What is the OPIS rack price?
OPIS is the oil industry’s rack price benchmark. As an independent wholesale price reference, the industry relies on our benchmark rack data to ensure that fuel transactions and supply contracts are accurate and fair. Rack price delivery type, formats and frequency are flexible.
What is gasoline rack price?
The rack price is the price of gasoline or diesel, loaded onto a truck at the distribution terminal, ready for delivery to end users or retail stations.
What is the markup on gas?
Retailers Make Very Little Selling Gas Generally, the markup (or “margin”) on a gallon of gas is about 15 cents per gallon (gross profit before expenses). Factoring in expenses, which include rent, utilities, freight, labor and credit card fees, a retailer is left with about 2 cents per gallon in profit.
What is rack price propane?
The rack price includes the cost of the gas itself, as well as transportation, overhead, and profit costs. The price can vary from terminal to terminal and depends on the cost of crude oil and related refining costs.
What is the profit margin on gasoline?
The gross margin (or markup) on gasoline in 2018 was 23.8 cents per gallon, or 8.7% of the average price of $2.72 for the year. Over the past five years, retailer gross margins have averaged 21.6 cents per gallon, or 8.5% of the overall price.
Why is gas so cheap at Costco?
How does Costco keep its gas price so low? The answer is simple: they just have very loyal customers. To purchase their gas, you have to be a member, and membership sales make up about 75 percent of the chain’s profit.
What do gas stations make the most money on?
Top Sellers at Gas Station Stores
- Cigarettes (34.4 percent)
- Packaged beverages (13.8 percent)
- Beer (12.2 percent)
- Food service (12.1 percent)
- Other tobacco (3.8 percent)
- Candy (3.7 percent)
- Salty snacks (3.2 percent)
- General merchandise (2 percent)