Who Profits from High Gas Prices?

Hint: The same companies that swipe profits on every other item at stores ? credit card companies.

March 06, 2012

ATLANTA - The conversation over high gas prices has evolved over the past few years, as the retailers selling the fuel are less likely to be blamed for consumers?? pain at the pump. And that??s to be expected, since Oil Price Information Service (OPIS) numbers show that the national gross margin on fuel is currently 10.0 cents per gallon, several cents below breakeven.

So who is making money as prices rise? A WSB-TV report, featuring Georgia Association of Convenience Stores President Jim Tudor, cited two groups. One: anyone who is selling oil, whether oil producers or speculators. Two: credit card companies.

"Did you know that eight to 10 cents per gallon goes to the credit card companies? That only goes up with the price of gas," the new report noted.

"[The credit card companies are] doing well because whenever you fill up - typically it cost at least $60, instead of, say, $40 - and these credit card companies are making a percentage of each transaction."

Click here to watch the news report.

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