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What is the average net profit per gallon of gasoline for gas stations in Wilmington?

Ken Little
StarNews
Gas pump

The average profit range is five to eight cents per gallon of gasoline. (StarNews file photo)

Gary Harris, of the N.C. Petroleum & Convenience Marketers Association, said the profit ratio “differs from company to company by business model.”

While the NCPCM does not track pricing or collect that type of data, “I would think that an average range would be five to eight cents per gallon,” Harris said.

“Some months they make money, some months they lose money depending on competition in the market and national pricing trends.”

Harris said that by going to http://www.api.org/aboutoilgas/gasoline/ and clicking on the link under gasoline, “It shows that retailing is about 7 percent of the cost of a gallon of gas.

“At $3.50 a gallon, that equals about 25 cents, of which all overhead has to be taken to get your net – I think that is why the five to eight cent range is probably a good ‘guesstimate,’” Harris said.

He said overhead costs include a few cents for freight to haul the gas and other expenses related to facilities, insurance and personnel.

User-contributed question by:
Carol Phelps

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One Response to “ What is the average net profit per gallon of gasoline for gas stations in Wilmington?”

  1. On July 16, 2011 at 1:04 pm Bill wrote:

    Good answer to the question. But the intent of the question may run deeper; the issue of “who’s making all of the money”? The media (?) blames it on international unrest and shortages, But what’s really going on? Back in the early 70′s we were almost out of oil, but all it did was raise prices, and probably profits for someone.