Gas Stations Industry Overview

Excerpt from Gas Stations Report

Companies in this industry primarily sell fuel for motor vehicles; they may also and may perform car washes or car repairs or inspections. Although no major companies dominate, large oil companies own some stations.

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 fragmented: the top 50 companies generate less than 50 percent of revenue.

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 services or car washes. Some truck stops offer food, phones, showers, and lounges.