Fluctuating fuel prices and supply chain disruptions are the biggest fuel challenges for convenience-store retailers, according to a survey by Titan Cloud, a fuel software company based in Franklin, Tennessee, and the National Association of Convenience Stores (NACS).
The survey of 134 industry professionals was conducted from June to August. Made up of managers, directors and senior executives, the survey respondents shared perspectives on the future of downstream supply chain. It encompassed small, medium and large chains.
Fuel retailers are grappling with a complex web of challenges that threaten profitability, efficiency and long-term sustainability, the report said.
With 43.5% of respondents ranking fluctuating fuel prices and supply chain disruptions as the top barrier to profitability, retailers can take action by implementing dynamic pricing models and lowering prices while demand is low and raising prices when demand is high. AI-driven forecasting—predicting demand based on changing factors like weather, customer patterns and local events—is another solution. Finally, keeping up to date with real-time supply chain updates can help, the report said.
The next top concern was rising operational costs for 28.8% of respondents, including increased fuel storage costs, transportation expenses, maintenance costs for aging infrastructure and labor costs. These costs are forcing businesses to find innovative ways to reduce expenses without compromising service quality.
Automating routine tasks, optimizing resource allocation, and leveraging predictive analytics can drive significant savings, the report said. For example, automated inventory management ensures fuel is ordered only when needed, reducing waste and lowering storage costs.
Third, 12.3% of respondents selected maintaining efficient fuel assets as a top challenge. This includes storage tanks, pipelines and dispensing equipment.
As a solution, predictive and proactive maintenance tools can extend asset lifespan, reduce repair costs and ensure compliance. Automation also minimizes human error, freeing up resources.
The final three challenges were optimizing logistic and fuel procurement, 8.3%, the customer fueling experience, 5.3%, and finding and retaining qualified staff, 3%.
TitanCloud recommends managing transportation efficiently, investing in customer experience and implementing automation for employees.
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