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Q: United States Gas Stations (Question #2) ( Answered,   0 Comments )
Subject: United States Gas Stations (Question #2)
Category: Business and Money
Asked by: phillyboy1960-ga
List Price: $75.00
Posted: 12 Oct 2006 10:33 PDT
Expires: 11 Nov 2006 09:33 PST
Question ID: 772938
I am working on a presentation regarding gas stations in the United
States. I dont need "exact" answers, but i do require a "source" for
any statistics quoted. I am going to list each of my questions as a
separate entry:

Q2)I am trying to find out the "Gross Margin" earned (national
average) for gasoline in the United States over the past five years
(ten if possible)

Ideally, i would like to break out this information by "fuel grade" -
i.e. Premium, Diesel, etc

Bonus dollars will be paid for additional relevant information on
"gross margin" (example - by geography, by independent dealers versus
national chain, etc)

Request for Question Clarification by keystroke-ga on 19 Oct 2006 11:15 PDT
Hello phillyboy1960,

I have found this data for convenience stores, which make up 75
percent of gas stations in the US. For these, I have the gross margins
earned in the past five years and beyond.

Would this be of interest to you as an answer?


Clarification of Question by phillyboy1960-ga on 24 Oct 2006 11:43 PDT
i would "take" the information that you have on gasoline margins for
convenience stores. That isnt exactly what i am looking for, but, i am
glad to have that information as well and will gladly pay the $75.
Does it have breakout by state? by fuel? or any other granularity of
data? Doesnt matter, but i will take it any way

thank you
Subject: Re: United States Gas Stations (Question #2)
Answered By: keystroke-ga on 31 Oct 2006 11:39 PST
Hello phillyboy1960,

Thank you for allowing me to answer your question.  

This is the information I could find out in regards to gross margin
(for convenience stores) in the US. At the end, I've added the
information I could find pertaining to individual states and
individual gasoline brands.

"Motor Fuels Sales at Convenience Stores"

"Convenience stores sell the majority of gasoline purchased in the
country -- an estimated three quarters of all fuel sold in the United
States in 2005."

"The bulk of a convenience store's motor fuels sales are gasoline --
92.7 percent. The rest comes from diesel fuel (7.1 percent) and "other
fuel" such as kerosene (0.2 percent)."

"Unleaded regular gasoline accounted for four fifths of the gasoline
sold at convenience stores (81.6 percent) in 2005, followed by
mid-grade (10.7 percent) and premium (7.6 percent). Sales of mid-grade
and premium have declined over the past few years as consumers have
traded down octane levels in reaction to escalating gasoline prices.
In 1998, when prices averaged $1.05 per gallon, regular gasoline
accounted for 69.8 percent of gasoline sales."

"Gross margins in 2005 were 16.3 cents per gasoline. After
incorporating expenses, such as credit cards fees, which are 2.5 to 3
percent, operating expenses, depreciation and taxes, profit margins in
2005 typically were two cents per gallon. On a percentage basis,
margins in 2005 were 6.9 percent, the lowest since 1984."

-- 7.2% (1)
--6.9% (5)

--12.71 cents (3)
--7.2% (3)

--13.7 cents (3)
--8.8% (3)

--9.2% (4)

--9.2% (4)

--8.5% (4)

The 7.2 percent in 2004 was the lowest level margin that the business
has had since 1984 (3). The 9.2 percent in 2001 was the lowest in 10
years before that (4).

If information on individual states would be useful for you as well,
here is a chart from the Californian state government detailing the
gross margin for its gasoline industry month-by-month for 2006:

California Energy Commission-- 
"Estimated 2006 Gasoline Price Breakdown & Margins Details"

At the bottom of the page, there are links to the charts for the past
seven years.

The Idaho Attorney General investigated allegations of gasoline price
fixing after Hurricane Katrina in 2005 and found them baseless. The
report includes the gross margins in certain parts of Idaho.

Idaho Attorney General's Office

"Gross margins in 2005 averaged 9.13 cents per gallon in the Pocatello
market and averaged 13.26 cents per gallon in the Boise market. But,
there were wide swings quarterly from these averages.

Gross margins during the September-December 2005 quarter in the
Pocatello and Boise markets were especially volatile. Margins in
Pocatello went from their lowest weekly point in September of minus
15.61 cents per gallon to a high of 46.87 cents per gallon the week
ending November 10 then steadily dropped to a low of 1.93 cents as of
December 29. Margins reacted similarly in Boise."

Arizona also conducted an investigation at this time.

Arizona Attorney General's Public Gas Report 2005

"Arizona gasoline wholesalers and distributors typically have margins
of 8 to 12 cents per
gallon. Data provided by certain Arizona wholesalers and distributors
indicated that they were
able to increase their margins to 20 or 30 cents per gallon on some
sales post Katrina. The
evidence is not sufficient to say that every wholesaler?s margins
increased as much following
Hurricane Katrina."

Individual companies also sometimes release their particular margins
in press releases. Here are those for 2004 and 2005 for Speedway Super
America, LLC.

Marathon Press Release

"The Speedway SuperAmerica LLC gasoline and distillate gross margin
has averaged $.1223 per gallon in the first two months of the third
quarter 2004, which is an improvement from the second quarter 2004 but
lower than the third quarter 2003."

"Marathon Oil Corporation Provides Fourth Quarter 2005 Interim Update"

"The Speedway SuperAmerica LLC gasoline and distillate gross margin
averaged approximately 15 cents per gallon in the first two months of
the fourth quarter 2005, up substantially from both the fourth quarter
2004 and third quarter 2005. However, the fourth quarter 2005 retail
gasoline and distillate margin is expected to be somewhat lower than
15 cents per gallon due to substantially lower retail margins in

The Pantry had a higher gross profit margin than convenience stores/
gas stations overall.

"The Pantry Reports Third Quarter Results and Increases Fiscal 2003 Guidance"

"Gasoline gross margin per gallon improved to 13.3 cents compared to
11.1 cents in the third quarter fiscal 2002."

"The Pantry Announces Record Fourth-Quarter and Fiscal 2005 Financial
Results; Increases FY 2006 EPS Guidance to $2.80-$2.90"

"The gross margin per gallon was 19.4 cents, compared with 12.0 cents a year ago."


1. National Association of Convenience Stores

3. National Association of Convenience Stores

4. Convenience Store Industry's Performance


Search terms:
gross margins gasoline 2003
gross margins gasoline 2005
gross margins gasoline 2002
gross margins gasoline 2004

If you need any additional clarification, let me know and I'll be glad
to assist you.

There are no comments at this time.

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