for energy ... “
Dr. Mark Cooper,
Director of Research,
Consumer Federation of America:
“Without the abuse of market power in the crude oil
and refining sectors, the summer price of gasoline
would be in the vicinity of $2.00 a gallon rather
than heading for $4.00 a gallon nationwide.”
Peter Robertson, Vice Chairman,
Chevron Corporation:
“Americans fe