2007-02-17 11:52:13 · 6 answers · asked by lankerdleemp 2 in Cars & Transportation ➔ Maintenance & Repairs
I worked at a service station for a year in 2005. In my state the law mandates the minimum amount gas stations can charge - at least $0.08 more per gallon than they pay for the gas. This law was enacted back when gas was around $1.00/gallon and has never been updated.
Retail gasoline is a hugely competitive business. If your a gas station owner and you have at least one other competing gas station within a block or two or your location, your pretty much going to be forced into charging just the 8 cents over cost because that is what everyone else is doing. 8 cents per gallon, while not a great profit, was at least livable when gas was around a dollar. When gas got to be $3.00/gallon then not so much.
Most people these days pay by credit card or debit card at the pump. The credit card company charges the gas station a fee on each transaction - usually between 3-4% of the sale. If your selling gas at $3.00/gallon and 8 cents over your cost but you have to give up 9-12 cents per gallon in credit card fee's... Well, you get the idea.
Ever wonder why the local mom-and-pop independent gas station is a thing of the past?
In other states of course it may be different but probably not much. It may even be worse.
2007-02-17 13:28:08 · answer #1 · answered by Naughtums 7 · 0⤊ 0⤋
Individual gas stations in the United States do not have much control over gasoline prices. The wholesale price of gasoline is determined according to area by oil companies which supply the gasoline, and their prices are largely determined by the world markets for oil. Individual gas stations are unlikely to sell gasoline at a loss, and the margin—typically between 7 and 11 cents a gallon—that they make from gasoline sales is limited by the fact that the market is highly competitive. A gas station which charges significantly more than the wholesale price will lose customers to other gas stations. Because of this, most gas stations sell higher-margin food products inside their convenience stores.
2007-02-17 12:02:19 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Only 3-4 cents below the retail price. The margin is very thin. Most money is made on candy, sodas and the like.
2007-02-17 11:56:44 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It is just a few cents less than it is sold at. Most of the profit goes to the state and federal government in taxes.
2007-02-17 11:56:47 · answer #4 · answered by Barkley Hound 7 · 1⤊ 0⤋
They gross about 15 cents out of the posted price. Of course, out of that they have to pay all business expenses.
2007-02-17 11:58:57 · answer #5 · answered by Anonymous · 0⤊ 0⤋
they say its 2 or 3 cents less than the posted price
2007-02-17 11:55:08 · answer #6 · answered by doug b 6 · 0⤊ 0⤋