Reporting from a leased gas station in Philadelphia, FOX Business’ Jeff Flock debunked the myths versus realities of Biden's oil blame game after the president suggested oil companies control gas prices.
"Oil prices are decreasing, gas prices should too," Biden stated in a tweet on Wednesday. "Last time oil was $96 a barrel, gas was $3.62 a gallon. Now it's $4.31. Oil and gas companies shouldn't pad their profits at the expense of hardworking Americans."
However, according to data from NACS, only 5% of roughly 150,000 gas stations across the nation are controlled by big oil, Flock pointed out.
Second, many may assume that stations make a big profit on gas sales, but 125,000 facilities make their money by also running a convenience store.
"The profit margin on gasoline is very, very small 2, 3, 4 cents per gallon. That's why you see most gasoline stations now have convenience stores. They're probably making more on a cup of coffee they sold you than on the gasoline," AAA Senior Public Affairs Manager Robert Sinclair Jr. told FOX Business earlier in the week.
The third misconception of the retail gas market is most stations in America are 60% family-owned or run by single-store owners. Businesses reflect the price of gas that they receive from the refiners, and they’re not overcharging, according to NJGCA Executive Director Sal Risalvato.
"There is no gouging. It does not matter how much they put the price on the pump. If a customer could come in and look at the price and say, ‘Wow, that's too high. Why are they charging so much? And they can drive out and buy it somewhere else? That is not gouging," Risalvato stressed.
On Friday, the national average of a gallon of gas was $4.27, according to AAA.