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Gas Station Business

John Smith
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Joined: Oct 08, 2001
Posts: 2937
I've heard on the news the other day that the average gas station make 1 cent per gallon of gas. That is, their selling price is typically 1 cent above what they pay for gas. That figure popped up when they discussed the recent increase in the gas theft by mororists that fill up and run. According to the report, just one theft of $50 wipes off the entire 1 day profit of a gas station (5,000 gallons of daily sales * 1 cent = $50).

My question is, how can that be? I mean, the gas stations owners bother with that thing for just $50 of profit a day? I understand that they really don't spend for maintenence (it's actually an oil company responsibility), but there is still a lot of work and trouble to justify just 50 bucks of daily profit, isn't there?
Roger Johnson
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Joined: Feb 24, 2004
Posts: 311
$50 profit per day seems a bit too low to me, but a gas station is similar to a grocery store. you need customers, the more the better. typically, a guy will buy something else, after filling up gas tank. that adds up to a considerable sales.

that reminds me: when someone bought a winning lottery, not only they win big, the store who sold the winning lottery also get prize.
Paul Bourdeaux
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Joined: May 24, 2004
Posts: 783
My wife used to keep books for a BP franchise, and she confirmed that gas stations do not make a lot of money on gas. For their franchise, it was eight or nine cents for premium and six or seven for regular. Most of their profit came from the car wash, convience store, etc...

When the gas prices go up, gas stations take a pretty big hit too, because people are less likely to buy the extra stuff when they are paying so much for gas. So I guess everyone loses!
[ September 01, 2005: Message edited by: Paul Bourdeaux ]

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Damanjit Kaur
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Joined: Oct 18, 2004
Posts: 346
My cousin got a gas station and a restaurant in Canada. I was surprised to see everyone there in that place selling gas at lower prices than for what they actually buy. They are just into this gas selling business to attract customers to their other side-business where they make up this loss.
 
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