10% profit margin, on 10,000 gallons of fuel day, or more just on fuel? If you're one of the stations receiving multiple truckloads per day, that starts to become a pretty hefty chunk of change. Especially if you're a savvy business owner and make sound business decisions. Meanwhile, the Oil Producers and Oil Refiners (who often are the same company) are making profit margins between 100% - 250% of their costs depending on what component they're selling and refining. Republicans have been shrieking for gas tax holidays, when realistically it's Big Oil and their ridiculous profits at the cost of Americans, all as a result of their anticompetitive practices and being allowed to operate regional monopolies.
Fortunately Americans know just why their prices are high and aren't fooled by Republicans crying over the oil industry making profits in excess of the average year in a single quarter. As much as they try and lie that it's all Biden's fault, it's pretty clear whose getting rich and which party is receiving all of the Big Oil donations.
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Fuel Sales
There are 116,641 convenience stores selling fuel in the United States, and these retailers sell about 80% of all the fuel purchased in the country. Overall, about 55% of the convenience stores selling fuel are single-store operators—roughly 64,000 stores across the country. These small businesses often don’t have the resources to brand their stores beyond the brand of fuel they sell and promote on their canopies, often leading to consumer misperceptions that they are owned and operated by a major oil company.
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The gross margin (or markup) on gasoline in 2021 was 30.9 cents per gallon, or 10.2% of the average price of $3.03 for the year. Over the past five years, retailer gross margins have averaged 27.2 cents per gallon, or 10.7% of the overall price.
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Depending on sales volumes and storage capacity, some retailers can receive three deliveries a day, or one delivery every three days. Retailers may not be able to adjust their prices when wholesale prices increase because a competitor may not be experiencing an increase in their cost of goods sold. Conversely, a retailer may adjust gas prices when the competition adjusts prices, either following or in advance of a fuel shipment.
- convenience.org NACS - Advancing Convenience & Fuel Retailing Association
