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SPRING 2025

In the Lead Mario Spina

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SPRING 2025

COVER STORY

What Drives Consumers’ Purchases? A consumer study looks at purchase decisions at the pump, inside the store and at the showroom.

36 One Oil Tuck to a 42 From Multi-Fuels Terminal

In The Lead: Mario Spina

Pride in operations goes well beyond the forecourt.

How Broco Energy refused to be intimidated by the challenges involved in bringing bio and renewable options to the Northeast.

FuelsMarketNews.com

FMN Magazine SPRING 2025 | 1

04 From the Editor 06 NACS News 08 Transportation Energy Institute 10 Fueled for Thought RETAILER OPERATIONS 12 Building Strong Partnerships

How retail-fueling site operators can get ahead ‘with a little help from their friends.’

16 Be Savvy in 2025

A closer look at some of the top fuel industry trends to watch.

18 Cars as Your Customers

What if you could drive your smartphone?

COMMERCIAL FUELS 20 Make the Right Connection

ISO 15118-20 works to smooth the current stumbling blocks with EV connectors.

FUEL MARKETERS 22 N et and Gross Gallons

A simple look at an often-mysterious industry reality.

24 The Shape of Things to Come?

Breaking down how fuel tanks are evolving beyond the traditional round tanks.

26 Charging Up Dispatching

Manual processes might get the job done, but modern software takes dispatching to the next level.

46 Industry News 48 Remember This?

26 2 | FMN Magazine SPRING 2025

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FROM THE EDITOR

Empower Others to Empower You

ne of the most impressive things about the industry, both on the fuels and convenience side, is its aggressive entrepreneurial spirit. An operator has access to real estate and a customer base and then begins figuring out what more can be done with those resources. From the 1910s to the 1970s, gasoline sales supported automotive service and product sales related to tires, batteries and accessories, otherwise known as “TBA.” This included both product sales and service. Yet even then, there were operators who experimented with concepts such as foodservice or general merchandise sales. Today, with gasoline sales supporting the convenience store concept you still find operators pushing the boundaries into whatever areas they feel will be a win for both them and their customers. Among numerous examples, one that jumps to mind was a gas station in North Carolina that I once saw near the Biltmore Estate whose primary offer was fireworks sales. The subject of our “In the Lead” feature is one of those adventurous entrepreneurs, Mario Spina, the second-generation owner and CEO of Parent Petroleum. For starters, Parent Petroleum is the largest independently owned BP fuels marketer. Beyond that, his Pride convenience stores feature multiple high-quality foodservice concepts and his alcohol sales are similarly top shelf, featuring exotic bourbons and $500 bottles of wine. And then there is a taproom for the brewery the company operates. It

EDITORIAL Keith Reid Editor-in-Chief (847) 630-4760; kreid@fmnweb.com

was great to spend the day at one of his locations and see how everything works together. Of course, this brings up the theme of core competencies. A common business trend is to pare down an operation strictly to the core competencies and then try to execute excellently along those lines. However, Spina shows that you can be adventurous in your operations—as long as you hire the right people and equip them with sufficient knowledge and ownership to manage each of these unique operations. He takes care to oversee them all, of course, and has an excellent management team to keep the balls in the air and move the various operations forward. For my entire time covering the industry I've heard about the importance of hiring good staff and taking care of them in the appropriate ways, at the management level and the store level where there is a cost to the significant turnover found in the industry. And yet, all too often, those sentiments are just words. Putting those words into action opens up a realm of possibility, whether fireworks, an on-site taproom or the next big idea.

Jeff Lenard Vice President of NACS Media & Strategic Communications (703) 518-4272; jlenard@convenience.org Leah Ash Editor/Writer (703) 518-4281; lash@convenience.org CONTRIBUTORS John Eichberger, Ed Kammerer, Paul Lauinger, Pavan Maheshwari, Joe O’Brien, Brian Reynolds, Jesus Rodriguez, Caitie Romano, Roy Strasburger DESIGN MX www.themxgroup.com Cover image: Getty Images

ADVERTISING Ted Asprooth (847) 222-3006; tasprooth@convenience.org

PUBLISHING Ben Nussbaum Publisher (703) 518-4248; bnussbaum@convenience.org Nancy Pappas Marketing Director (703) 518-4290; npappas@convenience.org Logan Dion Digital Ad and Media Trafficker (703) 864-3600; production@convenience.org

EDITORIAL COUNCIL RETAILER/MARKETER MEMBERS Mark Fitz, president, Star Oilco; Derek Gaskins, chief marketing officer, Yesway; Brian Renaud, director of retail fuel pricing and analytics, Sheetz; Scott Minton, director of business development, OnCue Marketing VENDOR/SUPPLIER MEMBERS Regina Balistreri, director of marketing, ADD Systems; Joe O’Brien, vice president of marketing, Source North America Corporation; Kaylie Scoles, marketing director, RDM Industrial Electronics Inc.; Ed Kammerer, director of marketing and global product strategy, OPW Fueling; Michael Munz, marketing manager, Petrosoft Fuels Market News Magazine is published quarterly by the National Association of Convenience Stores (NACS), Alexandria, Virginia, USA.

Keith Reid is the editor-in-chief of Fuels Market News. He can be reached at kreid@fmnweb.com.

Subscription Requests: circulation@fmnweb.com POSTMASTER: Send address changes to Fuels Market News Magazine, 1600 Duke Street, Alexandria, VA, 22314-2792 USA. Contents © 2025 by the National Association of Convenience Stores. Periodicals postage paid at Alexandria, VA, and additional mailing offices.

1600 Duke Street, Alexandria, VA, 22314-2792 PUBLISHED BY

4 | FMN Magazine SPRING 2025

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Timely Fuels Resources Available From NACS

6 | FMN Magazine SPRING 2025

explain how gas is sold and the composition of the retail fuels industry. This resource is updated throughout the year online and can be found at convenience.org/fuels. Feel free to share these insights on social media or other consumer-facing material. Many of these resources are among the most-read links on NACS’ website, led by “Does the President Control Gas Prices?” which has nearly 1 million views. Other popular backgrounders include: • Seasonal Gas Prices Explained • Factors That Affect Gas Prices • Why Gas Prices Vary From Station to Station

• Who Makes Money Selling Gas? • Why Gas Is Priced Using Fractions of a Penny • Why Gas Brands Are Different • When Were Prices Low? • Paying by Plastic at the Pump • What Is Octane? Two other resources go even deeper into fueling: • The History of Fuels Retailing • Key Facts About Fueling If you have comments or questions—or ideas for additional backgrounders, contact NACS Vice President of Media & Strategic Communications Jeff Lenard at jlenard@convenience.org. FuelsMarketNews.com

FRESHSPLASH/GETTY IMAGES

Nearly 40 million Americans fill up their gas tanks on a daily basis, often searching for a good price and convenient location. There is arguably no product that consumers think more about on a daily basis—yet at the same time is so misunderstood. But that’s changing. For more than 20 years, NACS has developed and updated backgrounders within its Fuels Resource Center to demystify how the market works— from the time crude oil is extracted from the ground to when fuel flows into a consumer’s gas tank. The latest information continues NACS’ tradition of providing a factbased analysis of market dynamics to

Attend an Industry Update Luncheon in 2025

Calendar of Events MAY NACS Leadership for Success May 12-16 Hershey, PA NACS Convenience Summit Europe May 27-29 Copenhagen, Denmark OCTOBER

NACS Show

October 14-17 Chicago, IL NOVEMBER

NACS hosts Industry Update Luncheons across the country for NACS leadership to share insights, performance trends and metrics and discuss issues and opportunities that are relevant to the convenience and fuel industry. By attending, you’ll gain insight and knowledge on: • The NACS State of the Industry Report® and CSX data relevant to your region and state • Important legislative and regulatory issues currently facing the industry and how NACS is advocating on your behalf • Timely and relevant topics from within and outside our industry that will have an effect on your business today and in the future Look for a luncheon coming to your region this year.

