How Much Does Gas Station Make on Gas?

[KingEleven]

Had an Indian 'fella once tell me he makes fractions of a penny on a gallon of gas, but I never knew if that was true or not. How much does a gas station make on a gallon of gas?

 

[Seymour]

Had an Indian 'fella once tell me he makes fractions of a penny on a gallon of gas, but I never knew if that was true or not. How much does a gas station make on a gallon of gas?

I've lent money on several gas stations - the exact price varies tremendously - boutique stations can make up to 40 cents per gallon - but if there are several competing stations it could be low like 5 cents - they do extremely well on the inside store

 

[KingEleven]

I've lent money on several gas stations - the exact price varies tremendously - boutique stations can make up to 40 cents per gallon - but if there are several competing stations it could be low like 5 cents - they do extremely well on the inside store

wow, it's really as high as .40? that sounds like a lot

 

[SECplayer]

I've always heard the spread is about a dime at the most. And often times less. The big oil companies expect these smaller gas stations to pretty much break even on selling gas and make all their money selling cokes and candy.

 

[Seymour]

wow, it's really as high as .40? that sounds like a lot

I'm correct here - but if ur in a area where they are several stations and just one person drops u r fucked - 40 cents would be about the very max though

 

[Seymour]

So many factors involved - like the store inside, proximity to the next station, side of the street, is the gas branded (Shell, Mobil, etc), neighborhood ....

 

[KingEleven]

Higher than I thought

 

[Greenbacks]

According to NACS Online's 2016 report, the average mark-up per gallon of gas by the retailer was 18.9 cents over five years, but that is not all profit. After expenses, the gas station only makes about 3 or 5 cents per gallon sold.

 

[PatsFan1283]

It varies but they do a lot worse when prices are low like they are now because there is less foot traffic in the store since people fill up less. Like it was said, that is where the real $ is. Then you've got cars becoming more fuel efficient as well.

 

[Willie99]

my clients might average 5 to 8 cents per gallon most of the year

however, for a short period of time every couple of years of so, especially when prices are dropping, they can make 25 to 50 cents per until somebody near them fucks it all up for everybody

after CC fees, it's possible to actually be losing money if they don't charge more for CC's


they obviously need you to buy coffee and milk, so don't forget to visit their retail store

 

[CaptainLee]

Maybe 2 or 3 cents per gallon.

 

[Seymour]

Maybe 2 or 3 cents per gallon.

I got over a mil lent to 4 stations to redo tanks - I'm pretty sure Willie and I are correct

 

[Albatross]

A .03 cup of coffee for $1.50 is good. QT and RaceTrac have to killing it. Also those 2 stores have all that food (if you call it that) on the rollers. They also have little "cafe" in them now.

 

[Mr_Mark]

my clients might average 5 to 8 cents per gallon most of the year

however, for a short period of time every couple of years of so, especially when prices are dropping, they can make 25 to 50 cents per until somebody near them fucks it all up for everybody

after CC fees, it's possible to actually be losing money if they don't charge more for CC's


they obviously need you to buy coffee and milk, so don't forget to visit their retail store

how many gallons of gas do they sell a year? (on avg)
Gas stations by me are always busy

completely guessing here:
if each car only buys 10 gallons, and there are 50 cars an hr (most likely more) 500 gallons sold an hr
Just to make the numbers easy, 10/hr business days.
5,000 gallons sold per day
x365
1,825,000
x.05 cents per gallon
$91,250 profit?

 

[Willie99]

how many gallons of gas do they sell a year? (on avg)
Gas stations by me are always busy

completely guessing here:
if each car only buys 10 gallons, and there are 50 cars an hr (most likely more) 500 gallons sold an hr
Just to make the numbers easy, 10/hr business days.
5,000 gallons sold per day
x365
1,825,000
x.05 cents per gallon
$91,250 profit?

150,000 gallons per month might be on the high end, I think the average is somewhere between 100,000 and 150,000

one station does 30k to 50k per month, not focused on selling gas, makes money doing other stuff

another station focuses on gas sales, needs volume, does between 100k to 120k


the wide range is based purely on changes in price vs their competition

profit from gas sales essentially pays rent and maybe payroll, the other stuff is their profit (unless they own their station and don't have a mortgage)

obviously, those periods of high margins help

 

[Mr_Mark]

150,000 gallons per month might be on the high end, I think the average is somewhere between 100,000 and 150,000

one station does 30k to 50k per month, not focused on selling gas, makes money doing other stuff

another station focuses on gas sales, needs volume, does between 100k to 120k


the wide range is based purely on changes in price vs their competition

profit from gas sales essentially pays rent and maybe payroll, the other stuff is their profit (unless they own their station and don't have a mortgage)

obviously, those periods of high margins help

Thanks for sharing. I dated a girl years ago and her family was loaded. They owned a few gas stations. Relationship didn't last long enough for me to ever know any details but I always wondered what type of numbers gas stations were doing.