High Prices, Lower Volume Mark Motor Fuel Results

The average price for a gallon of gas last year was $3.54

High fuel prices drove convenience store sales to new heights last year. The average price for a gallon of gas was $3.54, up from $2.74 in 2010.

Meanwhile, gallons sold continued to decline. Volume fell by more than 51,000 gallons per store last year, driven by the combination of a slower economy, high unemployment and more fuel-efficient automobiles coming to market.

On the bright side, gross margin cents per gallon and gross margin dollars per store were up 25.5 percent and 10.7 percent, respectively.

High fuel prices persisted throughout last year and into the first quarter of 2012 before finally moderating last month, but convenience store retailers should expect continued volatility in fuel prices and continued declines in volumes pumped.

Despite this volatility, though, the percentage of c-stores selling motor fuel continues to increase. Last year, almost 82 percent of all c-stores sold motor fuel.

The highest concentration of fuel-selling c-stores is within the Midwest and South.

On a state-by-state basis, North Dakota and Nebraska have the most c-stores that sell fuel. Conversely, Washington, D.C. and New Jersey have the fewest c-stores selling motor fuel.