{"id":1801798,"date":"2023-01-11T07:21:20","date_gmt":"2023-01-11T12:21:20","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1801798"},"modified":"2023-01-11T07:24:11","modified_gmt":"2023-01-11T12:24:11","slug":"gas-stations-yielded-record-gross-margins-in-2022","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/gas-stations-yielded-record-gross-margins-in-2022\/","title":{"rendered":"Gas Stations Yielded Record Gross Margins in 2022"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fgas-stations-yielded-record-gross-margins-in-2022%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1801798&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<p>The 2022 year was a record year for gasoline retailers, with $59.2 billion in national sales, exceeding the previous record by nearly $15 billion. Study by <a href=\"https:\/\/www.lundbergsurvey.com\/\">Lundberg Survey<\/a>, which provides statistical reports to the oil industry, found that retail margins surged in July and onward, following President Joe Biden\u2019s drawdown of the Strategic Petroleum Reserve (SPR).<\/p>\n<p>Many big gasoline companies have found a year of volatility in oil prices to be a boon.<\/p>\n<p>In the ten years ended in 2019, the average retail gas provider made $0.171 per gallon. This was compared to $0.101 in the ten years prior. Due to sanctions against Russia increasing oil prices and reducing retailers&#8217; margins, the margins for 2022&#8217;s first half fell to $0.135 per gal.<\/p>\n<p>This trend reversed dramatically halfway through the year.<\/p>\n<p>According to the Lundberg report, margins rose an \u201chistoric run to the upside enabled by falling wholesale prices.\u201d In July, gasoline retailers made $0.798 per gallon and averaged $0.431 per gallon throughout the year. This was a significant increase over previous decades.<\/p>\n<p>However, gross margins do not always equate with profit. According to the report, gasoline margins refers to gross margins that retailers must use to pay a lot of overhead costs.<\/p>\n<p>\u201cIt is only after covering all of these costs that a retailer may or may not achieve a profit,\u201d the report noted, adding that\u00a0many crucial business costs, including labor, have been rising in recent years.<\/p>\n<p>Biden will be celebrating April <a href=\"https:\/\/www.whitehouse.gov\/briefing-room\/statements-releases\/2022\/03\/31\/fact-sheet-president-bidens-plan-to-respond-to-putins-price-hike-at-the-pump\/\">Begin<\/a> To offset rising energy costs, he has a six-month plan to put SPR oil on sale in the open market. <a href=\"https:\/\/www.theepochtimes.com\/mkt_app\/bidens-drawdowns-from-strategic-oil-reserve-are-illegal-cause-irreversible-damage-oil-investor-and-attorney_4817785.html\" target=\"_blank\" rel=\"noopener\">Release<\/a> By year-end, 180 million barrels Wholesale prices\u2014the prices paid by retail distributors like <a href=\"https:\/\/www.theepochtimes.com\/t-gas-stations\">Gas stations<\/a>\u2014fell significantly during the second half of 2022.<\/p>\n<figure id=\"attachment_4974912\" class=\"wp-caption alignnone\"><a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2023\/01\/10\/YCharts-oil-price-1200x761.png\"><img loading=\"lazy\" decoding=\"async\" class=\"lazy wp-image-4974912 size-full\" src=\"https:\/\/www.theepochtimes.com\/assets\/themes\/eet\/images\/white.png\" data-src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/YCharts-oil-price.png\" alt=\"Epoch Times Photo\" width=\"1300\" height=\"824\"   style=\"display:none\"><figcaption class=\"wp-caption-text\"><noscript><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-4974912 size-full\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2023\/01\/YCharts-oil-price.png\" alt=\"Epoch Times Photo\" width=\"1300\" height=\"824\" \/><\/noscript><\/figcaption><\/a> WTI crude oils spot price over one year (YCharts).<\/figure>\n<p>After peaking at a little over $5 per gallon\u2014an all-time high for the United States\u2014the national average retail gas price has <a href=\"https:\/\/gasprices.aaa.com\/\" target=\"_blank\" rel=\"noopener\">fallen<\/a> At the time of writing, it was $3.30<\/p>\n<p>Contrary to popular belief rising oil prices are often a problem for gas stations because they cannot pass on the costs to their customers. Falling oil prices can have the opposite effect.<\/p>\n<p>Lundberg summarised the dynamic in the report as follows: \u201cThe irony that is true most years was exaggerated in 2022: When motorists (and politicians) are most angry with purported retailer profiteering is actually when dealers are seeing margins squeezed. Motorists and dealers are both feeling pain. Then, when pump prices begin to fall and gasoline is out of the news, that\u2019s when retailers see margins rise.\u201d<\/p>\n<p>However, gas retailers might not be able to enjoy such high margins for very long. Economists predict a rapid rebound in oil prices, which could cause wholesale gas prices surge.<\/p>\n<p>Although oil prices have declined since the summer 2022, they remain high. At the time of writing,\u00a0Brent crude was priced around $79 a barrel.<\/p>\n<p>The June 2022 price of oil reached $114, according to economist Peter Schiff. Schiff blamed the high oil prices on environmental, socio, and governance policies. However, he warned that the proposed ESG policies could lead to a collapse in the economy. \u201cwindfall profits\u201d Taxes will only increase the problem.<\/p>\n<p>Sen. Elizabeth Warren (D-Mass.) Sen. Elizabeth Warren (D.Mass.) was co-sponsor of the Big Oil Windfall Profits Tax Act\u00a0<a href=\"https:\/\/www.congress.gov\/bill\/117th-congress\/senate-bill\/3802\/text\">Bill<\/a>\u00a0last March, which would tax excess earnings at 50 percent\u2014\u201cexcess\u201d That is, oil barrels that are sold above a certain price threshold as defined by the bill.<\/p>\n<p>\u201cIf oil prices are high because we don\u2019t have enough oil, the last companies you want to tax are the oil companies,\u201d Schiff <a href=\"https:\/\/schiffgold.com\/peters-podcast\/peter-schiff-government-solutions-for-high-gas-prices-will-just-make-things-worse\/\"><\/a> In an episode of his podcast from March. \u201cBecause if we\u2019re going to get more oil, where is it going to come from? It\u2019s going to come from the oil companies.\u201d<\/p>\n<p>Lundberg&#8217;s report pointed out that retail dealer margins are being affected by rising labor costs and credit card processing fees.<\/p>\n<p>\u201cA repeat performance in 2023 is unlikely,\u201d The report was concluded. \u201cWe expect margins to dip in 2023, but remain robust and above $0.30 per gallon on average.\u201d<\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-liam-cosgrove\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/11\/LiamCosgrove_WEB.jpg\" alt=\"Liam Cosgrove\" \/><\/a>\n\t\t\t\t\t<\/div>\n<p>Liam Cosgrove is a freelance journalist who covers finance, markets and business. He received his bachelor&#8217;s degree in mathematics from the University of California\u2013Santa Barbara.<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The 2022 year was a record year for gasoline retailers, with $59.2 billion in national sales, exceeding the previous record by nearly $15 billion. Study by Lundberg Survey, which provides statistical reports to the oil industry, found that retail margins surged in July and onward, following President Joe Biden\u2019s drawdown of the Strategic Petroleum Reserve &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1801801,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[3990,5458,7536,10753,14356,4752,3819,4389,14355],"class_list":["post-1801798","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-3990","tag-bongino","tag-gas","tag-gross","tag-margins","tag-record","tag-report","tag-stations","tag-yielded"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1801798","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1801798"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1801798\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1801801"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1801798"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1801798"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1801798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}