NACS Innovation Leadership Program at MIT November 02-07 Cambridge, MA NACS Women’s Leadership Program at Yale November 09-14 New Haven, CT

2026 FEBRUARY

NACS Leadership Forum February 10-12 Miami, FL

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MARCH

Upcoming events are currently scheduled in: • Des Moines, Iowa: May 1 • Providence, Rhode Island: May 6 • Salt Lake City, Utah: May 13 • Richmond, Virginia: May 20 For more information, visit convenience.org/events/industry-update-luncheons.

NACS Day on the Hill March 16-18 Washington, D.C. NACS Human Resources Forum March 16-18 Louisville, KY

For a full listing of events and information visit www.convenience.org/events.

FuelsMarketNews.com

FMN Magazine SPRING 2025 | 7

Carbon Quandary: Reducing Emissions Through Fuel Transportation energy solutions will come from all directions. BY JOHN EICHBERGER

n looking at how to address transportation-related issues, too often the focus goes to a single energy source solution, looking for that one breakthrough that will solve all our emissions issues. The reality is this may not exist; instead, we should be looking at a combination of incremental improvements that are compatible with each other. In other words, let’s look beyond just EVs, because there are plenty of successes with traditional fuels. Since 2004, the United States light-duty vehicle fleet has increased its fuel efficiency 45% and reduced its greenhouse gas (GHG) emissions by 34%. This was achieved by a combination of improved vehicle engineering and the introduction of lower-carbon fuel. It will take time for the fleet to turn over to the next generation of increased efficiency vehicles, whether traditional fuels or EVs. But there are opportunities right now to encourage fuel innovation (including liquid, electric and gaseous forms) that can continue to reduce the emissions of the vehicles that are currently on the road. A LIFE-CYCLE APPROACH Greenhouse gas emissions are produced at every step of a vehicle’s life cycle, from production to eventual disposal and recycling. Nearly three-quarters of life-cycle GHG emissions come from the energy used to power vehicles—whether internal combustion engine vehicles or battery electric vehicles. Some improvements can be made in new-to-market vehicles, but for the nearly 300 million vehicles registered in the United States and 1.5 billion in the world, addressing the carbon emissions potential of the energy is the only way to reduce emissions.

8 | FMN Magazine SPRING 2025

As we look at the current fleet, it is most helpful to focus on legacy ICE vehicles, considering EVs currently represent less than 2% of the fleet. So how do we reduce the emissions potential of the existing liquid fuel supply? There are innovative projects and products that can be brought to the market over time, such as e-fuels, renewable gasoline and advanced production practices, and we should continue to work on these and bring them to market because they hold great potential. TEI examined life-cycle emissions by looking at the life cycle of a vehicle—from manufacturer to use to eventual disposal/recycling. A life cycle approach means that we value the reduction of carbon emissions wherever they exist—the oil and corn fields, lithium mines, refineries, electricity generation facilities—as well as at the tailpipe. By doing so, we can compound environmental benefits. Imagine a crude oil that is extracted using renewable energy and methane sequestration rather than flaring and then processed into gasoline at a refinery that also uses renewable energy and sequestration. Then, blend this lower carbon product with 15% ethanol that was produced from corn grown using sustainable agricultural practices in a biorefinery that also uses renewable energy and sequestration. Then, perhaps, we could also add up to 5% renewable gasoline and some e-fuel, both of which are not yet scalable to mass volumetric production and may only be available in small volumes. If these options can effectively be combined to yield the finished gasoline product, how much carbon might we be able to remove from the transportation sector? THE IMPACT OF BIOFUELS Biofuels have enabled lower emissions and enhanced domestic energy security over the past three decades, and their growing embrace presents more opportunities. FuelsMarketNews.com

Since 2011, we have increased our monthly consumption of biofuels in the United States by 65%. This was, of course, supported by the Renewable Fuel Standard (RFS) and the California Low Carbon Fuel Standard (LCFS), as well as the Blenders’ Tax Credit, programs that resulted in a significant increase in renewable fuel use and reduction in carbon emissions. Today, ethanol comprises about 10.5% of the gasoline pool, and biodiesel and renewable diesel comprise around 10% of the diesel pool. The expansion of this market has been incredible, and it has had a positive impact on emissions. Using TEI’s Carbon Avoidance Tracker tool, which applies the carbon reduction variables published by Argonne National Laboratory in its GREET model, we can see how effective biofuels have been in reducing GHG emissions from transportation. On a monthly basis, the use of ethanol, biodiesel and renewable diesel takes an average of about 5% of carbon out of the system. Over the past three years these products have mitigated more than 455 million metric tons of CO2 emissions. According to a calculator provided by the U.S. Environmental Protection Agency (EPA), reducing 115 million metric tons of CO2 per year is equal to taking nearly 35 million vehicles off the road—or operating 44,800 FuelsMarketNews.com

wind turbines for a year. (The United States currently operates approximately 75,000 turbines.) Despite the progress made with leveraging biofuels to expand the fuel supply and reduce emissions, there is more we can do. TEI’s 2024 report “Balancing the Benefits of Biofuels,” demonstrated that we can use more biofuels and develop new sources of feedstock while not disrupting the supply or affordability of food as some have contested. It is possible to pursue environmental progress while protecting our economic interests— these need not be mutually exclusive objectives. The bottom line is that we need to work together to identify solutions to our environmental challenges that preserve access to affordable and reliable transportation energy for consumers, support the specific-use cases for which certain vehicles are deployed and provide economic opportunities for businesses that will encourage investments in such solutions. TEI will continue to evaluate all viable options to provide the market with some insight into what might be possible and feasible. By elevating the conversation, we can help decision makers reach for solutions that improve the transportation market for all stakeholders.

A life-cycle approach means that we value the reduction of carbon emissions wherever they exist— the oil and corn fields, lithium mines, refineries, electricity generation facilities— as well as at the tailpipe.

John Eichberger is the TEI executive director.

FMN Magazine SPRING 2025 | 9

FUELED FOR THOUGHT

Decarbonization Beyond EVs The fueling industry should continue to keep an eye on e-fuels.

