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Despite skyrocketing gasoline prices during the summer, gas stations and other fuel distributors are not particularly solvent.
Prices have been largely boosted on the supply side as Russian oil – the world’s – has been banned second largest oil producing country behind the United States – has coincided with a rapid rebound in demand from the newly opening economies to create a stranglehold on crude supply around the globe.
Gross margins in the fuel retail industry are average 27 cents a gallon in the last five years. After deducting all other expenses, margins can be as razor thin as retailers actually are sell at a loss in market downturns – like the infamous crash at the beginning of the pandemic in March 2020.
To offset this, many retailers rely on convenience stores or other ancillary sales, such as car washes and basic maintenance services, to top up thin fuel margins. EzFill Holdings Inc. EZFL, on the other hand, reports on solving the margin problem by innovating the entire retail model to bring fuel distribution into the 21st century. For example, the pioneering mobile fuel delivery company outperformed the industry standard by a margin of 49 cents per gallon, even as crude oil prices soared.
EzFill Reports Strong Margin Growth in Second Quarter Earnings Release
In August, EzFill reported second-quarter earnings, which were driven by increased demand for its innovative on-demand fuel delivery service. Total gallons shipped increased to almost 790,000 in the second quarter from about 591,000 in the first quarter.
The company has since added about 40 new fleet customers with an expected demand of about 1.2 million gallons per year.
Overall, second-quarter shipments generated over $3.7 million in revenue at an average margin per gallon cent. That’s a 32% increase from the 37 cents per gallon margin the company reported in the second quarter of last year…
