Hacker News Reader

Comment by kxrm | Hacker News Reader

I think ICE cars will see a retro use period like many nostalgic things, so while I agree the daily driver will change, it's very likely that fuel will be seen as some sort of luxury product. Right now fuel is a loss leader for most gas stations, that dynamic will definitely change as ICE vehicles become a toy or status symbol for upper middle class and wealthy people.

View on HN

Huh, you're saying that gas station sell their main product at a loss and then make back the difference on what… tictacs and slim jims?

Actually yes. I don't recall it being a loss leader, but at the very least, gasoline has a very low margin because the gas price market is highly price-competitive. Store items have a much higher margin (as much is obvious just by looking at sticker prices). The average motorist will not purchase a lot from the store (as seen from your quip about "tictacs and slim jims"), but you also have truck drivers who are much more frequent customers of gas stations.

I don't know how it is in the US, but in France, yes, most gas stations are owned by adjacent stores and they make really little margins (actually, there are frequent sales of gasoline at cost price).

In fact, when buying gasoline in those stations, it's common to receive some voucher for the owner's store.

Other stations are owned by petrol corporations but they are in direct competition when they are near stores or they are very expensive when they are located on our highways, which are privatized(and it's a shame), so they are in some sort of closed market since you cannot leave the highway without paying.

Boutique carrying the finest petroleum and other refined goods:

https://www.youtube.com/watch?v=uqkmaIfWMWQ

(Shot during another wave of rising gas prices)

Reply on news.ycombinator.com