-fuels have the potential to contribute to decarbonization without an overhaul of the entire energy distribution system. Made with electricity, carbon dioxide and water, they could reduce lifecycle greenhouse gas (GHG) emissions by 75% compared to fossil gasoline. As drop-in fuels compatible with the current fueling system and new and existing vehicles, e-fuels represent a practical decarbonization solution for fuel site operators. Before e-fuels can be deployed on a large scale, producers will need to overcome several challenges. The Transportation Energy Institute (TEI) assessed the fuels’ economic viability in the United States and its environmental impact 10 | FMN Magazine SPRING 2025

in the report “E-fuels: Evaluating the Viability of Commercially Deploying E-fuels in Road Transport.” Here’s a snapshot of some of the report’s findings. Cost may inhibit adoption. In this early phase of development, e-fuels are expensive to produce, which may prevent them from being FuelsMarketNews.com

FAHRONI/GETTY IMAGES

BY JOE O’BRIEN

economically viable, at least in the short term. TEI estimates that e-gasoline will be 25-30% more costly than fossil gasoline and e-diesel will be 40% more expensive than fossil diesel in 2040. Supply constraints and geographic dependencies will influence e-fuels’ sustainability and scalability. Currently, renewable electricity and heat sources that are needed to produce e-fuels, such as green hydrogen or renewable natural gas, are supply-constrained. The TEI report noted that meeting renewable electricity demands to produce e-fuels could divert that energy source from existing uses. If fossil fuels are used to meet the increased energy demand, GHG emissions would likely increase. Additionally, clean power—energy not derived from fossil fuels or traditional petroleum refining processes—must be sourced from the same region as a hydrogen producer to achieve deliverability. Carbon capture faces similar challenges. The availability of CO2 capture and transport infrastructure affects the amount of CO2 that can be efficiently delivered to plants to produce e-fuels. E-fuels lack policy support. Fuels are globally traded commodities— domestic and international policies influence their supply and demand. At this time, there is no meaningful federal policy support for e-fuels in the United States. There has been no proposal to include e-fuels in the Renewable Fuel Standard (RFS). Without an e-fuel blending mandate, suppliers are unlikely to choose to distribute e-fuels over biofuels. Incentivization is further hampered FuelsMarketNews.com

by limited access to tax credits. In fact, the TEI report indicated that the “current policy landscape could result in e-fuel producers favoring markets outside of the U.S.” While the lack of a structured federal e-fuel policy is not surprising at this early stage, it is something to keep in mind if this energy source is to expand. Low carbon fuel standards (LCFS), such as California’s LCFS, could provide a pathway for guiding decarbonization at the state level. However, because e-fuels appear to have production considerations that may need to be addressed at a regional level, multi-state, coordinated advocacy efforts may be necessary for a successful expansion. SIFTING THROUGH THE COMPLEXITY In just a matter of a few years, e-fuels went from an energy source that nobody had heard of to a fuel that many people are talking about as a potential bridge to decarbonization. Their compatibility with existing infrastructure and vehicle equipment justifies the heightened attention. While the trajectory of e-fuels is uncertain at this early juncture, they are an energy source the fueling industry should keep an eye on. As a non-advocacy group, TEI is a leading source of data regarding the future of transportation energy, and Source North America is proud to be a member of TEI’s board of advisors. Consider following TEI on its social media channels to stay informed about the latest developments with e-fuels and other transportation energy matters that influence profit strategies and operations decisions.

Without an e-fuel blending mandate, suppliers are unlikely to choose to distribute e-fuels over biofuels.

Joe O’Brien is vice president of marketing at Source North America Corporation. He has more than 25 years of experience in the petroleum equipment fuel industry. Contact him at jobrien@sourcena.com or visit sourcena. com to learn more.

FMN Magazine SPRING 2025 | 11

RETAIL OPERATIONS

Building Strong Distributor, Installer and ServiceProvider Partnerships Savvy retail-fueling site operators can get ahead ‘with a little help from their friends.’ BY ED KAMMERER

he Beatles didn’t write “With A Little Help From My Friends” about our industry, but the broader message certainly does apply: We can all use a little help from our friends when it comes to building or remodeling a retail-fueling site. 12 | FMN Magazine SPRING 2025

Most owners and operators would be lost if not for the relationships they have with—and contributions they receive from—their business partners. But how do you go about identifying the best distributors, installers and service providers for your specific

business? Let’s take a closer look how to build out partnerships to keep your business humming. DISTRIBUTORS It is incredibly important for the owners and operators of any retail-fueling business, no matter the location or site demographics, to identify and build a good, trusting relationship with a distributor partner. Distributors who buy products direct from manufacturers, store them and then sell them to retailers when needed are prized because they can streamline and optimize the distribution process. Beyond that, look for distributors that have a ready supply of equipment on hand to meet your needs, as well as a deep understanding of the area as the project is being planned. FuelsMarketNews.com

RETAIL OPERATIONS

These suggestions can help you find the right distributor to optimize the performance of your business. • Perform due diligence: Research the market area in which you will be operating and identify a distributor with a strong reputation who can work through site selection, permitting, equipment selection, installation processes and, eventually, service. • Lean on local knowledge: Distributors who know the area can provide important information regarding population demographics, travel patterns and other important variables. The distributor can also provide background on competitors in the area and what has been successful or unsuccessful for them. • Take advantage of product expertise: Distributors should be intimately familiar with the systems that they represent and sell. This knowledge can help an operator decide, for instance, what types of fueling nozzles to use or which secondary-containment system is the most waterproof. • Manufacturer alignment: Make sure your distributor is partnered with the most innovative manufacturers in the industry and up to date on all the new products the manufacturer has to offer. Work with the distributor to ensure that they keep a sufficient stock or inventory of the fueling components you might need. • Look down the road: You’ll want a distributor who is familiar with the latest revisions, upgrades and enhancements in equipment technology—as well as current and pending regulations. This can include next-generation sump technologies that improve uptime and reduce maintenance costs or fueling nozzles that have been designed to deliver a cleaner fueling experience for drivers. • Plan for an emergency: There is always a chance, especially as systems age, that an equipment breakdown will occur or some form FuelsMarketNews.com

of preventive maintenance will be required. Partner with a distributor who has a vast knowledge of the complete fueling system—and has a staff that is able to respond quickly and reliably to expedite any equipment emergency. INSTALLERS Whether your site is a knockdown-and-rebuild (KDR) or new construction, the first consideration regarding installers is obvious: Find one with a proven reputation of getting the job done properly. The best petroleum equipment installers are those that are true pump-and-tank contractors and not someone that only dabbles in the industry. In other words, you don’t want an installer that is doing guesswork. That can result in a site with leaks in the dispensing or containment systems, which opens the door to a wide array of potentially negative consequences. At the same time, the installer should be certified by the manufacturer and supplier of the systems and equipment that will be installed. It should be up-to-date and in compliance with all required training certificates. Proximity to the building site is also important because some of the equipment may be shipped to the installer, which creates ready access to the stocking depot that should also have replacement parts should anything break or go missing during construction. The second major consideration is the clock. There’s no avoiding the fact, whether the site is a KDR or new construction, that it typically takes from six weeks to six months to get the business operational. Drivers will often find the path of least resistance when searching for a service-station solution, so the longer the site is idled (especially if it’s being remodeled), the more likely a customer will find a new favorite fueling site in the interim. A final consideration is seasonality. Even in the best, most temperate climates, you never know when a

It is incredibly important for the owners and operators of any retail-fueling business, no matter the location or site demographics, to identify and build a good, trusting relationship with a distributor partner.

