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- 06 Mar
NACS Gas Price Briefing
NACS held a media briefing on gas prices and one of the highlights was their report on the average retail fuel mark-up thus far in 2012. For the past six years going back to 2006, the retail fuel mark-up as a percent of price was between 5.1% and 6.0%. So far in 2012, the retail fuel mark-up has been only 3.8%.
It’s a well known industry fact that as retail fuel prices increase, c-stores suffer from low retail fuel margins. The long suffering fuel price increases so far in 2012 have been rough on retail fuel margins across the US. Couple the low margins with the continued trend of lowering fuel volumes, and certainly the c-store retail fuel business is not for the faint of heart.
As the retail fuel business continues to be more and more competitive, expect to see continued consolidation, where those who have invested in fuel price management systems are the only ones who are able to survive.
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