High Gas Prices Affect Station Owners, Too

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Idaho fares relatively well as gas prices rise, but higher prices still take their toll on station owners.

Idaho is faring somewhat better than many other states in terms of gas prices, as Boise State Public Radio recently reported.  According to AAA’s Daily Fuel Gauge Report, a gallon of regular will now run you about $3.78 in Idaho, well below the current national average of $3.94.

For Idaho’s gas station owners, that’s cold comfort.

The Wall Street Journal today points out that rising gas prices are taking a toll on independent station owners.  “Until the past five years or so, many gas stations were, in fact, owned by the big energy companies,” the article says.  “But most have since sold off their portfolio of stations to focus on more profitable areas, such as wholesale fuel sales.”

Now, high credit card processing fees and falling convenience store sales are cutting into owners’ profit margins.

It’s a problem that’s especially evident in Idaho, according to Suzanne Budge of the Idaho Petroleum Marketers & Convenience Store Association.  “Of course, all stations in Idaho are independently owned,” she says.  “We don’t have any that I know of that are company-owned.  It’s not Exxon, it’s not Chevron that’s living or dying with the bottom line.”

Budge says gas stations make their money on things like coffee and candy bars, and high gas prices have a direct effect on those sales.  “Everything that impacts how much foot traffic they get impacts how much people spend in stores,” she says.  “And the higher the price of gas goes, people are spending less money on other stuff.”

That puts Idaho’s independent owners in a sorry bind.  “Not only do they get blamed for high prices,” Budge says.  “When prices are going up, it’s much harder to make any money.”