Gas futures are currently:
Nymex RBOB Gasoline Future 113.89 -2.88 -2.47 10:38
Add in delivery costs, gas station operating costs, federal taxes, state taxes, county taxes, city taxes etc and you're not going to get to 1.25.
Around the X-mas holidays the RBOB gas futures dropped below 79 cents a gallon. So, the RBOB futures market is why the prices at the pump have risen over 30 cents a gallon.
This is the main thing that I don't get. Everyone always talks about oil prices and how it should have a direct effect on retail gas prices. However, unleaded gas is also a traded commodity. Why would we not use this as the driver? It's a full step closer to the actual retail price than the price of oil is (it's the SAME product!). I don't get it.
The DOE site provides a good breakdown on gas prices. Looking at their data it appears that distribution and marketing make up about 25 cents per gallon. So, add that to the current spot price of 113.9 and you get 128.9 a gallon. Now you have to add in federal taxes of 18.4 cents and you get up to 147.3 cents per gallon. Then you have to add in the state taxes. I'll do IL because that's where I live. 19 cents a gallon plus 6.25% sales tax and 0.3% storage tank fund tax. So that gets me to 177.1. I just paid 188.9 this morning. So, that means that the gas station owner had a gross margin of 11.8 cents per gallon. Credit card fees would've eaten up roughly 3% (or 5.7 cents) of that. So, now he has to pay the remainder of his expenses (employees, buildings, utilities, etc) as well as himself off of the remaining 6.1 cents per gallon.
If you ever want to figure it out yourself then these sites are critical:
http://www.eia.doe.gov/oil_gas/petroleum/info_glance/petroleum.html
www.bloomberg.com/energy
http://www.gaspricewatch.com/usgastaxes.asp