My Brother-in-law runs a gas station. The margin on fuels is so tight he has to chase the price up and down to make much at all on gas. The margin is usually less than a dime to him. If he did not raise prices as they went up he would not be able to make up what he losses when they go down.
He has shown me the books. The profit is in the convenience items. If you buy $20 of gas: that would be about 6.5 gallon or a 65 cent profit. You buy a fountain drink for 99 cents and he makes 75 cents on it. Beer and candy bars have an even better margin. So a few hundred dollars of soft drink mix and water will make him more than a few thousand dollars of gas.
I used to own part of a fuel distributorship. Good friend needed help getting started. He was making four cents a gallon on diesel in 1988. His price was set by the company he bought from. If he marked it up any higher they would not sale him any more. So he had to store a semi load and deliver it to make four cents a gallon on diesel fuel. Call it #2 home heating fuel and he got to make six cents per gallon. He was able to buy me out after two years and I was glad to get out of it.
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Today's Featured Article - Earthmaster Project Progress Just a little update on my Earthmaster......it's back from the dead! I pulled the head, and soaked the stuck valves with mystery oil overnight, re-installed the head, and bingo, the compression returned. But alas, my carb foiled me again, it would fire a second then flood out. After numerous dead ends for a replacement carb, I went to work fixing mine.I soldered new floats on the float arm, they came from an old motorcycle carb, replaced the packing on the throttle shaft with o-rings, cut new ga
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