How much does a gas station make off fuel?

According to IBISWorld, gas stations make an average net margin of just 1.4\% on their fuel. That’s far lower than the 7.7\% average across all industries — and ranks beneath other notoriously low margin businesses like grocery stores (2.5\%) and car dealerships (3.2\%).

What is the average profit margin of a gas station?

The gas station profits are drying up! Most private gas stations are seeing average profit margins of 1.7 percent, which is extremely low compared to private companies. After credit card fees and other operating costs, they operate in a razor-thin profit margin.

How much profit do oil companies make in a gallon of gas?

About $0.05/gallon is profit for refineries turning that crude oil into gasoline. That’s the ExxonMobil and Shell’s of the world as well. And that gas station of yours? Well the retailers (including distributors and marketers) on average made about $0.04/gallon in profit.

How much revenue do gas stations bring in?

Successful station owners can make anywhere from $40,000 to as much as $100,000 annually, but not without hard work and a lot of ancillary business.

How do gas station owners make money?

Before they sell gas to you, station owners buy gas on the wholesale market. When the wholesale price of gasoline falls quickly the difference between the cost of wholesale gasoline (including taxes) and the price at the pump gets wider, boosting profits for stations.

Is it profitable to own a gas station?

Currently, gas stations and their corresponding convenience stores are some of the most profitable businesses in the United States. Across the country, there are over 100,000 gas station/convenience stores which bring a cumulative of over $400 billion revenue each year.

Is owning a gas station profitable?

Where do gas stations make the most money?

Top Sellers at Gas Station Stores

• Cigarettes (34.4 percent)
• Packaged beverages (13.8 percent)
• Beer (12.2 percent)
• Food service (12.1 percent)
• Other tobacco (3.8 percent)
• Candy (3.7 percent)
• Salty snacks (3.2 percent)
• General merchandise (2 percent)

What is the most profitable gas station?

Speedway is one of the most profitable gas station chains on the market, but the company hasn’t always been seen in the best light.

Is owning a gas station a good investment?

Like any business, a gasoline station can be a good investment. When stations are well located and well-run, they can generate healthy profits.