Convenience stores sell the majority of gasoline purchased in the country -- more than 80 percent of all fuel sold in the United States in 2006. Of the 146,294 convenience stores in the United States, 115,157 sell motor fuels (79 percent). (Unless otherwise stated, all information is from the 2007 NACS State of the Industry report.)

Industry information:

• In 2006, convenience stores sold $405.8 billion in motor fuels, a more than 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 2006 (71.3 percent). However, because of low margins, motor fuels sales contributed only about one-third of total store gross margins dollars (33.9 percent).
  
• The bulk of a convenience store's motor fuels sales are gasoline -- 92.7 percent. The rest comes from diesel fuel (7.2 percent) and "other fuel" such as kerosene (0.1 percent).
  
• Unleaded regular gasoline accounted for 84.1 percent of the gasoline sold at convenience stores in 2006. 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 15.9 percent in 2006.
  
• Like previous years, 2006 saw extreme price volatility for motor fuels. Prices averaged $2.54 per gallon, a sharp increase from the average of $1.55 in 2003. While prices climbed, motor fuels profit margins continued to shrink. Gross margins in 2006 were 13.9 cents per gallon. After incorporating expenses, such as credit cards fees, which are 2.5 to 3 percent, operating expenses, depreciation and taxes, profit margins in 2006 typically were two cents per gallon. On a percentage basis, margins in 2006 were 5.8 percent, the lowest since 1983.
  
• In 2006, gasoline theft cost the U.S. convenience store industry $122 million, a sharp decline from the $300 million reported in 2005 and the $237 million reported in 2004. The average loss per store was slightly more than $1,000, and that figure is conservative, since it is based on all convenience stores that sell gasoline, including those in states that mandate full-serve (New Jersey and Oregon) and stores in areas where prepay in the norm, such as California and many major metropolitan areas. Gasoline theft has declined since September 2005 when more stations began mandating prepay for fuel.

Store averages:

• The average convenience store posted $2.8 million in motor fuels sales in 2006.
  
• The average store sold 101,650 gallons per month.
  
• The average convenience store had 8.6 fueling positions in 2005.
  
• New convenience stores in urban areas (populations 50,000 or greater) require an investment of $405,277 for motor fuel equipment and $56,085 for motor fuel inventory. For rural stores, the figures are $363,351 and $49,153. For both types of stores, motor fuel equipment is roughly half of total equipment costs for stores.