Diesel Margins Swell, But Volumes Shrink As 2009 Gets Underway

摘要

For many retailers, sales of diesel are no longer an afterthought. Thanks to continued erosion in wholesale diesel prices and relatively static retail numbers, diesel pumps are yielding higher margins than premium gasoline at many sites. That's the good news. The bad news is that truck traffic has plummeted, and neighborhood stations and even small truckstops have lost much of their market share to the national truckstop chains that have no difficulty undercutting smaller marketers and still making a profit. Indications of the dramatic drop in diesel operations came earlier this month when c-store chain The Pantry disclosed that diesel volumes in the quarter ended Dec. 25 were down a staggering 18.3%, thanks to the economic slowdown and reduced truck traffic, the company noted. The Pantry sells diesel at more than 1,000 stores, including about 200 large facilities that get medium and heavy duty truck business.