Gas station owners are having just as hard a time at the pump as the rest of us.
As gas prices increase every day, many drivers are saying they find it hard to believe that those who own gas stations in the Capital District aren’t seeing profits higher than ever, but local station owners say that just isn’t true.
Even though oil companies are seeing record profits because of the rates for oil, owners of stations across New York have seen no such profits, as they make an average of 10 cents per gallon sold at the pump.
My life’s works in jeopardy, said Mac Brownsen, who owns a number of Capital District gas stations and is president of the New York Association of Service Stations and Repair Shops, Inc. `I have to make $10 million in sales to make $100,000.`
The service station industry has been crippled by the high cost of gasoline in recent months, with a half-dozen gas stations going out of business in the Capital District alone, according to Brownsen. Along with rising fuel costs, service station owners also have to deal with credit card surcharges that are a part of their contracts with oil providers and other credit dealers. Brownsen said he has to pay hundreds of thousands of dollars in credit card fees because of his contract with Exxon/Mobil.
Private gas stations owners are not the only ones being hit by the increase in gas prices, Stewart’s Shops with gas pumps have also felt the pinch.
Tom Mailey, marketing manager for Stewarts Shops, points to an unstable economy as the reason for the difficulty station owners face when trying to turn a profit at the pump.
`Due to market volatility, this will vary greatly, and at times we do lose money. At the end of the year we will make less than 5 percent gross profit.
That’s before our expenses are factored in,` said Mailey in a written statement. `Most of our shops are not tied to one brand of gas. This allows us to purchase quality gasoline from a number of different suppliers at the best price possible. Unfortunately, no matter where the gasoline is purchased from, it comes from ‘big oil.’ Not to mention that most of the United States crude oil supply for refining comes from foreign sources.`
`The profit is dwarfed by the amount of work every day,` said Brownsen.
`Gasoline is a shrinking profit item. If I make 1percent in gross sales for myself, I’ll be first shocked and then ecstatic; it’s never going to happen.`
According to Brownsen, a `load` of gasoline, which is about 12,000 gallons, goes for $50,000, with service station owners only make 10 cents per gallon.
The result is that they are handling more money now than ever without making any more in profits.
Brownsen said if gas prices get anywhere near $7, his stations would face the danger of declining daily business.
`A lot of smaller service station owners across the country are going to face tougher and tougher challenges,` said Brownsen. `It’s a very complicated business.` “
