The OPIS report (click here) is based on more than 110,000 gas stations, supermarkets and big-box stores that sell gasoline, as well as wholesale costs for nearly 2,000 petroleum terminals in the United States.
Nationwide gross gasoline margins averaged 16.9 cents per gallon in the first half of 2010, compared with just 10.3 cents per gallon last year and as little as 9.6 cents per gallon in 2002, one of the notoriously poor years for convenience store returns, the report said/
There are some clear standouts among the 150 or more companies that fly major or private U.S. brands. OPIS measured Sunoco's average year-to-date gross margin on unleaded regular gas at 18.7 cents per callon, up more than 6 cents per gallon from the same period last year. Fast-growing Southeast retailer The Pantry saw gross margins nearly double from 2009, with April, May and June returns particularly robust. And within diversified companies such as Valero, Tesoro, Murphy and Marathon, the performance of the retail segment will almost certainly outperform refining and wholesaling.
The strong returns could energize already busy buy/sell action across the country, said OPIS. Multinational oil companies such as BP, Chevron, ConocoPhillips, ExxonMobil and Shell continue to divest large portions of company-owned or operated retail real estate. Active buyers include public chains such as The Pantry, Sunoco, Susser Holdings, Global Partners and a host of entrepreneurial companies backed by public and private equity.
Meanwhile, on center stage, the strong performance raises the stakes in a stormy battle in the heartland where the nearly 1,500 c-store holdings of Casey's General Stores are the target of a hostile takeover by North American consolidator Alimentation Couche-Tard. Casey's gross fuel margins for the first half of 2010 are running about 5.8 cents per gallon, or nearly 62% above last year, according to OPIS data.
Even the big-box chains such as BJ's, Costco and Sam's Club were able to sell gasoline not as a "loss leader" but as a profit center of its own. The wholesale clubs continue to sell fuel at aggressive prices, but these high-volume retailers sold gasoline at 6 to 9 cents per gallon above cost in 2010, compared to sometimes negative gross margins in 2009.
Click the Download Now button below to view the chart "Rack-to-Retail Margins First-Half 2010 vs. First-Half 2009."
OPIS retail fuel analyst Fred Rozell noted that the "brisk" 2010 start should be viewed with caution. "Six of the last eight years have actually seen better second-half fuel margins than in the first two quarters," he said, "so this year's performance could simply be 'front end loaded'."
OPIS is a leading source for petroleum pricing information. It receives more than 70,000 daily rack and spot prices for gasoline, diesel, ethanol, biodiesel, LP-gas, jet fuel, propane, feedstocks, resid and kerosene. OPIS spot gasoline, diesel and jet fuel prices are heavily indexed as key benchmarks in national supply markets. OPIS also receives daily retail gasoline and diesel prices for more than 125,000 retail outlets in the United States and Canada.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.