FMN Magazine SPRING 2025 | 13

RETAIL OPERATIONS

debilitating cold snap or storm will hit. In addition, you’ll want to look at how installers manage operations during the so-called “construction season.”

Ed Kammerer is the senior director, global product management, OPW, based in Cincinnati, Ohio. He can be reached at ed.kammerer@ opwglobal.com.

SERVICE PROVIDERS Fueling-system components begin to experience wear and tear immediately after a site opens. Some installers may also have a service department, which could be a convenient onestop-shop option. A proactive service strategy with preventative-maintenance schedules and regular service checkups is important—don’t wait until a piece of equipment fails to replace it. Regularly scheduled service calls can minimize downtime and help uncover other areas of possible concern. A service tech may notice a

leaking nozzle, presenting the opportunity to test the others to determine if they are operating properly or may be close to failure. The best service providers are also investing in new technologies, such as sophisticated online tools that enable call allocation through GPS. This allows faster response to service calls, which can result in a quicker resolution of the situation with minimal or no downtime. Building a successful retail-fueling business can be daunting—but there are friends who can help you. The retail-fueling industry is home to hundreds of distributors, installers and service providers who have made a firm commitment to guaranteeing the best outcome for retail-fueling site operators, whether they are opening their first site or their 50th.

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DAMN NEAR EVERY DISPENSER IS E15 COMPATIBLE.

SAME GOES FOR DAMN NEAR EVERY CAR AND TRUCK. According to the National Renewable Energy Laboratory (NREL), most fueling equipment in stations today is compatible with E15. So are over 90% of vehicles that come through your station. It’s a fact; consumers buy on price and E15 and Flex Fuels cost less. So what are you waiting for? Charge up your proﬁts by adding E15 and Flex Fuels.

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RETAIL OPERATIONS

Be Savvy in 2025 A closer look at some of the top fuel industry trends to watch. BY PAUL LAUINGER

s we settle into 2025, operators face a pivotal choice: Adapt to rapid change or risk falling behind. From leveraging AI and automation, to developing employees into brand ambassadors, to elevating the 360-degree customer experience, staying ahead means mastering the dynamics to not only foster growth but also redefine the future of fueling. Here’s what we see as the top trends as savvy operators focus on turning challenges into opportunities. 1% WRITE-OFFS ARE OVER There’s no longer an excuse for the standard 1% annual write-off on fuels losses. Retailers can increasingly use automation to pinpoint inventory 16 | FMN Magazine SPRING 2025

variance issues, including the root cause. By using integrated technology to refine and enhance supply logistics, the write-off threshold once considered the usual cost of doing business can be significantly reduced. Data analytics provide faster, more accurate, immediately actionable answers to fuel loss questions, prompting quicker resolution and preemptive planning to avoid future loss. Additionally, the time and money traditionally needed to identify, investigate, address and test inventory variance issues manually—potentially a significant amount, depending on what’s discovered during that cycle—can be greatly minimized or eliminated. As a result, innovative retail fuel operators can reallocate

budget toward business enhancements, rather than operational deficits. AI GOES MAINSTREAM At the 2024 NACS Show, Accenture analyst Brian Gray said that 97% of executives believe AI will fundamentally change the mobility retail business over the next five years. AI won’t replace human functions, he noted, but instead allow people to spend more time on the things that they want to do at work. The overarching message? Learn about AI and test it out—now. From supply and contract management to predictive forecasting, universal dispatch, BOL reconciliation and invoicing, AI-driven insights significantly reduce reliance on manual decision-making processes, optimizing the entire fuel supply chain. Fuel retailers under pressure to improve margins without a steep learning curve can fortify workflows with easily implemented AI solutions to provide measurable, near-term ROI—all while keeping pace with, or surpassing, datadriven competitors. FuelsMarketNews.com

RETAIL OPERATIONS

MIDMARKET ENTERS THE INNOVATION RACE Enterprise-level technology isn’t just for the big players. We’ll see plenty of midmarket fuel operators adjusting even the tightest budgets to level the playing field with automation. The payoff? Streamlined operations, centralized data analytics and faster invoice reconciliation, all combining to optimize fuel operations from end to end. Especially for smaller retailers, integrated solutions will reduce the need for extensive manual labor and specialized skills, allowing them to do more with less. Using scalable tools, operators can continually assess and track the ROI of their fuel management systems, adjusting as needed in near-real time without losing inventory or revenue to common issues like fuel variance, delivery reconciliation or carrier accountability. Overall, whether poised for growth or acquisition, midmarket retailers will embrace the efficiency of automation to power their business goals. WORKFORCE DEVELOPMENT GETS REAL C-store leaders have been steadily upping their game to provide top-notch offerings for customers. This year, that investment will extend into training the folks who bring that experience to life. We’ll see enhanced focus on employee development, from hiring ahead of need to proactive career planning. It’s no small task in an industry traditionally plagued by high turnover and burnout rates. One McKinsey study named lack of workplace flexibility as a leading cause of attrition—and that’s tough to address in a brick-andmortar setting. Integrated technology can open new doors. With new tech systems rolling out within an organization, retailers can provide comprehensive training for staffers, filling skills gaps as needed. FuelsMarketNews.com

Employees will gain new capabilities as part of greater workforce development, while automation frees up management time to focus on customers. The flexibility workers are looking for is covered by technology too, as more fuel retailers engage predictive AI scheduling software. Cross-referencing worker availability with store profile, sales and traffic forecast data can enable automated staffing plans to improve workforce operations and boost employee satisfaction. BRAND IMMERSION IS THE NEW CUSTOMER EXPERIENCE Today’s c-stores are all about the 360-degree experience—a trend that will continue to evolve in the new year. Fresh produce, local beverages and prepared sandwiches are just the beginning. In 2025, customers will be more likely to see a professionally trained chef prepping meals, perhaps in an open kitchen. While they wait, customers might try food samples offered by a concierge staff member walking the floor. Beyond grocery items, ambiance will be a top priority in the coming year. Open concept, bright, organized layouts will define locations designed to make customers feel welcome and relaxed. This level of enhanced customer experience will be in part powered by technology. Integrated platforms will capture personalized preference data, for example, leveraging it to create custom beverage or car wash subscriptions, to encourage repeat business. There is no question that technology—AI in particular—will drive success for retail fuel operators in 2025, from optimizing supply logistics to streamlining back-office functions. In addition, resource reallocations made possible by integrated platforms will create opportunities for proactive workforce development and an enhanced customer experience.

By using integrated technology to refine and enhance supply logistics, the writeoff threshold once considered the usual cost of doing business will be significantly reduced.

Paul Lauinger is the vice president of sales, North America, for Titan Cloud, which provides a leading fuel asset optimization software platform that currently monitors 50% of all U.S. consumer gasoline throughout. Learn more at www.titancloud.com.

