How much profit would you say a gas station makes on each gallon of gas it sells?
25%? 20%? 15%?
Try 4 percent. That’s right, a typical gas station grosses about 4%, or between $.12 and $.14 per gallon with gas at $3.45 per gallon. That’s gross profit, so after subtracting payroll costs, rent, and credit card fees there’s not much left. No, the real money in owning a gas station is in the alcohol and cigarette sales.
But with gas at an all-time high someone has to be making buckets of cash, right? And indeed, someone is. Exxon Mobil recently made history by posting the highest quarterly and annual profit of any U.S. company…ever. To the tune of $1,300 per second for an entire year. I’m a capitalist, but this makes me ill. [Update: Read the comments for why these numbers might be misleading and why perhaps I shouldn’t feel ill.]
One interesting side effect: with scooters hovering around 100 mpg, sales are up 200% in the U.S.
[tags]gasoline, exxon mobil, scooters[/tags]