Gas Prices and Demand Drivers:
In Missouri, gas costs $3.13 per gallon. Prices are higher in Sedalia at $3.19 per gallon. Warrensburg has cheaper prices at $3.09 per gallon. Gas prices should slow down as demand decreases. However, high crude oil prices above $80 per barrel will keep prices rising. Drive the speed limit to save on gas.
Though gas prices have fallen in some areas, the national average has risen. COVID-19 reduced oil demand and production. Russia’s war against Ukraine also impacted prices. Gas data refers to cash prices, not credit. 10 states prohibit credit card surcharges at gas stations. Gas prices fluctuate daily.
Factors Affecting Gas Station Profits:
- How many gallons does a gas station sell a day?
- An average gas station sells about 4000 gallons per day – about 200$ net per day from gasoline retail. This is why the convenience store part is important for a gas station’s bottom line.
- Gas retailers receive a fraction of the price listed on the sign – their net profit per gallon is around $0.03-$0.07 after costs like labor and insurance.
- A gas station’s fuel storage tank ranges from 12,000 to 24,000 gallons of each grade per station. The average sales area in convenience stores in 2019 was 2,425 square feet. Stores sell 4,000 gallons per day on average, so retailers typically make about $100 per day selling gas. Margins vary throughout the year.
Profit Margins and Business Considerations:
- Most major oil companies have left retail because selling gas generally isn’t very profitable. According to IBISWorld, gas stations make an average net margin of just 1.4% on their fuel. The initial costs of opening a gas station range on average from $250k to $2 million.
- Gas stations are a good investment if you have convenience stores on them and if they’re off a major highway where a premium can be charged on the gasoline. Owning a gas station is a very hard business from what I understand.
- An average gas station owner can make anywhere from $40,000 to $100,000 annually. But it’s going to take a lot of work. Gas stations that do more than serve gas tend to make more money.
Gas Station Key Performance Indicators:
- Gas station KPIs can be used to track the performance of your gas station, identify problem areas and ultimately improve upon them. The purpose of this article is to outline all the key performance indicators for a gas station and how to calculate them.
- KPIs are the key performance indicators of a business. In other words, they’re the metrics that measure how well a business is doing and how it’s performing. They can be good or bad, depending on how well you’re doing with your gas station. If your metrics are bad, it means you need to make changes. If they’re good, then it’s time to celebrate.