Motor Fuels
The availability of motor fuels is an essential component of the nation's economy, and the convenience store industry is America's primary source for fuel. In fact, convenience stores sell approximately 80 percent of the gasoline in the United States every year. In 2008, the industry sold $450.2 billion worth of motor fuels, representing 72.1 percent of total industry revenues.
As the leading retailer of motor fuels, the convenience store industry has a vested interest in legislation and regulations that affect the production, distribution and ultimate price and supply of motor fuels at the retail level of trade. In addition, convenience stores have a specific responsibility to securely store and dispense motor fuels, a responsibility that is constantly scrutinized by regulators at the federal and state level.
NACS recognizes the unique role of the convenience store retailer within the motor fuels system and represents the industry's interests before Congress and the federal government.
The national debate over energy policy in general and the future of the liquid motor fuels market in particular has serious implications for the business model of the convenience and petroleum retailing industry. Consequently, NACS is engaged in the discussions affecting this broad market.
Federal law requires the petroleum market to sell an increasing amount of renewable fuels each year. However, retailers are not able to sell the mandated volumes because their equipment is not legally certified to do so. NACS is working to resolve this situation.
The run-up to $140 per barrel crude oil in 2008 led many in Congress and throughout the nation to question the impact of speculative investment on commodities markets and to consider whether to increase regulations governing such behavior. NACS has joined a coalition to endorse legislation that will increase transparency and prevent market manipulation.
Some consumer groups allege that retailers have defrauded consumers by selling motor fuels at temperatures higher than the reference standard of 60 degrees F. Lawsuits, regulatory and legislative proposals seek to change the way retailers sell fuel. NACS is countering these allegations by insisting upon an analysis of the facts.
Spurred by concerns about retail motor fuel prices, Congress is considering legislation to make “price gouging” a federal offense and to impose civil and criminal penalties on violators. NACS is working to ensure any legislation considered by Congress would protect the business operations of honest retailers.
In 2005, Congress increased the inspection and enforcement requirements for state underground storage tank offices. These include additional requirements for tank owners, especially with regards to operator training.
The additional requirements enacted by Congress require additional resources. NACS is working to ensure the states receive the money they need from the federal government to avoid an increase in fees on tank owners.