Posted on 06/23/2022 6:55:36 PM PDT by DoodleBob
...It’s easy to look at the gas pump right now and think that station owners are taking you for a ride.
But the business model of gas stations is a bit counterintuitive.
Most gas stations barely turn a profit on their core product — and when the price of oil goes up they may even take a loss on it.
Battling small margins, cutthroat competition, and the looming threat of electric vehicles, many gas stations are more reliant than ever on secondary revenue streams.
...
The profit pipeline
Gasoline begins its journey as crude oil, largely sourced on home soil in states like Texas and North Dakota.
Once extracted from oil fields, this raw liquid is:
1. Sent to refineries to be processed into gasoline
2. Funneled via pipeline into bulk storage containers, and
3. Transported via freight trucks to gas stations, where it’s kept in 20k-gallon underground drums
By the time gas reaches the pump, the profit potential is pretty dismal.
Let’s say you buy one gallon of gas at your local station for $4.09 (the national average, as of April 13, 2022).
Here’s a rough breakdown of where that money goes:
Gas stations typically only receive a fraction of the price listed on the sign. And after factoring in overhead — labor, utilities, insurance, credit card transaction fees — the average profit is winnowed down to ~$0.03 to $0.07 per gallon.
Now, there is a lot of variance here: Some owners The Hustle spoke to claim to make $0.30+/gallon; others, as little as $0.01.
But assuming daily sales of 4k gallons at $0.05/gallon, your typical station might only bring home $200-300/day from gas.
(Excerpt) Read more at thehustle.co ...
The president spoke about the record high gas prices occurring during his administration during a speech on his imitation White House set across the street. “These are not normal times. Bring down the price you are charging at the pump to reflect the cost you are paying for the product,” Biden said. “Do it now. Do it today.”
Way to set brother against brother.
FJB
And the gas station owners should be saying the same thing. Maybe now, some of em will actually endorse the “I DID THAT!” stickers on their pumps....fight back, boys.
He’s a coward and a useless POS.
Profit from gas is only enough to keep the lights on. Most of the profit is made from what’s inside the convince store attached to it.
He wants the gas stations to lower prices so that he can take credit. Communists see profit as evil anyway.
I’m not sure what to make of businesses with slim profit margins. I don’t see many gas stations going out of business. Restaurants on the other hand, they seem to go out of business quite often.
For heaven’s sakes, bring back Rick Perry and put him in charge.
For heaven’s sakes, bring back Rick Perry and put him in charge.
“Most of the profit is made from what’s inside the convince store attached to it.”
yep ... almost all the gas stations around here have large convenience stores attached: junk food/beverages, lottery tickets, tobacco/nicotine products and beer ...
A wawa station makes more money on a bottle of water than they do on 15 gallons of gas. THATS A FACT. Throw in a bag of chips, a sandwich or and ice cream bar. They dont need the money from gas sales. Just the draw of gas to sell a 18 pack of beer.
Step II - Brandon and his commie thugs attempt to nationalize the oil industry - top to bottom - refineries to Mom and Pop gas stations.
Here’s the bad news for Brandon - Exxon ain’t gonna let it happen.
I usually go to QuikTrip. They are well lit and clean. Lots of choices inside. Good gas prices.
I remember stories like this from the 50s where the gas station makes most of its money from the candy/soda pop/cigarett machine(s). It is just more elaborate today.
Good thinking, that’s where I usually go also.
I go there every day.
And then there is the Texas-sized operations like Buc-ee's where a plethora of pumps surrounds a near nirvana of convenience store the size of a small walmart! Yep, also Texas based but spreading through the SE USofA!
I pumped gas when i was kid…..
The owner made 6 cents a gallon profit.
.
Mid 60s grease monkey in NYC. Owner said gas and oil made the nut (rent & utilities). He made his money in the bays....then came Hess and the gas-a-terias.
This is well known unless you are a politician who has had live handed to them on a silver platter.
Do badly...you are still hired.
Do well...same result.
Zero incentive to do well.
This only works as a Union worker.
Not in the real world.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.