Gas Station Industry Celebrates Centennial
NACS underscores 100 years of change in pumping gasoline
Published in CSP Daily News
ALEXANDRIA, Va. -- With as many as 200 million drivers expected to fill up over the long Thanksgiving Day weekend, a significant anniversary affecting them will quietly go unnoticed on Sunday: the 100th anniversary of the modern gas station, noted NACS this week.
While fueling stations existed before 1913--after all, Karl Benz is credited with inventing the first gasoline-powered automobile in 1885--fueling was far from convenient a century ago. Early fueling sites were a patchwork collection of pharmacies or even ramshackle sheds and blacksmiths’ shops where fuel was usually dispensed from a container, as opposed to being directly pumped into a vehicle’s tank.
That all changed 100 years ago when Gulf Refining Co. opened the nation’s first drive-up service station in Pittsburgh, Pa., designed and built specifically to sell fuel. On Dec. 1, 1913, the station opened and sold 30 gallons of gasoline--less than 1% of the daily sales volume of a fueling station today.
Customers at that first station would not recognize today’s fueling outlets. Gasoline retailing has evolved from full-service attendants with crisp, white uniforms to modern, state-of-the-art convenience stores offering self-service gasoline (except for New Jersey and Oregon, where self-serve is prohibited). In addition, today’s gas stations sell far more than auto-related products such as motor oils, lubricants and batteries, and are known as much for their in-store snacks, drinks and food as for their fueling.
And of course gas prices have changed. Despite the higher posted prices of today, gasoline is a relative bargain. Back on Dec. 1, 1913, gas cost 27 cents a gallon, which equates to $6.39 per gallon in today’s dollars.
Convenience stores, which today sell more than 80% of the gasoline purchased in the country, began entering the gasoline retailing business in the 1960s when a combination of new technologies and the lifting of state self-serve bans allowed stores to reduce labor costs and pass on savings to customers.
“That first gas station did much more than define fueling for the next century; it redefined retail and ushered in the era of convenience,” said Jeff Lenard, vice president of strategic industry initiatives for the National Association of Convenience Stores (NACS). “The emphasis was squarely on service and speed of that service, concepts that are even more important today.”
When Gulf opened that original service station in 1913, there were approximately 500,000 vehicles navigating almost exclusively dirt or gravel roads. Today, there are more than 250 million vehicles traveling on the nation’s 3.98 million miles of paved roadways.
Here are a few statistics regarding today’s fueling industry:
- There are 152,995 retail fueling sites in the United States. This is a steep and steady decline since 1994, when the station count topped 202,800 sites. This count includes 123,289 convenience stores selling fuel, plus grocery stores, truck stops, traditional gas stations and low-volume fueling locations like marinas. (Source: NACS/Nielsen Convenience Industry Store Count)
- The average convenience store sells roughly 128,000 gallons of motor fuels per month, or approximately 4,000 gallons per day. (Source: NACS State of the Industry 2012 data)
- U.S. gasoline demand is an estimated 8.7 million barrels per day in 2013, or about 40 million fill-ups per day. (Source: U.S. Energy Information Administration, Short-Term Energy Outlook)
- Americans travelled 8.04 billion miles per day in 2012. (Source: U.S. Energy Information Administration, Short-Term Energy Outlook)
- While about half of the convenience stores selling gasoline are “branded” outlets that sell a specific refiner’s brand of fuel, less than 0.4% are owned by the major oil companies. Chevron Corp. (406 stores), Shell Oil Products US (23 stores), and ConocoPhillips Inc. (1 store) still own and operate retail locations; ExxonMobil Corp. and BP North America do not own any locations. (Source: Nielsen data)
- Small light-duty vehicles consume an average of 453 gallons of fuel per year, which equates to 1.24 gallons per day or 8.7 gallons per week. (Source: Federal Highway Administration, Highway Statistics)
- The retail gross margin (or markup) on gasoline in 2012 was 18.4 cents/gallon, or 5.1% of the price of gas. Over the past five years, gross margins averaged 16.9 cents per gallon. (Source: Oil Price Information Service)
- Nearly three quarters (72%) of all transactions at the pump are by plastic--either debit or credit card. (Source: NACS State of the Industry 2012 data)
- Gasoline taxes averaged 49.5 cents per gallon in October 2013; diesel fuel taxes averaged 54.8 cents per gallon in October 2013. (Source: American Petroleum Institute)