Thread: Gas prices
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  #186  
Old 12-29-2014, 01:36 PM
specknation specknation is offline
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Join Date: Jan 2011
Location: Hammond
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Quote:
Originally Posted by specktator View Post
I am a fuel distributor and I can promise you your buddy is making more than $.05 a gallon. Especially right now with these crazy prices. Unless he owns a Race Trac or Tobacco Plus or something similar. Which they are making more than $.05 a gallon as well. Margins for distributors are very minimal though.

Rack Price on Unleaded today is $1.297 +
.384(taxes) +.003 (fees)=$1.684

The distributor probably makes $.08-.10 a gallon off him so he's getting it for $1.78-$1.80/gallon.

But if he's only adding $.05 to it, he must be moving a whole lot of fuel or getting screwed by his distributor. Tell him to call me!!
I have interest in a gas station here locally in the Hammond area, and .04 to .06 is the average profit on a gallon of gas. It's rare to make any more than that, and if you figure keeping gas pump equipment pumps, credit card readers, etc... that figure is more like .03 per gallon, its just a reason to get people in to buy other things.
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