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
Feb 26, 2025 - Prices Hit New High
- Producer prices for gas stations climbed to a new high in December, with the producer price index for gasoline stations, which measures prices before reaching consumers, rising 12.8% in December compared to a year ago, according to the latest US Bureau of Labor Statistics data. At retail, the consumer price index for gasoline (all types) declined 3.4% year over year in December. Meanwhile, employment by the industry declined 3% in December compared to a year ago, while average industry wages for gas stations and fuel dealers rose 2.2% over the same period to $18.39 per hour, BLS data show.
- President Trump has moved to pull the plug on the National Electric Vehicle Infrastructure program (NEVI), his predecessor’s initiative to build a nationwide network of EV charging stations, Politico reports. In February, Trump instructed states not to spend federal funds previously allocated to them under the program. In a letter to state transportation directors, the Federal Highway Administration said that it was scrapping guidance issued in 2023 implementing the NEVI program. However, the letter says states will be able to receive reimbursements for “existing obligations” to design and build stations "in order to not disrupt current financial commitments.” Whether Trump can choose not to spend funds allocated by congress is likely to face legal challenges. Still, the administration’s move to block future EV charging station construction and, more broadly, Trump’s pro-fossil-fuel policies, brighten the outlook for suppliers of traditional motor fuels.
- 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.
- 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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