As gas prices fall, gas stations’ profits actually rise
By Paul Davidson, USA TODAY
Feeling sorry for gas stations as prices plummet? Don’t.
Although retail gasoline prices have fallen 55% since mid-July, wholesale prices have plunged even more sharply — 68%, according to the Oil Price Information Service. As a result, retailers have enjoyed record profit margins since mid-September.
“Guess what? They’re making substantially more money at $1.89 (a gallon) than they were at $4.29,” says OPIS chief oil analyst Tom Kloza.