Gas Stations Industry Profile

The US gas station industry includes about 22,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $115 billion. Although no major companies dominate, large oil companies own some stations. The industry is fragmented: the top 50 companies generate less than 50 percent of revenue. Revenue for the industry can vary significantly from year to year, depending on the price of crude oil.

The industry includes some truck stops but excludes establishments that are combination gas station/convenience stores. Convenience Stores are covered in a separate industry profile.

COMPETITIVE LANDSCAPE

The volume of consumer and commercial driving drives demand. The profitability of individual companies depends on the ability to secure high-traffic locations, generate high-volume sales, and buy gas at the lowest possible cost. Large companies have advantages in purchasing and finance. Small companies can compete effectively by having superior locations. The industry is capital-intensive: average annual revenue per worker is about $1,000,000.

As more retailers added gas to their merchandising mix, the competitive landscape for gas stations expanded to include convenience stores, mass merchandisers, warehouse clubs, and grocery stores.

PRODUCTS, OPERATIONS & TECHNOLOGY

Fuel for motor vehicles accounts for about 90 percent of industry sales. Major products sold include unleaded regular gas and diesel fuel. Gas stations also sell unleaded mid-grade and unleaded premium gas. Truck stops tend to sell more diesel fuel, since most commercial vehicles run on diesel. Companies may offer repair ...