National Petroleum News (NPN) has been the independent voice of the petroleum industry since 1909 as the opposition to Rockefeller’s Standard Oil. So, motor fuels marketing and retail is not just a sideline for us, it’s our core competency.
Issue link: https://read.dmtmag.com/i/61437
TOP OF THE NEWS EPA to allow 15 percent renewable fuel in gasoline Agency approves first applications for registration of ethanol to make E15 for use in making gasoline that contains up to 15 percent ethanol –E15. For over 30 years ethanol has been blended into gasoline, but the law limited it to 10 percent by volume for use in gasoline-fueled vehicles. Registration of ethanol to make E15 is a significant step toward its production, sale, and use in model year 2001 and newer gasoline-fueled cars and light trucks. To enable widespread use of E15, the Obama administra- T tion has set a goal to help fueling station owners install 10,000 blender pumps over the next five years. In addition, both through the Recovery Act and the 2008 Farm Bill, the U.S. Department of Energy and U.S. Department of Agriculture have provided grants, loans and loan guarantees to spur American ingenuity on the next generation of biofuels. The agency noted that the action: "…follows an extensive technical review required by law. Registration is a prerequisite to introducing E15 into the marketplace. Before it can be sold, manufacturers must first take additional measures to help ensure retail stations and other gasoline distributors under- n NACS: Convenience-store sales topped $680 billion in 2011 Convenience store sales, both at the pump and inside the store, set new records in 2011, according to data released on April 4 by NACS – the National Association of Convenience Stores. In-store convenience store sales grew 2.4 %, reaching a record $195.0 billion. Combined with $486.9 billion in motor fuels sales, total convenience store sales in 2011 were $681.9 bil- lion, or one out of every 22 dollars of the overall $15.04 trillion U.S. gross domestic product. The industry's 2011 numbers were announced in Chicago at the NACS State of the Industry Summit, a two-day conference that reviews and analyzes the industry's key eco- nomic indicators. 6 MAY/JUNE 2012 he U.S. Environmental Protection Agency approved the first applications for registration of ethanol stand and implement labeling rules and other E15-related requirements. EPA is not requiring the use or sale of E15." E15 is not permitted for use in motor vehicles built prior to 2001 model year and in off-road vehicles and equipment such as boats and lawn and garden equipment. Gas pumps dispensing E15 will be clearly labeled so consumers can make the right choice. Concerns over issues like liability for customer mis-fuel- ing have been well covered throughout the industry and the national industry associations have been working to insure the industry receives legislative protection under these requirements. As the National Association of Convenience Stores stated in a release: NACS believes that with the progress being made in the market, enactment of the Domestic Fuels Act, introduced last week in both the U.S. House of Representatives (H.R. 4345) and U.S. Senate (S. 2264), is timelier than ever. Retailers need regulatory and legal certainty to make business decisions con- cerning the fuels they offer to their customers. The Domestic Fuels Act will provide that certainty and provide retailers with a legal path forward. In-store sales growth was driv- en by strong sales gains in sever- al beverage categories. Alternative beverages (a category that includes energy and relaxation drinks) saw a 15.3% increase, sports drinks were up 13.9% and cold dispensed bev- erage sales were up 12.3%. Several beer subcategories also saw strong growth: super premium beer sales increased 10.6% and craft beer sales were up 13.9%. Convenience stores continued to evolve their foodservice programs with more meal offers and healthy food options. Prepared food sales increased 13.0% and emerging snacking sub- categories also grew. The nuts/seeds subcategory saw 5.0% growth, leading salty snack sales. Meanwhile, fuels price volatility continues to play a huge role in motor fuels sales data. While motor fuels rev- enues jumped 27.1%, gallons sold per store declined 0.4% compared to 2010. Motor fuels gross margins increased from 15.8 cents to 18.4 cents per gal- lon before expenses, but dipped on a percentage basis, falling from 5.64% to 5.23%. Part of the industry's sales growth also can be attributed to an increase in store count. The number of U.S. con- venience stores grew 1.2% over the past year to a record 148,341 stores, accord- ing to the NACS/Nielsen Convenience Industry Store Count, released in January 2012. Convenience stores now account for 34.6% of all retail outlets, according to Nielsen. Beyond sales, convenience stores remained an important part of the economy. They employed 1.88 million people and generated $162 billion in NPN Magazine n www.npnweb.com