Gas Stations
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 9,100 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.
Volatile Fuel Costs
With such low margins, gas stations have difficulty absorbing significant and sudden fuel cost increases.
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.
Industry size & Structure
The average gas station employs about 7-8 workers and generates about $7-8 million annually.
- The gas station industry comprises 9,100 firms that operate about 12,900 stations, employ 96,200 workers, and generate about $99 billion annually.
- The industry is concentrated at the top and fragmented at the bottom: the 20 largest firms represent 56% 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.
Industry Forecast
Gas Stations Industry Growth
Recent Developments
Dec 26, 2024 - Producer Prices Rebounding
- The producer price index for gasoline stations, which measures prices before reaching consumers, jumped 13.1% in November compared to a year ago after falling 2.9% in the previous November-versus-November annual comparison, according to the latest US Bureau of Labor Statistics data. At retail, the consumer price index for gasoline rose 0.6% in November versus October after either falling or posting a flat comparison in each of the previous six months, per the BLS. Gas station employment fell 3.4% in October compared to a year ago, while average industry wages rose 3.1% over the same period to $18.97 per hour, BLS data show.
- The Energy Information Administration (EIA) is predicting lower gasoline and diesel prices in 2025 after the estimated cost of crude oil fell following the OPEC+ decision in December to delay production cuts until the end of 2026. Crude oil prices should hover around $74 per barrel in 2025, down from the EIA's estimated $76 per barrel earlier this year as refinery capacity decreased by about 3% than at the start of 2024, according EIA economist Jeffrey Barron who said "We expect retail and diesel retail prices are slightly down compared to 2024 annual average levels.” Nationwide, peer gallon gasoline and diesel prices will average $3.20 and $3.60, respectively, per the EIA. The agency's forecast does not take into consideration political factors, such as President-elect Donald Trump’s threats to raise tariffs on Canada and Mexico, which could inflate energy costs, including the price of gasoline, according to Politico.
- Gas prices are falling ahead of the November election, The New York Times reported in October. The price at the pump is at its lowest level since February, with the price per gallon approaching or below $3 in most states, including the crucial swing states of Georgia, North Carolina, and Wisconsin, according to NYT. Retail gas prices fell 4.1% in September and have declined or been flat for four of the past five months amid slowing global growth and record US oil production that have dampened crude oil prices.
- The US added about 700 new public fast-charging stations for electric vehicles in the second quarter, an increase of 9% in three months, according to a Bloomberg Green analysis of Department of Energy data. At that rate, US public EV chargers are set to surpass gas stations in eight years, according to Bloomberg. The second quarter additions brought the nationwide total to nearly 9,000. In Q2, gas station operators added EV charging stations at a rapid pace, with Shell debuting 30 new charging stations, while Enel opened 11, Pilot Travel Centers opened eight, and Flying J rest stops added seven, according to the federal tally cited by Bloomberg. The total as of Aug. 22nd from the Energy Department’s Alternative Fuels Center put the number of available fast-charging public stations at 10,770 for a total of 44,666 charging ports in the US.
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