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How does gasoline pricing work?

I had always wondered how the gas prices worked and if gas stations were profitable.  I once even asked a gas station owner in my town and he told me that they were not really profitable to give him a comfortable lifestyle so he made most of his money from an auto repair shop and towing service that he ran from the same facility.  He also mentioned that other owners stay in business by selling impulse purchase items like snacks and drinks, along with emergency items that people need in the neighborhood or during a road trip.  They overprice them because when people buy something at a gas station, they have pretty much decided that price does not matter.  Now the Union of Concerned Scientists has crunched some numbers and has published this graphic that shows that when I fill up my tank on the RAV4, the gas station has barely made a buck.

 
Image of a pie chart showing price breakdown of petrol and gasoline for USA markets