Gas Station Owners Face Ruin as Iran War Squeezes Margins

Gas station owners across the United States face severe financial strain as wholesale fuel prices surge following the start of a war in Iran in late February. The National Association for Convenience Stores reports the average gap between wholesale and retail prices has fallen to approximately 22 cents per gallon, well below the five-year average of 38.3 cents.

Operators in multiple states report thin margins being further eroded by increased credit card fees, delivery charges, and labor costs. In New Jersey, Harry Singh is considering ceasing fuel sales entirely to focus on car repairs. In California, Chris Bambury manages multiple Sonoma Valley locations while struggling with wholesale price hikes. In Minneapolis, Lonnie McQuirter is managing cash flow difficulties caused by sudden wholesale cost jumps.

The margin compression leaves many owners barely breaking even or losing money on fuel sales, with some operators weighing whether to exit the fuel business altogether rather than absorb mounting losses.