Average Retailer
Typically a retailer averages between 5-15 cents, there are exception to this average based on many factors. But one important thing to keep in mind that retailers tend to make the least money on regular grade fuel, and most money on premium grade and diesel fuel.
We have done enough P&L for gas stations over the years to tell you that most gas station tend to stay around 8-10 cents when you take a yearly average on all 3 grades of fuel and diesel combined.
Property Owner Fuel Taxes (CA Gas Stations)Property OwnerUnderground Storage Fee .20/galDiesel fuel tax .41/galMotor vehicle fuel tax .539/galOil Spill Admin, Protection .085/barRetailFed fuel tax .184/galState fuel tax .539/galSales tax 9.5/%*Taxes /per gal $2.412
Mark-Up on Gas
Generally, the markup (or “margin”) on a gallon of gas is about 15 cents per gallon (gross profit before expenses). Factoring in expenses, which include rent, utilities, freight, labor and credit card fees, a retailer is left with about 2 cents per gallon in profit. Stores sell an average of 4,000 gallons per day, so retailers typically make about $100 per day selling gas (net profit) available to pay other costs not previously referenced such as maintenance and insurance.
Margins can vary wildly throughout the year. When wholesale prices climb, retailers typically hold back price increases, knowing that price-sensitive customers will go somewhere else to buy their fuel – and other items inside the store. This often leads to a situation where retailers will lose money on every gallon they sell. When wholesale prices fall, retailers seek to extend margins to compensate for lost margins when prices were rising.
Underground Storage Tanks (UST)
Congress directed EPA to develop financial responsibility regulations for owners and operators of underground storage tanks.An average UST has a lifespan of 20 to 30 years including Fiberglass tanks but are meant to last 30 to 40 yearsThe average cost for a Fuel Tank Replacement is between $1,289 and $1,431. Labor costs are estimated between $259 and $326 while parts are priced between $1,030 and $1,105.
On-Site Mobile Fueling (Wet Hose Fueling) (Direct Fueling)
Wet hosing is also known as direct fueling, on-site mobile fueling, or fleet fueling. It is an efficient fueling process in which tank trucks fuel a company’s fleet on location. Typically, wet hosing is used with large scale construction or agricultural machinery because those machines are too big and cumbersome to be fueled at the nearest gas station.
You don’t have the installation costs of an onsite fuel tank, the costs and manpower required to maintain the tank/conduct testing to ensure tank and fuel integrity, cost of storage tank liability insurance.
Wet hose fueling maximizes your drivers’ time and reduces fuel waste since looking for a fueling station and filling up is out of the picture. Since fueling typically takes place overnight, you can be confident that at the start of the workday, “all systems are go,” no matter whether they are at your facility, yard, or job site. See Downstream