How Much Profit Do Gas Stations Make Per Gallon?

With more than 168,000 stations spread out across the nation, gas stations are a common sight everywhere in the United States. The constant demand for gasoline makes running a gas station a potentially lucrative business enterprise. What needs to be determined is how much money gas stations make per gallon.

Given that the profit margin for gas stations can fluctuate significantly based on a number of factors, the answer to this query is not simple. The National Association of Convenience Stores (NACS) estimates that in 2020, the average profit margin for a gallon of fuel will be around 15 cents. But depending on a number of variables like geography, competition, and supply and demand, this number may change.

Many gas stations also profit from the sale of convenience stores, vehicle washes, and other services in addition to selling gasoline. In actuality, non-gasoline sales account for almost 70% of gas station income, according to NACS. This implies that profitable convenience stores and other services can help gas stations generate more revenue than those that only sell fuel.

It’s crucial to keep in mind that there are other viable business ventures besides running a petrol station, even though it might be a potentially lucrative one. The top five most lucrative industries in the United States, according to data from financial information provider Sageworks, are accounting, legal services, real estate leasing, dentistry offices, and outpatient care facilities. These sectors could be more profitable than gas stations because they all have profit margins exceeding 15%.

Depending on the sector and location, a small business’s good annual income and turnover can vary greatly. According to a report by Guidant Financial, the top industries for small businesses in 2021 were business services, health and beauty, and food and restaurant, with an average revenue of $592,000. A business should strive for a turnover that is two to three times its running expenses, however a decent turnover for a small business can also vary greatly.

The most successful form of store again depends on a number of variables, including location, competition, and consumer demand. But sectors like technology, healthcare, and e-commerce are currently expanding and becoming very profitable.

In conclusion, while operating a gas station might be a potentially lucrative business venture, the profit margin for gas stations varies significantly based on a number of variables. Setting realistic income and turnover objectives based on the industry and location of the firm is vital. You should also take into account alternative, potentially more lucrative industries.