Gas Stations

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 10,000 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 9 workers and generates about $6 million annually.

    • The gas station industry consists of 10,000 firms with about 16,500 stations.
    • The industry generates about $99 billion annually and employs 147,600 workers.
    • Some retail outlets are owned and operated by refiners, while others are independent businesses that purchase gasoline from refiners and markets for resale to the public.
    • Most gas stations are independent operators with 1,262 individual proprietorships
                          Industry Forecast
                          Gas Stations Industry Growth
                          Source: Vertical IQ and Inforum

                          Coronavirus Update

                          Jun 7, 2022 - Finances Top Consumer Travel Concern
                          • The pandemic reduced global demand for motor fuels as many people worked from home and traveled less. As COVID-19 cases have fallen, many travel industry insiders expected a summer release of pent-up demand, including road trips and car rentals. However, a rebound in travel-related fuel consumption could be tempered by high gasoline and car rental prices. According to a recent survey by Deloitte, 44% of those surveyed said concern about finances was their top reason for not traveling this summer, followed by health concerns (33% of respondents). Those who do plan to travel expect to take two trips. About 57% of travelers plan to take road trips, while 51% plan to fly.
                          • Pandemic conditions have improved significantly since the height of the Omicron wave, but the return to workplaces has been slow. As of February 23, the average workplace occupancy was 36.8%, according to data gathered from the top 10 ten cities monitored by security firm Kastle Systems. By June 1, the average workplace occupancy rate was 41.2%. In a survey released by WFH Research in May, 51.4% of respondents said their employer didn’t offer work from home (WFH). About 27% of those surveyed said their employer had no clear WFH plan, 16% said their employer offers hybrid working schedules, and just over 13% said their workplace was all WFH.
                          • Seasonally adjusted vehicle miles traveled (VMT), an indicator of gasoline demand, increased 2.8% month over month in March 2022 but fell 0.5% year over year, according to the Federal Highway Administration. March VMT was up 1.8% compared to March 2019.
                          • Sales in the gas station industry, which includes establishments with convenience stores, decreased 2.7% in value month over month and 37.2% year over year in March 2022.
                          • Higher gasoline prices may be affecting how often consumers drive. On June 7, the US average price for regular gasoline was $4.92 per gallon, according to AAA, up 61% from a year earlier. In a recent CNBC poll conducted by Momentive, 42% of respondents said they would cut back on driving if inflation persists. Nearly 40% of respondents said they had cut back on driving in the last six months due to higher prices. More than three-quarters of survey respondents reported worrying that higher prices will prompt them to rethink their financial choices.
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