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The reality is that big oil squeezed these operators as well as they do with consumers. They need to buy the gas anyway, but by contract they can only do that f
by coliveira 5y ago
The reality is that big oil squeezed these operators as well as they do with consumers. They need to buy the gas anyway, but by contract they can only do that from a major supplier. In other words, because they don't have pricing power, big oil took from them almost all profit associated to gas sales.
- SilasX 5y agoEither way, I don't imagine gasoline retail having high margins even under ideal circumstances. It sells very predictably and reliably and requires virtually no overhead anymore due to self-service stations. It's a stream of money on auto-pilot and any non-trivial profits would quickly get eaten away by someone else who sees it as a the automatic stream of money it is.