NEWS FROM THE US
NEWS FROM THE UNITED STATES
BY KRISTEN WRIGHT
EDITOR IN CHIEF, PEI
Kristen Wright is editor in chief of the PEI Journal. Reach her at
firstname.lastname@example.org. The Petroleum Equipment Institute is a trade
association whose more than 1,600 member companies in 80-
plus countries manufacture, distribute and service petroleum
marketing and liquid handling equipment.
California pulls bill that would have
banned combustion engine vehicles in the
state. The Environmental Protection Agency
provides online access to data on states
and territories with amended underground
storage tank regulations. Automakers push
for the same 95 octane gasoline standard
as Europe’s “regular.” And NACS releases
its 2017 state of the industry data. These are
petroleum industry stories from the
California Assemblyman tables prop to
ban combustion engines
A California Assemblyman in mid-April tabled
his proposal that would have required
all new passenger vehicles registered in the
state after Jan.1, 2040, to emit zero emissions.
Democrat Phil Ting of San Francisco
has since pulled his AB 1745, the Clean
Cars 2040 Act.
In early April, members of the California
Independent Oil Marketers Association) met
with state legislators to discuss concerns
within the fuels and c-store industries.
The association, which represents nearly
90 percent of all independent petroleum
marketers in the state and one-quarter of the
state’s 10,000 service stations, sent more
than 400 letters opposing Ting’s bill to California
Despite pulling the bill, Ting said California
will achieve the goal regardless. He
lauded commitments from Norway, India,
China, France and the UK to transition from
combustion engines to electric vehicles.
UST regulation by state
Data on the states and territories that
have amended their underground storage
tank (UST) regulations to comply with the
2015 federal UST requirements is available
on the U.S. Environmental Protection Agency
(EPA) website, https://www.epa.gov/ust/
In addition, the site includes major compliance
dates for each state. The EPA Office
of Underground Storage Tanks expects to
add several states by the end of April. An
agency official said the pace of updates will
accelerate, too, as the October 2018 federal
Automakers push for 95 octane standard
U.S. automakers want to replace 87 octane
regular with 95 RON gasoline, which is
Europe’s “regular” and the lowest premium
grade in the United States.
In mid-April, the vice president of global
propulsion systems at General Motors Co.
testified before the U.S. House Energy and
Commerce Committee’s environment subcommittee.
He said that making the shift to
95 RON would be a viable, economical way
to boost fuel economy and reduce greenhouse
Joining GM in the push for 95 octane as
the single U.S. fuel grade are Fiat Chrysler
Automobiles, Ford Motor Co. and the U.S.
Council for Automotive Research.
The goal, supporters say, is to achieve 3
percent fuel economy improvement for less
than 3 percent cost.
NACS: US c-stores post $10bn profit
For the fourth consecutive year, U.S.
convenience stores posted more than $10
billion in pre-tax profit, according to NACS
State of the Industry data.
The year also was the 15th straight for record
in-store sales. Overall sales rocketed
9.3 percent to $601.1 billion, thanks to fuel
sales that were up 14.9 percent. That’s $1 of
every $30.9 spent in the U.S., or 3.2 percent
of the entire U.S. gross domestic product.
Both higher gas prices and more gas
sold contributed to the fuel sales spike. Fuel
gross profits in 2017 went up 11.7 percent
per store. The c-store and fuel retailing industry
employed some 2.48 million people.
NACS STATE OF THE INDUSTRY REPORT ® | 2017 DATA
Record Year for
U.S. convenience stores experienced record in-store sales
in 2017, per newly released NACS State of the Industry data.
$601.1 BILLION TOTAL SALES
SALES $364.1 B FUEL SALES
ONE OF EVERY 30.9
DOLLARS spent in the
country was spent
at a convenience
U.S. Convenience Stores Snapshot
Convenience stores sell about 80% of
the fuel purchased in the United States
SALES IN 2017 $364.1 BILLION
AVERAGE HOURLY WAGE FOR A STORE ASSOCIATE
WAGES IN 2017 $10.19
0 $2 $4 $6 $8 $10 $11
DIRECT STORE OPERATING EXPENSES
reported a 14.9%
increase in fuel
sales in 2017.
for store associates was 115%
down from 133% in 2016.
Source: NACS Compensation Report® of 2017 Data
2015 2016 2017
Comparing inside GP$ and DSOE
Fourth consecutive year of $10 billion+ in pre-tax profit
PRE-TAX PROFIT IN 2017 $10.4 Billion
0 $2 $4 $6 $8 $10 $12
Pre-tax Profits in Billions
Direct store operating expenses
(DSOE) have outpaced inside
gross profit dollars for the 2nd
(salty, candy, packaged
Top 10 in-store
categories comprise 80%
of all in-store sales
20.1% GP$ Other tobacco products
18 erpecnews is published by McLean Events, Conferences and Media Ltd.
Convenience and fuel retailing industry
employed 2.48 million people in 2017
Labor > Healthcare, Wages, Payroll Taxes
In 2017, all of the top 10 in-store categories saw positive sales.
cold, frozen dispensed
(carbonated soft drinks,
water, juices, teas;
energy and sports drinks)
22.5% of in-store sales
and accounted for
33.9% of GP$
(OTP) acheived doubledigit
growth in sales and
9.2% in GP$.
You Have Questions.
We Have Data-Powered Answers.
to 154,958 stores
go to a convenience store every day
Sources: NACS State of the Industry Report® of 2017 Data; 2018 NACS/Nielsen Convenience Industry Store Count
store in 2017.
$50 $100 $150 $200 $250 $300 $350 $400
AVERAGE GAS PRICES
$0.50 $1.00 $1.50 $2.00 $2.50
cents per gallon (before expenses)
¢ 2017: 22.02
Healthy Snacking Trend
For the 3rd consecutive year, alternative
snacks, a category driven by proteinand
energy-rich items, reached the
top 10 in-store merchandise