FMN Magazine SPRING 2025 | 17

RETAIL OPERATIONS

Cars as Your Customers What if you could drive your smartphone? BY ROY STRASBURGER

he growth rate for electric vehicles in the United States is uncertain. While there’s no doubt that EVs will continue to grow as a percentage of the U.S. road fleet, what is uncertain is the future regulatory and incentive climate and how it will affect the EV growth curve. Within its first month, the Trump administration has raised the idea of rescinding or not renewing incentives and subsidies that were passed under the Biden administration, as well as changing the CAFE (Corporate Average Fuel Economy) and emission standards that promote more carbon neutral vehicles. 18 | FMN Magazine SPRING 2025

Many EV enthusiasts think that the growth of EVs is dependent upon incentive programs to encourage people to buy the cars. They point to Norway, which has a comprehensive system of tax incentives, driving benefits (EVs do not pay tolls on the highways) and government subsidies that encourage EV ownership. According to Reuters, 89% of new cars sold in Norway in 2024 were fully electric. By comparison, in the United States, Cox Automotive reported that 8.1% of new car sales in the country were electric. (Keep in mind that 1.3 million EVs were sold in the United States and 128,000 in Norway.)

At the February 2025 Electric Vehicles Vision Group (evVG) meeting, Karl Doenges of the Transportation Energy Institute had an interesting observation: Only about a third of new EVs sold in the United States took advantage of the tax incentives available from the U.S. government, a surprisingly low percentage. A major factor, Doenges noted, could be because the people buying the cars had income levels that were too high to qualify for the incentives or because the cars they purchased did not have enough components made in the United States. Doenges floated another theory, this one related to convenience outweighing financial incentives: Most EVs, and especially EV startups like BYD (the largest EV manufacturer in China), offer consumers something that they cannot get in legacy internal combustion engine (ICE) vehicles—a car designed around software. (The related FuelsMarketNews.com

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RETAIL OPERATIONS

Vision Report is at vgnsharing.com). The new EVs are just an extension of the smartphone—everything you need located in one place—plus, EVs will take you places. Furthermore, the car’s functions are based more on software code rather than mechanics. Using over-the-air (OTA) software diagnostics, you don’t have to take the car into the shop to find out what is wrong with it; you just have the manufacturer do a software scan. This software-based model is why it is possible to have features such as self-driving, voice commands and a full media entertainment system operate together seamlessly at 70 miles per hour. With OTA, the car manufacturer can change efficiency, functionality, entertainment systems and almost anything else that it takes to keep the car operating safely—except for replacing the tires. OTA gives manufacturers the ability to provide upgrades to the car’s performance at any time. For example, if new software is written to allow automatic parallel parking it’s done in an update. Even more intriguing are the financial opportunities. In the future, if you want your car to accelerate from 0 to 60 in 2.8 seconds rather than 4 seconds, you could purchase a monthly subscription that will allow your car to do it. Cancel the subscription and you end up in the slow lane. The flexibility of software upgrades is going to become an important issue for convenience and fuels retailers. One of the programs that is under development is a “purchase from your car” option, Doenges noted, which will FuelsMarketNews.com

use AI in the car to shop without ever having to access your phone. Imagine that you’re driving; you’re hungry and you want a sandwich. You ask your car to find the closest sandwich provider that has at least a four-star rating. Your car locates a shop, orders your favorite sandwich based upon your history and pays for it using your credit card. It then autonomously drives you to the store where you pick up the sandwich at the drive-thru window. Then you continue on your way, having lost the minimum amount of time for the diversion. Fast, easy and frictionless. The question you should be asking yourself, as a retailer, is “Could that have been my store?” If the answer is anything other than “Yes,” your future is in question. With that example in mind, here are critical questions to ask about your business: 1. What is, or what is going to be, your offer to the customer? 2. How can you ensure that it is the highest quality product available? 3. How are you going to gather positive customer reviews? 4. Is your store, and its offer, listed on every social media platform possible? (Check out NACS’ THRIVR program at convenience.org/ thrivr for help with this.) 5. Can you consistently deliver a quality offer? Most importantly, change your mindset to consider how you adapt to change. In the future, the car will be your customer—not just a means of transport.

When you think about it, the new EVs are just an extension of the smartphone— everything you need located in one place— plus, EVs will take you places.

Roy Strasburger is the CEO of StrasGlobal. For 35 years StrasGlobal has been the choice of global oil brands, distressed assets managers, real-estate lenders and private investors seeking a complete, turnkey retail management solution.

FMN Magazine SPRING 2025 | 19

Make The Right Connection ISO 15118-20 works to smooth the current stumbling blocks with EV connectors. BY CAITIE ROMANO

he EV industry is relatively new and still evolving. That creates challenges of compatibility and interoperability for EV and EVSE manufacturers, related to both the data interface and the various connectors. However, the ISO 15118-20 standard, which is an interface between the vehicle and charging provider, works to eliminate many of those challenges as it facilitates charging features. DEFINING COMMUNICATIONS The ISO 15118 standard defines the power and communication interface between a battery-powered electric vehicle (BEV) or plug-in hybrid electric vehicle (PHEV) and the electric vehicle supply equipment (EVSE), the charger

20 | FMN Magazine SPRING 2025

or charging station. The ISO 1511820 standard, an update of the ISO 15118-2 standard, defines the communication protocol between the EV and the EVSE. Key features in the standard that facilitate convenient, secure and efficient charging include: • Plug and charge (PnC) seamless authentication and billing, which allows automatic identification, authentication and billing. • Secure communication using encrypted data exchange prevents user information from unauthorized access. • Bidirectional energy flow, so energy goes to the vehicle for charging and back to the power grid for load

balancing and energy storage. Image Caption Goes Here • Dynamic power management enables the EV to request a specific charging power based on the state of the battery, the power capacity of the EVSE and demand on the grid. • Smart charging for load management, which includes charge scheduling and modifying the charging rate based on grid conditions and use of renewable energy to optimize energy use and reduce costs. • Cross-manufacturer compatibility provides interoperability between different manufacturers’ EVs and charging stations. • Support for fleet operations allows for centralized control over multiple vehicles’ charging sessions and roaming across different charging networks. • Scalability and extensibility enables future updates and new features, including new types of vehicles, charging methods and energy services. FuelsMarketNews.com

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WHOLESALE OPERATIONS COMMERCIAL FUELS

COMMERCIAL FUELS

EV CHARGING CONNECTORS Now that the communication interface is being addressed, what about the connector? The two need to have compatibility to achieve the full capabilities. There are multiple standards that define the connector requirements for EV charging, as each manufacturing region has its own connector standards. Those standards enable the implementation of the features described in ISO 15118-20. ISO 15118-20 communication protocols between the charger and the EV BMS regulate the charging process. Communication ensures safe and efficient charging by monitoring the battery’s state-of-charge (SoC), temperature and other parameters. User and EV safety features include overcurrent protection, insulation monitoring and ground fault protection. AC CHARGING STATIONS In the mid-2000s, the Society of Automotive Engineers (SAE) developed a specific connector for AC EVSEs. The SAE J1772 standard defines a type 1 connector with five connections. The J1772 type 1 connector for single-phase AC charging can support charging power up to 19.2 kW, delivering 240 V @ 80 A. The average charge rate in a Level 2 charging station can be as much as 25-30 miles of range/ hour. This connector is primarily used in North America and Japan. Some basic J1772 Level 2 chargers have limited ISO 15118 integration in commercial applications, though that is rare. DC FAST CHARGING The primary push in the retail charging and in many commercial use scenarios FuelsMarketNews.com

