Gas Stations

The 8,925 gasoline stations in the US sell automotive fuels, preferably at high-traffic locations, to individual motorists and fleets. Products sold include gasoline, diesel fuel, and gasohol. Other sources of revenue may include repair services, the sale of automotive oils, replacement parts and accessories, and/or providing limited food services.

Competition From Alternative Retailers

About 80% of all fuel sold in the United States is sold at convenience stores, according to the National Association of Convenience Stores.

Volatile Fuel Costs

With such low margins, gas stations have difficulty absorbing significant and sudden fuel cost increases.

Oct 26, 2026 - Rising Fuel Costs Squeeze Station Margins

• Rising fuel costs squeezed gas station operators' profit margins in September, according to an October report by Upside. Wholesale gasoline prices increased 32.7 cents per gallon during the month, while retail pump prices rose just 25.5 cents, reducing average fuel margins by about 7 cents per gallon. Despite higher prices, gasoline sales volumes remained relatively flat as motorists made more frequent trips but purchased fewer gallons per visit. In-store revenue also declined slightly. Meanwhile, diesel prices averaged $6.17 per gallon in September, up $2.72 from a year earlier, as global supply disruptions and strong export demand pushed prices higher. Gas stations near Houston faced particularly steep diesel price increases and declining sales volumes as exporters competed for fuel supplies. Continued supply constraints and weaker seasonal demand could put additional pressure on gas station profitability.
• Gas prices remain unusually high for autumn, putting pressure on gas station operators and their customers, according to AAA. The national average price for regular gasoline fell 5 cents to $4.36 per gallon during the week ended October 8, but remained at a record high for this time of year. It's the first October that average gas prices have exceeded $4 per gallon. Meanwhile, crude oil prices climbed back above $90 per barrel after briefly dipping into the $80 range. Hurricane Isaias could push fuel prices higher if it disrupts oil production or refineries. For gas stations, elevated fuel prices can increase inventory costs and discourage customers from purchasing fuel and higher-margin in-store merchandise. Volatile wholesale prices also make it harder for operators to maintain consistent profit margins.
• The Trump administration's rollback of federal greenhouse-gas regulations, culminating in the elimination of the EPA's endangerment finding, effectively removes meaningful national fuel-efficiency standards for cars and trucks, The New York Times reports. For gasoline retailers, this shift could slow the long-term decline in fuel demand by reducing pressure on automakers to improve vehicle efficiency or accelerate the transition to cleaner technologies. With civil penalties eliminated and California's stricter rules blocked, automakers face fewer incentives to produce high-mpg or alternative-fuel vehicles, potentially extending the market dominance of gasoline-powered vehicles. But, the absence of federal standards also increases policy uncertainty. States like California plan legal challenges, and future administrations could reinstate stricter rules, complicating long-term demand forecasting for gas stations. While the near-term environment may support steadier gasoline consumption, retailers must navigate a fragmented regulatory landscape and shifting consumer preferences as climate policy becomes more volatile.
• Producer prices for gasoline stations sank 18.7% in September compared to a year ago and were down 31.7% from their peak in April of this year, according to the latest US Bureau of Labor Statistics data. The sharp decline was primarily driven by shrinking retail fuel margins as wholesale gasoline costs rose faster than stations could raise pump prices. The average national price for regular motor gasoline was $4.36 per gallon in September; up 7.3% from August and 37.6% year over year, per the Bureau of Transportation Statistics. Employment by gas stations remained flat YoY in August, while the average industry wage rose 1% over the same period to $18.68 per hour, retreating from its high in January, BLS data show.

Industry size & Structure

The average gas station employs about 17 workers and generates about $82.3 million annually.

• The gas station industry comprises 8,925 firms that operate about 12,800 stations, employ 155,900 workers, and generate about $734.3 billion annually.
• The industry is concentrated at the top and fragmented at the bottom: the 20 largest firms represent 68% of industry revenue.
• While some gas stations are owned and operated by refiners, most are independent businesses that purchase gasoline from refiners and petroleum wholesalers and market it for resale to the public.
• Many gas stations are unbranded dealers that sell gasoline produced by different companies. Branded stations may not necessarily sell the gasoline their companies produce.
• According to the US Energy Information Administration, US gasoline consumption is gradually decreasing, primarily because vehicles are becoming more fuel-efficient.