Following The Gas Money - Hawaii News Now - KGMB and KHNL

Following The Gas Money

Bill Green Bill Green
Mary Church Mary Church

By Kristine Uyeno

HONOLULU (KHNL) - Hawaii drivers know it was just a matter of time.

The average price of gas in Honolulu rises above $3 this week for the first time in eight months.

Experts say it's because of a jump in crude oil prices.

So where is your gas money going?

Gas consultant Bill Green says retailers don't really make a lot of money by selling gas.

"Everybody who touches it gets more out of it than we do," said Green.

He says the biggest misconception is that gas stations get a big chunk of what consumers pay at the pump. In reality, it goes to crude oil suppliers. And of course, that's not all.

"I'm thinking that it goes much towards taxes, both state and federal," said Mary Church, driver.

She's right.

"Those you can identify per gallon runs about 51-52 cents a gallon," said Green.

And a portion of what you pay at the pump, roughly between 10% and 15%, goes towards marketing and distribution costs.

"We actually lose money selling gasoline and that's why a station like ours is a dinosaur. We're obsolete," said Green.

He says the only way to make money is by offering other services. Adding a convenience store and a carwash also helps the bottom line. He says an increase in price, doesn't mean an increase in profit.

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