Gas stations only make $0.10 per gallon

I thought they are one of the highest incoe earners in the business. Thanks for sharing.

I had a professor in college who used to own a gas station in the city and he told us that it's a very risky business. Not only does he have to cope with the fluctuating price of gas, he also has to rely on a small profit margin to draw in customers. Because of this, you'll notice that many gasoline stations have stores that sell drinks and snacks. These stores are the cash cows for gas stations because goods are priced higher than usual. Moving on, the biggest earners in the industry are definitely big companies that actually drill for oil and re-sell it. With the cost of gas soaring nowadays, owners of gasoline stations will definitely be at a disadvantage because they'll have to be more accurate with forecasting demand.

Gas stations are not going to stay in profit in the future, as we are slowly shifting from the fossil fuels to alternate fuels. The global price hike in fuels, is mainly caused by the increase in demand. The petroleum reserves are slowly running out and in 10 or 20 years, they may completely runout, even though people say that it will be there for another 60 years. In any case, after 20 years, fossil fuels will be one thing that the common man wont be able to buy. The price will be so high by that time. No wonder, this particular business is not making any profit. In India, the oil companies are suffering huge losses, as the government is trying its best to keep the oil prices steady. Future really look bleak for people who depend on oil.

Wow that is horrible I never realized they made so little. That really does make you wonder if they will be able to stay in business. I think actually the stations with the higher priced galloons will go out of business first before the ones that offer cheaper gas they get a lot more business.