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Petrol prices and profits ....

By jardinier ·
In a recent discussion, I commented that the cashier at a particular service station justified the inflated prices of drinks, snacks and groceries on the basis that little profit was made on the driveway.

Yesterday I raised this subject with the wife of the owner of another service station. Yes, this was so she assured me. While the motorist is paying more than $AU one dollar per litre, the service station makes only half a cent per litre.

I would be interested to learn if this is also the case in other countries. Do the service stations subsist on inflated prices for non-petroleum products, while making a negligible margin on gas?

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Same story here ...

by jardinier In reply to Gross Margin

"Back before the oil crisis of the mid 1970's, when service stations were "true" service stations, the primary business income and profit came from repairing cars."

I told the wife of the owner of the service station, the responses to this discussion. She said her husband had owned service stations for 20 years, and agreed that petrol had always been only an excuse to attract customers to spend money on other services. In earlier times that was, as you say, mechanical work.

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