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NRDC: Oil Industry Makes $14 in Profit Every Time You Fill Up Your Gas Tank

1 min. read

Simon Mui of NRDC breaks down how much profit the oil industry makes every time you fill up your gas tank.

...Our updated estimate shows that 23 cents of every dollar you spent on gasoline in February went to the oil industry’s after-tax profits.[1] If you’re like the average driver, you pay about $60 to fill up your gas tank, meaning the oil industry makes about $14 in profits. [2] That’s a lot of lunches you’re buying.

Amazingly, as NRDC explains, the American Petroleum Institute (API) – the oil industry’s main lobbying group - is now claiming that "oil industry profits have been “well in line with the rest of the U.S. manufacturing industry, averaging about 7 cents for every dollar of sales.

How do the flacks for the oil industry manage to go from 23 cents in profit to just 7 cents for every dollar you spend at the gas station? Simple: they "[leave] out a large portion of the oil industry profits by excluding earnings from companies that supply the majors with crude oil."

To put it mildly, as Tom Kloza "of the esteemed Oil Price Information Service" explains, this is "disingenuous." To put it less mildly, it's blatantly dishonest. You might want to keep that in mind the next time you come across an oil industry representative spouting their intentionally misleading talking points.