is Level 3 chargers that use DC fast charging technology. This is where ISO 15118 integration comes to the forefront. To upgrade the charger connector, North American EV charger manufacturers have adopted the combined charging system (CCS) connector defined by the SAE as a J1772/CCS combination coupler. The CCS Type 1 connector can support charging rates up to 350 kW at voltages up to 1000 V and current levels up to 500 A. DC fast charging enables high power delivery, which significantly reduces the time needed to charge an EV battery. Factors affecting charge time include the power rating of the charging station, the charging rate that the vehicle’s battery management system (BMS) will allow and the battery capacity. Typically, DC fast charging stations can charge an EV to 80% of full charge in 20 to 40 minutes. THE NACS CONNECTOR Due to its market leadership, Tesla developed its own connector for EVs and EVSEs in the North American market. The SAE is standardizing the connector under SAE J3400. The connector is called the North American Charging System (NACS). This is currently becoming highly competitive with CCS. Since Tesla charging stations are considered the most reliable and are the most prevalent in the North American market, most commercial EV charging station manufacturers have adopted the Tesla NACS connector. The NACS connector is smaller than the CCS Type 1 connector and can support AC charging at up to 80 A and 277 V. With DC fast charging, the connector can support up to 1000 V and greater than 650 A.

The ISO 15118-20 standard, an update of the ISO 15118-2 standard, defines the communication protocol between the EV and the EVSE.

Caitie Romano is the marketing and communications manager for BTC Power, a manufacturer of electric vehicle charging systems in North America. .

FMN Magazine SPRING 2025 | 21

Net and Gross Gallons A simple look at an often-mysterious industry reality. BY BRIAN REYNOLDS

here are many departments within any petroleum organization that require a great deal of specialization and experience. A quick list includes daily supply chain operations, procurement, construction, environmental compliance, IT/security/payment systems, pricing, marketing and accounting. All these fields require a great deal of education and experience. 22 | FMN Magazine SPRING 2025

One concept should be easy to understand, but frequently isn’t—the concept of net and gross gallons. If Rod Serling from “The Twilight Zone” were in the petroleum industry, I could imagine him saying: “There is a fifth dimension beyond what is known to man. It is in the middle between science and superstition. This is an area we call net and gross gallons.” Now, as Serling would say, “Let’s

unlock this door.” The paint industry originally developed the concept of shipping net and gross gallons in the late 1800s. It appeared that the paint level changed during shipping and there was a visible paint line in the barrel. This phenomenon led to the delivery and billing process of the net and gross, temperature-adjusted to a mathematically stable 60 degrees that then became the basis for invoicing. Fuel product transactions in the downstream petroleum market often refer to both net and gross gallons. Depending on various considerations, marketers pay for fuel on net or on gross. Many marketers track unit (gallon) inventory based entirely on FuelsMarketNews.com

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FUEL MARKETERS

which method they use to pay for it. For example, if they pay their suppliers for net gallons, they update their inventory systems with net gallons. This practice will produce a correct accounting gross profit calculation for the financial statement. But it does not produce the truest over/short gallon result. It’s useful to start with this: All statistical inventory reconciliation (SIR) providers require gross gallons. Their SIR certification demands it. Those who have studied the issues of fuel inventory tracking most thoroughly are in complete agreement that gross gallon inventory accounting produces a more reliable metric than a method that books receipts using net gallons. Consider this: The meters at the terminal measure gross gallons. The meters at the retail site measure gross gallons through the dispensers. The automatic tank gauge measures gross gallons. Before we go furher, lets define the meaning of net and gross. Gross means the total or whole amount of something, whereas net is what remains after the whole after certain deductions are made. In the case of petroleum, the deductions for this conversation are temperature. In finances we talk about gross profit margins, but what matters the most is net profits. So why are net and gross gallons seemingly difficult to understand? Mostly because the answer keeps changing. The reason why the answer changes is the reason why the standardization FuelsMarketNews.com

was created in the first place. The only time petroleum gallons are stable is when the temperature of the product, the outside temperature and the temperature inside the tank all equals 60 degrees. Or more simply stated, net gallons equals gross gallons at 60 degrees Fahrenheit, which hardly ever happens—hence the concept of temperature adjusted. No matter what the temperature is, the price was mathematically adjusted as though it was 60 degrees. So if fuel is warmer than 60 degrees it is going to shrink slightly. If it is colder than 60 degrees it is going to expand slightly. The good news is that the reality of how much it expands or contracts is not a large number either way. There is also another reality that deserves consideration. Temperature is not the exclusive reason for a loss. It can be lost due to meter drift at the terminal or dispenser, theft, delivery issues and leaks. All of these possible sources of loss can be detected and then further minimized through actionable processes. As it applies to fuel inventory reconciliation, another quote from Rod Serling is: “It may be said with a degree of assurance that not everything that meets the eye is as it appears.” Just because the truck delivered the fuel, ATG acknowledged a delivery and an invoice shows up in the mail, that doesn’t mean that you shouldn’t question the accuracy of the information.

Depending on various considerations, marketers pay for fuel on net or on gross. Many marketers track unit (gallon) inventory based entirely on which method they use to pay for it.

Brian Reynolds was one of the key architects of inventing reward-based fueling loyalty. He currently works as an industry consultant.

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The Shape of Things to Come? Breaking down how fuel tanks are evolving beyond the traditional round tanks. BY JESUS RODRIGUEZ

icture a fuel tank. Most likely, you’re envisioning something round, the traditional shape used in construction and industrial industries. But other shapes are growing in popularity, including cubes, which can offer increased on-site productivity, cost savings and hassle-free refueling. 24 | FMN Magazine SPRING 2025

TWO DIFFERENT DESIGNS, TWO DIFFERENT RETURNS For companies across industries, bulk fuel storage offers more control and flexibility. On-site, on-demand fuel means there’s no wait for fuel deliveries. And that means teams can work without the downtime or shutdowns that are caused by fuel outages, regardless of their shape.

Traditional round tanks are the dominant shape because they are cheaper and easier to produce and typically cost less upfront than other shapes. However, additional features, such as fork pockets, containment pans and lockable pump boxes require added fees and lead times. Cube tanks, by contrast, cost more upfront because of their more sophisticated design—but most features that are considered additional in round tanks are already included and built into the price. Their standard design allows them to be easily forklifted from truck to jobsite and quickly connected to on-site equipment thanks to included pumps and feed and return lines. Their design is also easier to clean and maintain. All of this can save time and money, FuelsMarketNews.com

FUEL MARKETERS

meaning that the higher initial cost of a cube tank can be offset over time by reduced operational costs. ROUND VS. CUBE TANKS: TRANSPORT AND MAINTENANCE Construction work can take you to remote locations, some more logistically challenging than others. Round tanks and cube tanks each bring different capabilities to a jobsite based on how they’re delivered, installed and stored. Traditional round tanks are typically transported empty to a location and fueled on site. Due to their shape, round tanks often require a crane to place them onto the ground and to move them around a site. A protective berm may be required to be installed around them to collect any drips, spills or even rainwater, all of which must be regularly cleaned out. Cube tanks can be delivered to a site already full. They feature a double-walled design that makes them self-contained and leak proof, meaning no berm is necessary. Their design also enables them to be forklifted around jobsites without first needing to be emptied or cleaned. When it’s time to clean, that double-walled design can include a port for easy siphoning. Additionally, the outer wall provides an extra layer of protection against drops, dings and inclement weather compared to single-walled round tanks. FuelsMarketNews.com

