STATEN ISLAND, N.Y. – On Staten Island, more and more gas stations are opening up secondary businesses, such as Dunkin’ Donuts shops, car washes and convenience stores, to make up for a shrinking profit in gas sales.

With an average markup of 12 to 15 cents a gallon, low profits from gas sales are quickly eaten up by credit card fees the Staten Island Advance reports. 

“The gas doesn’t make it for you no more. The gas is like milk. Give it away for free to get the customers in,” said Ash Gaied, owner of the BP Amoco at Reid Avenue and Hylan Boulevard, explaining the business model of offering steep discounts on staple items to lure shoppers in to buy more frivolous items.

More and more station owners are adding amenities like car washes or convenience stores, said Ralph Bombardiere, executive director of the New York State Association of Service Stations and Repair Shops. He said in addition to the donut shops and delis opening in this borough, other shops like UPS Stores or Subway restaurants are being opened upstate and on Long Island.

It’s all about the alternative profit center, Bombardiere said. Some station owners have decided to cut their losses entirely, shuttering their pumps in favor of opening a completely different type of business with a higher value, he noted.

“Staten Island is particularly vulnerable because of its proximity to New Jersey,” Bombardiere said. Drivers might stop into an Island station to fill up on the bare minimum it will take to get across the bridge for a cheaper fill-up. (New York State gasoline taxes are among the highest in the nation at 59.6 cents per gallon, while New Jersey has among the lowest at 32.9 cents per gallon, according to the American Petroleum Institute.)

And with newer cars manufactured with high-tech computer diagnostic systems, and parts designed for higher efficiency, “we’re starting to see the demise of the traditional service station,” which, historically, has been the major source of non-gas revenue, Bombardiere said. Today, mechanics require far more training in the complicated electronic systems.