Since the economy has recovered and Corona isn’t as prevalent anymore since the vaccines came out, society now feels safer going out and traveling around the world. However, gas production has been lagging, causing gas prices to rise, making it harder for people to travel. Gas prices have been increasing due to the global gas market and have been hurting gas station owners as well. Families are impacted from the higher gas prices and are traveling less than ever before, not surprisingly, soaring gas prices are having a very real impact on household budgets… One in three adults say they reduced their car usage last month, with most blaming gas-pump sticker shock, according to Morning Consult.
With the high gas prices having a significant impact on families, many are struggling to travel. When traveling, many families try to stay within budget but now have to take out money from other planned activities, hotel stay, or dining. Many people will use other forms of transportation, such as going on public transit or flying to the destination instead, which could affect gas station owners’ revenue.
There are different paying methods when it comes to paying for gas. Most gas stations have signs for cash and credit card prices showing consumers the difference between spending one or the other. Usually, paying with a credit card is more expensive but convenient for consumers. Yet, consumers may not realize that paying cash is the best way to pay for gas. According to Forbes, the more expensive credit price reflects gas station owners trying to cover the cost of what the banks and credit card companies charge them each time a customer uses their card to pay for gas. Not only that, the amount banks and credit card companies charge merchants goes up when the price per gallon goes up, according to data from the PMA.
There is no win-win situation for either consumers or gas station owners when it comes to paying for gas. When a consumer pays for gas using their credit card, gas station owners need to cover the cost of what banks are charging them which is eating at their profits. Not only this but most major oil companies have backed out of the retail business because selling gas generally isn’t very profitable. Gas stations make an average net margin of just 1.4% on their fuel. That’s far lower than the 7.7% average across all industries — and ranks beneath other notoriously low margin businesses like grocery stores (2.5%) and car dealerships (3.2%).
This can also mean there wouldn’t be enough gas stations for people to refuel the tanks in their cars. Since the net margin is low for gas stations, they get very little profit from customers and eat all the surcharge fees from the credit card companies.When paying with cash, merchants find they only make a profit when consumers end up coming inside the convenience store to get a snack for the road. Even so, paying with cash can save a consumer a significant amount of money in the long run and avoid the surcharge. Overall, payment with cash can be a good situation for both parties because merchants will get more profit while consumers save more money on gas.
For a busy gas station owner, leveraging a point of sale system, such as the NRS Petro POS, can be time and money-saving – and revenue generating. The powerful, pump-integrated POS with seamless NRS Pay credit card payment acceptance, is a perfect fit with NRS Pay’s FeeBU$TER plan. In the gas station c-store, a merchant can pass along the processing transaction fee to the customer as a “service fee” each time a customer pays with a credit card. When the customer pays with cash, the service fee is waived. This can add up to thousands of dollars saved for the retailer over a period of time.
With the advent of inflation there is a higher probability of fraudulent activity in the absence of safeguarding with EMV devices. Gas station owners with petro c-stores are turning to leading POS providers, National Retail Solutions Petro, in the independent retail space who offer the easiest and most cost effective pump integration solutions.
Luckily, there are ways to help consumers save money on gas prices. Consumers should keep in mind about changing their driving habits, such as how often they need to drive and if a fuel efficient car can be the answer to saving more on mileage. They should also remember to stay on top of the current events regarding gas prices. That way, consumers can always know how much gas is and where the cheapest gas may be located. Lastly, make sure never to go too fast when driving since it wastes more gas. If you are going the speed limit, you will be saving more gas and, of course, driving safely. Now that you know what to look out for and how to save money at a gas station- you are off to a great start.