Convenience stores sell the majority of gasoline purchased in the country — more than 80 percent of all fuel sold in the United States in 2008. Of the 144,875 convenience stores in the United States, 114,673 sell motor fuels (79 percent).

Industry Information

• In 2008, convenience stores sold $450.2 billion in motor fuels, a nearly four-fold increase from 10 years earlier. In 1995, convenience stores sold $79 billion in motor fuels; in 1985, motor fuels sales at convenience stores were $25 billion and in 1975 they were $0.5 billion.
• Motor fuels sales accounted for more than two-thirds of the convenience store industry's sales in 2008 (72.1 percent). However, because of low margins, motor fuels sales contributed less than one-third of total store gross margins dollars (31.7 percent).
• The bulk of a convenience store's motor fuels sales are gasoline — 92.3percent. The rest comes from diesel fuel (8.3 percent) and "other fuel" such as kerosene and propane (0.3 percent).
• Unleaded regular gasoline accounted for 82.9 percent of the gasoline sold at convenience stores in 2008. Sales of premium and mid-grade have declined over the past few years as consumers trade down octane levels when prices increase. This leads to some consumers not returning to higher octanes as prices decline. The sale of mid-grade and premium has declined from 30.2 percent of gasoline gallons purchased in 1998 to 17.1 percent in 2008.
• 2008 saw the most extreme price volatility for motor fuels in recent history. According to the Oil Price Information Service (OPIS), weekly average retail prices fluctuated from a low of $1.62 to a high of $4.11 for an annual average price of $3.24. During the first half of the year, when prices were rising, retail margins were shrinking. Average gross margins were 11.7 cents per gallon through June. As crude oil price plummeted, retail gasoline prices also dropped and retailer margins improved to such a degree that the annual average margin was 18.0 cents per gallon. However, after incorporating expenses, such as credit cards fees — which are 2.5 to 3 percent — operating expenses, depreciation and taxes, profit margins in 2008 typically were about five cents per gallon (average breakeven on fuel sales is 12.8 cents). On a percentage basis, gross margins in 2008 remained very low at 5.5 percent, with actual profit only 1.6 percent.

Store Averages

• The average convenience store posted $3.9 million in motor fuels sales in 2008.
• The average store sold 118,526 gallons per month.