KEEPING FUEL SECURE: LOCKS AND TECHNOLOGIES Higher fuel prices can lead to higher incidents of fuel theft. Here’s how round tanks and fuel cubes differ when it comes to securing and tracking what’s inside. With round tanks, accessories such as pumps may need to be stored outside the tank. On the other hand, cube tanks feature lockable equipment cabinets to secure various equipment and fittings. Fuel management systems are available for both round and cube tanks and can also assist with security and efficiency. These systems allow you to monitor the level of fuel in the tank and relay it remotely via cell data. A distributor can then monitor the tank’s level and fill it up accordingly. These systems also let you assign a PIN to each user of the tank, securing the fuel and letting you track fuel usage by individuals across a site. The key difference is in the installation of these options. For round tanks, these systems must be added onto tanks via an electrician on site. Cube tank manufacturers may offer fuel management technologies already installed as an added option, saving the time and cost of installation by an electrician. The differences between round and cube tanks add up to two philosophies on fuel storage. The right choice for your business will come down to your desire to save upfront with a round tank or to accumulate higher savings over time with the added productivity and security of a cube tank.

Jesus Rodriguez is a regional product manager for Western Global, which provides environmentally secure fuel storage for temporary power and mobile fueling applications.

FMN Magazine SPRING 2025 | 25

Charging Up Dispatching Manual processes might get the job done, but modern software takes dispatching to the next level. BY PAVAN MAHESHWARI

re you still running dispatch through Outlook calendars and WhatsApp groups? Shouting across the room to coordinate deliveries? Buried under mountains of paper tickets and Excel sheets? If you’re nodding along, you’re not alone. Maybe you’ve thought about getting dispatch software but were worried about the investment—both in time and money. After all, your current system still gets fuel delivered ... most of the time. But if orders are getting missed, drivers are working overtime and you’re losing track of which customer needs what product when— something’s got to give. 26 | FMN Magazine SPRING 2025

WHAT EXACTLY IS FUEL DISPATCH SOFTWARE? Think of your fuel operations as a pipeline: orders flow in one end, cash flows out the other. But right now, that pipeline probably has leaks at every stage, from order intake to cash collection. Orders get lost in e-mails and phone calls. Dispatchers play phone tag with drivers. Billing is delayed because someone can’t find the right paperwork. Each leak is money dripping away from your bottom line. Dispatch software plugs these leaks by managing the entire order-to-cash pipeline. It handles everything from capturing orders—whether they

come through calls, e-mails, customer portals or tank monitors, to streamlining dispatch and delivery, all the way through to automated invoicing. At each step, it can replace manual processes with automated workflows, eliminating those costly human errors and delays. At each step, it can replace chaos with clarity. Core features typically include: • Centralized order management • Real-time GPS tracking and route optimization • Digital driver tools for paperless operations • Automated inventory tracking • Pricing and fee management • Integration with your accounting software, tank monitors and meters • Real-time analytics to spot inefficiencies WHEN DO YOU NEED ONE? As Carl Kleimann, the co-owner of Moffitt Services in Texas puts it: “The cost of bad logistics is the highest it’s FuelsMarketNews.com

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FUEL MARKETERS

ever been. The cost of fuel, the hourly rate of CDL drivers with their hazmat and tanker endorsement, the cost of a fuel truck—all of them are higher than they’ve ever been in my lifetime. So, if you’re not optimizing the method and manner in which you’re deploying those resources every day, you are in bigger trouble than you’ve ever been.” But you don’t have to have inefficiencies before you consider dispatch software. Last year, FleetPanda met a fuel marketer who was just starting his business. His trucks hadn’t even arrived yet. But there he was, already implementing dispatch software. “I’ve seen too many businesses struggle to break free from their old ways,” he told us. “I want to start right.” You might consider dispatch software when: • You’re spending more time firefighting the same issues than growing your business. • Each business line is on a different system or paper-based workflow. • There’s no visibility into the business—how are your drivers really doing? Where are they and what are they doing at a given moment? What is the ROI on your rental assets? Can you route better? Why are there delays in invoicing? • You’re seeing human errors crop up in multiple parts of the business. • Drivers are shuffling through paper tickets, doing lots of overtime and making human errors. • You’re losing money on inefficient routes and overtime. • Your invoicing takes days instead of hours. • You’re doing repetitive data entry across multiple systems and paperwork keeps piling on. • Your growth requires doubling staff to handle double the FuelsMarketNews.com

volume—that’s linear growth, and it’s not sustainable. The goal is to achieve non-linear growth, where you can double your business without doubling your headcount. That’s only possible when you have systems that scale. THE REAL BENEFITS Let’s talk specifics about what good dispatch software delivers. For your dispatchers: Remember that dispatcher who came in at 5:00 a.m. to plan routes? Now they’re building optimal routes with a few clicks. Recurring orders? Set them up once, then they run on autopilot. Tank monitor orders? They create themselves when tanks hit preset levels. Dispatchers can see where the drivers are in real-time, what their compartment-level inventory is and make changes to routes and orders on the fly. No more shouting across the room or playing phone tag with drivers—everyone sees real-time updates on one screen. For your drivers: Instead of shuffling through paper tickets and making endless calls, drivers get their entire day’s schedule, turn-by-turn navigation, customer details and delivery instructions right on their phones. They scan a QR/barcode at the asset, and boom—they know exactly which product goes where. No more running back and forth to trucks to check meter readings—it’s all captured automatically through meter integrations. For your back office: Real-time delivery data means same-day invoicing. No more manual data entry into accounting systems. No more reconciling paperwork against spreadsheets. One fuel marketer told FleetPanda they went from taking 3-4 days to process invoices to same-day billing.

Think of your fuel operations as a pipeline: orders flow in one end, cash flows out the other. But right now, that pipeline probably has leaks at every stage from order intake to cash collection.

FMN Magazine SPRING 2025 | 27

FUEL MARKETERS

Pavan Maheshwari is the founder and CEO of FleetPanda, a San Mateo, California-based company dedicated to driving innovative fuel dispatch software solutions for fuel distributors. Reach him at pavan@fleetpanda.com.

BOTTOM LINE Manual processes still get the job done. But in an industry where prices fluctuate daily, and margins are razor-thin, good enough isn’t good enough anymore. While you’re reconciling last week’s paperwork, your competitors may be using data to optimize tomorrow’s deliveries. The right dispatch software isn’t just about replacing paper with pixels— it’s about giving your team the tools to work smarter, not harder. The fuel industry has always been built on relationships and reliability. Modern dispatch tools don’t change that foundation; they just help you deliver on those promises more efficiently. Think of it as taking everything that makes this industry great and giving it a turbo boost.

For your busintess growth: The real game-changer is about getting control back and getting 360° visibility and analytics. You know exactly where every truck is, the status of every order and how efficiently your team is performing. No more guesswork, no more “we think we’re doing okay.” You get hard data to make smart decisions. For your customers: This is where you really shine. Right product, right tank, right time—every time. Give them a portal to place orders and track deliveries like they track their Amazon packages. No more cross-fills, no more waiting days for delivery tickets or invoices. Happy customers become loyal customers.

