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NOTEBOOK – ONE GOOD READ: Why gas stations don’t make money from gas sales

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The price of a gallon of gas is on the rise, but it’s not the owners of fuel stations who are profiting from the increase, writes Zachary Crockett for the Hustle. Most gas stations barely turn a profit on their core product, and when the price of oil goes up they may even take a loss on it, Crockett writes. About 51% of the cost of a gallon of gasoline goes to crude oil; 17% each goes to refining and taxes; 8% goes to transportation; and 7% to markup, according to the article. “Assuming daily sales of 4k gallons at $0.05/gallon, your typical station might only bring home $200-300/day from gas,” writes Crockett. So where do the owners of stations make their money? Inside convenience store sales. While inside-the-store sales of things like beer, candy and snacks account for about 30% of the average station’s revenue, they bring in 70% of the profit. Eighty percent of all U.S. gas stations have a convenience store on-site, according to Crockett.