Gas Station Profit Margin Gas Pump Gasoline Price

[maddielubeski]

You cant put a margin on independant gas station margins. Number 1 a gas station buys the gas from a wholsaler. They then have to have a comparable price to the next gas station down the street. Credit cards cost roughly 4% of the price, and then they have to pay rent, property tax, and employees. The margin fluctuates day to day depending on the time of the delivery, the spot market going forward. Your point is good if someone is wondering why gas station prices are different than what yo

[Begbucks]

@maddielubeski But the 23 cents is the national avg. which I might add in minimal when compared to other products

[maddielubeski]

Huh

[Begbucks]

@maddielubeski ?

[Sneakey]

you forgot

$.15 /gal distrobution cost

$.33 /gal refinery cost (refinery profit)

$.08 /gal local sales tax

$.35 /gal state excise tax

$.18 /gal federal excise tax

$.08 /gal credit & debit card fees

$.02 /gal state underground storage tank fee

(most of these numbers fluctuate daily)

[Begbucks]

@Sneakey Hmm. that amounts to $1.19 a far cry from $4 & not the station's margin, merely fluff added to the total cost, not to mention;

wholesale skimming by the IMF which is about 35% of the Middle Market (Source: Lindsay Williams)

But the poor saps pumping still make out less than quarter in most instances.

[ParaseveCPA]

How do you calculate profit margin based on the price you bought and sold? If you use profit margin per gallon why not use straight what you bought in dollars vs want you sold in dollars?

thanks

[Begbucks]

@ParaseveCPA The point that I was trying to make was in that gas station profit margin tends to be fixed atleast by the national chains at .23 per gallon not allowing a higher or lower margin.

[aakashpatel1982]

i don't know what kind of research you have done but i can not understand that are you saying that gas station makes .23cents if thats u saying then you prob want to make some more research

[Begbucks]

@aakashpatel1982 thats the national avg. for stations that have a quickie mart such as Mobil Gas or Shell not your independent filling station where margins can be greater

[aakashpatel1982]

i don't know what kind of research you have done but i can not understand that are you saying that gas station makes .23cents if thats u saying then you prob want to make some more research