Wholesale Distributor

Convenience Store News

Convenience Store News
Because fuel is so essential to daily lifeA�and consumers are so price sensitive,A�gasoline is unlike any other productA�sold in the United States today. Gas prices are often the part of dailyA�conversations, and customers will seekA�out the best a�?deala�? that they can find.A�Yet, while customers know the price, they dona��t necessarily know about theA�fuel or about what goes into the priceA�or about the stores that provide 40A�million fill-ups every day.

Convenience stores sell 80% of the fuelsA�purchased today. While motor fuelsA�drive sales dollars for convenienceA�stores, in-store sales drive profit dollars.A�On average, 71% of a storea��s total salesA�are motor fuels, but motor fuels onlyA�account for 36% of profit dollars. ThatA�is because retail fuel margins are veryA�thin, averaging less than a nickel perA�gallon. Retailers know that consumersA�are incredibly price sensitive and willA�go somewhere else to save a few centsA�per gallon of gasoline.

For more than a decade, NACS hasA�developed its annual Retail FuelsA�Report to explain market conditions,A�especially as they relate to priceA�swings. While the circumstances mayA�be different year-to-year, the overallA�pattern in the petroleum markets isA�surprisingly familiar. The first weekA�of February traditionally marks theA�beginning of the spring transition toA�summer-blend fuels for the petroleumA�industry. Since 2000, gasoline prices have increased, on average, more thanA�50 cents between the first week inA�February and the time of the seasonalA�high price, which occurs typically in late May. In both 2007 and 2008,A�gasoline prices jumped more than $1.00 in that period.


Convenience Store Update:

Key Facts and Figures

  1. The 123,289 convenience stores that sell fuels in the United States cumulatively sell 80% of the motor fuels purchased in the country.
  2. Americans travelled 8.038 billion miles per day in 2012.
  3. There were 156,065 total retail fueling sites in the United States in 2012. This is a steep and steady decline since 1994, when the station count topped 202,800 sites. This count includes convenience stores, grocery stores, truck stops, traditional gas stations and low-volume locations like marinas.
  4. While about half of the convenience stores selling gasoline are a�?brandeda�? outlets selling a specific refinera��s brand of fuel,
  5. they are typically not owned by the refiner. Major oil companies own and operate less than 0.4% of all convenience stores in the
  6. U.S.: Chevron Corp. (415 stores), Shell Oil Products US (38 stores), ExxonMobil Corp. (13 stores), BP North America (3 stores) and
  7. ConocoPhillips Inc. (2 stores).
  8. Alternative fueling stations are growing across the country. There are now about 8,000 stations (about 5% of all fueling outlets) that offer public access to alternative fuels in the lower 48 states.
  9. The average American uses 1.8A�barrels of oil every month, or 0.053A�barrels per day.
  10. U.S. gasoline demand was 8.73A�million barrels per day in 2012,A�or about 40 million fill-ups perA�day. U.S. gasoline demand hasA�decreased 6.1% since peaking inA�2007.
  11. For small light duty vehicles (theA�190.2 million passenger vehicles,A�vans, small trucks and SUVs withA�a wheelbase of 121 inches orA�less), the average fuel usage wasA�453 gallons consumed per year,A�which averages out to 1.24 gallonsA�per day or 8.7 gallons per week.
  12. These vehicles had an average fuelA�efficiency of 23.5 mpg and travelledA�29.1 miles per day.
  13. Brent spot oil prices averagedA�$111.65 per barrel in 2012. TheyA�are expected to average $105.17 inA�2013.
  14. U.S. retail (regular) gasoline pricesA�averaged a record $3.63 in 2012,A�and are expected to average $3.44A�per gallon in 2013. On-road dieselA�fuel prices averaged a recordA�$3.97 per gallon in 2012, and areA�expected to decrease to $3.87 perA�gallon in 2013.
  15. Since the final implementationA�of the Clean Air Act AmendmentsA�in 2000, the seasonal transitionA�to summer-blend fuel has helpedA�gasoline prices rise significantly.
  16. The average annual increase is 54A�cents.
  17. Gasoline taxes averaged 48.8 centsA�per gallon in January 2013.
  18. Nearly three quarters (72%) of allA�transactions at the pump are byA�plastic a�� either debit or creditA�card.
  19. Factoring in all gasoline sales,A�credit and debit card fees averagedA�5.7 cents per gallon in 2011.
  20. The gross margin (or markup) onA�gasoline in 2012 was 18.4 cents/gallon, or 5.1%. Over the past fiveA�years, gross margins averaged 16.9A�cents per gallon.
  21. Motor fuels sales contributedA�to roughly one-third of totalA�convenience store gross marginA�dollars (35.9%).

The U.S. petroleum distributionA�industry includes:
a�? A�144 refineries
a�? A�38 Jones Act vesselsA�(U.S. flag ships that moveA�products between U.S.A�ports)
a�? A�3,300 coastal, Great LakesA�and river tank barges
a�? A�200,000 rail tank cars
a�? A�1,400 petroleum productA�terminals
a�? A�100,000 tanker trucks
a�? A�200,000 miles of oil andA�refined product pipelines