Rising Pump Prices Drive Fuel Dollars Skyward

Price per gallon hits highest level since 2008

Convenience stores that sell motor fuel saw their average sales price per gallon rise by a whopping 17.2 percent last year to $2.74 per gallon, a figure not seen since the 17.5-percent increase to $3.23 per gallon in 2008.

As a result, while gallons pumped per store were essentially flat at 1.26 million gallons, motor fuel sales per store rose 16.9 percent last year to $3.4 million. The volatility in prices also produced higher motor fuel gross margins for convenience retailers. Gross margin cents per gallon increased 8.7 percent to 16.34 cents, while gross margin dollars per store were up 8.5 percent to $205,357, according to the CSNews 2011 Industry Report.

On a regional basis, prices at the pump remained highest in the west and east regions of the United States and lowest in the Gulf Coast region.

Last year, 80.2 percent of convenience stores sold motor fuel, a slight increase from 79.8 percent in 2009. By region, the Midwest had the highest percentage of convenience stores that sell fuel, at 86.5 percent, followed by the South with 85 percent. The Northeast had the lowest percentage of convenience stores selling gas, at 61.9 percent.

The states with the highest percentage of c-stores selling fuel were: Nebraska (95.9 percent); North Dakota (95.9 percent); Kansas (95.1 percent); Iowa (95 percent); and Wyoming (94.8 percent). The states with the lowest percentage of c-stores selling gas were: New Jersey (44.2 percent); Massachusetts (52.6 percent); New York (56.7 percent); and Rhode Island (60 percent). — Don Longo