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
Aug 26, 2024 - Gas Stations Adding EV Charging Stations
- 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.
- Producer prices for gasoline stations rose 9.2% in July compared to a year ago after falling 9.2% in the previous July-versus-July comparison, according to the latest US Bureau of Labor Statistics data. Like the retail price at the pump, producer prices for gas stations are volatile and largely determined by the price of crude oil and by supply and demand, with demand typically rising during the summer. According to the BLS’s consumer price index (CPI), retail gasoline prices rose 0.8% in July before seasonal adjustment. Employment by gas stations grew 1.3% year over year in June, while average industry wages rose 4.3% over the same period to $19.09 per hour, a penny shy of their peak in April, BLS data show.
- Sales of E15 fuel have risen for the past two years, and there's a strong indication the upward trend will continue, Fuel Market News reported in May. According to data from the Renewable Fuels Association, E15 sales surged last summer, with sales volumes from the Minnesota Department of Commerce (the only monthly E15 data set available) up 10% compared to summer 2022 sales. The EPA in February granted a petition from the governors of eight midwestern states to waive the 1-pound per square inch (psi) Reid vapor pressure (RVP) waiver for summer gasoline-ethanol blended fuels containing 10% ethanol (E10) in those states effective April 28, 2025. The Agency’s action also removed regulations that extended the 1-psi waiver to gasoline-ethanol blends between 10% and 15% ethanol (E15), per the Federal Register. E15 is available in 31 states at about 3,000 gas stations, according to the Department of Energy.
- US retail gasoline prices will average about $3.40 per gallon in 2024 and $3.30 per gallon in 2025, down from $3.50 per gallon in 2023, according to the US Energy Information Administration’s August 2024 Short-Term Energy Outlook (STEO). The August STEO forecasts 4% less consumption of gasoline in the US in 2025 than in 2019.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.