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Executive Education

Equipping today’s leaders for tomorrow’s challenges. From disruption comes opportunity. At this very moment, the convenience industry is rich with possibility. The key to success? Leaders who can forge a new path. Informed, confident and nuanced leaders are the best asset an organization can have. NACS Executive Education has partnered with world-class, Ivy League institutions — boasting some of the best educators in the world — to provide exclusive education to shape the forward-thinking, determined leaders who will illuminate and seize the opportunities of tomorrow.

convenience.org/NACSExecEd

July 13-18, 2025

The Wharton School University of Pennsylvania Philadelphia, PA

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The NACS Master of Convenience designation acknowledges the leaders from around the globe who have invested in their personal leadership development and attended 3 or more NACS Executive Education Programs. Learn more at convenience.org/NACSMaster.

WHAT

DRIVES CONSUMERS’ PURCHASES? By Keith Reid

A consumer study looks at purchase decisions at the pump, inside the store and at the showroom.

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FuelsMarketNews.com

t’s no surprise that consumer purchasing decisions in the transportation sector are driven by multiple factors, given that purchase prices range from a dollar or two for a snack inside the store to tens of thousands of dollars for a new vehicle in a showroom. While price is always a major component in purchase decisions, there are other factors that inform the purchasing decision. NACS and the Transportation Energy Institute (TEI) recognize this reality and regularly commission consumer surveys to learn what’s on customers minds and how that may affect purchasing decisions. Let’s look at some of the findings from the survey and what they may mean to your business. PRICE AND ECONOMIC OUTLOOKS The importance of price to the consumer has long been established and reinforced by numerous similar surveys conducted by NACS, among others. Prices affect how consumers feel about broader economic issues, which factors into purchases. Fuel prices are a major influence on how Americans feel about the economy. Thirty-nine percent of consumers indicated that fuel prices had a “great impact” on their impressions about the economy, and another 46% said prices had at least some impact. At the time of the survey, prices had been between $3 and $4 per gallon from July 2022 onward. Overall, 55% of consumers were pessimistic about the economy, compared to 45% who were optimistic. Those living in the South and the West were marginally more optimistic, as were those who work from home or who live in urban environments. Women and younger consumers also were more optimistic. The highest percentage of consumers who said that price had a “great impact” on their feelings about the economy were those in the West (53%), which is not surprising given that gasoline is typically the most expensive in the West. Across all consumer categories, there were very few people who said gas prices had “no impact” on their

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feelings about the economy. How does the strong consumer focus on price play out with alternative liquid fuels and charging? “It’s a fundamental issue—if the energy being offered to consumers is considered too expensive, they will avoid it,” said John Eichberger, TEI’s executive director. “As the industry attempts to present new options to drivers, those options have to be economically competitive, or they will most likely fail.” PRICE AND CONSUMER BEHAVIOR Some 70% of consumers said gasoline price was the most important factor in the purchasing decision, followed by location at 20% and brand at 10%. Brand does not necessarily mean “branded” in the sense of the major oil companies. And even there, more than half of consumers liked the brand because it tended to have lower prices. Upon further questioning, consumers reiterated that price was still the most important factor (56%), but close behind was the location of a particular store (48%), quality of fuel (46%) and a loyalty program (38%). That fuel quality scored so highly contradicts some conventional wisdom in the industry that increasingly, since at least the 1960s, fuel has been seen as more of a commodity. In the earliest days of the industry before World War II, fuel quality issues, particularly related to octane, were notable. This became less of an issue in the 1950s and 1960s but came back to the fore, somewhat, in the 1970s with such issues as the early experimentations with gasohol. However, anything approaching routine problems with gasoline have long slipped into the past, to where a problem with the product is almost a case-by-case limited issue. “Consumers want to make sure what they put in their vehicle will not cause problems. It is easy for a driver to think that any performance issue is fuel-related,” said Eichberger. “While they may not understand what fuel quality actually means, their instincts will kick in and retailers will be blamed.” FMN Magazine SPRING 2025 | 31

He noted that retailers who stand behind the quality of their fuel and guarantee customer satisfaction may insulate themselves from unfair reputational damage. It’s also worth noting that drivers with more expensive vehicles perceive fuels marketed on quality as offering enhanced performance and cleaner engines that benefit their quality vehicle. THE ‘DRIVE’ TO SAVE MONEY Time is money, as the saying goes. But just how much time (in the form of driving) is a consumer willing to spend to save 5 cents on a gallon of gasoline? Fully two-thirds (66%) of consumers said they would drive 5 minutes out of their way or turn left across a busy intersection to save 5 cents per gallon. Surprisingly, nearly half (48%) would drive 10 minutes out of their way for the same savings. The survey notes that this willingness to inconvenience themselves did not vary much by gender, age group or region.

The amount of money in a person’s wallet, whether cash or a card, can influence how much fuel is purchased during a visit. Fifty-nine percent of consumers fill their tanks. Meanwhile, 24% budget how much to purchase each visit and 14% fill their tanks with whatever cash is on hand at the time. WHERE THEY BUY FUEL As might be expected, most consumers purchase their gasoline at either a convenience store or a service station (a smaller gasoline-heavy operation that is much lighter on convenience offers). That breakout is 55% for the full-service convenience store and 26% for the service station. The final group, 18%, purchase their fuel at a big-box retailer. This competitor arrived in force in the industry in the early 2000s (though the concept had been fielded sporadically throughout the 1960s). Those over 65 years of age are significantly more likely to buy fuel from a big-box retailer.

70%

Some of consumers said the gasoline price was the most important factor in the purchasing decision followed by location at 20% and brand at 10%. This illustrates that with gas prices emotion tends to dominate logic, because driving so far out of the way might not necessarily equate to actual savings when factoring in the cost of the gas. THE TIMING OF FUEL PURCHASES The time at which consumers visit their retail fueling location has long been important to the industry, particularly when considering how to position other offers to meet specific daypart needs. It can also have some impact in areas relative to any fuel transition, such as charging. Fuel purchases were roughly evenly split between morning (27%), midday (36%) and afternoon (30%), with the remaining 8% between 7:00 p.m. and 6:00 a.m. 32 | FMN Magazine SPRING 2025

The big-box retail opportunity touches on the driving distance response noted earlier. These retailers can offer a notable savings on gasoline, yet at the same time are generally spread out through an area. The 65-years-or-older group was significantly more likely to drive a greater distance to save on gasoline compared to other age groups. A DEEPER DIVE INTO THE STORE Price clearly dictates fueling decisions, but what about the in-store offer? Consumers were asked to think about the main reason for their visit to a convenience store. Most (53%) said to buy gasoline, 20% said to buy food/ meals/gum/snacks, 15% said to buy a beverage, 9% FuelsMarketNews.com

said to use the bathroom or ATM and 4% said for “other,” which included purchases like tobacco. Once the customer is on the lot and filling their tank, 57% of respondents said they went inside the store to meet other needs. Of that group that went inside the store, 46% bought a drink, 39% bought a snack and 27% used the restroom. Understanding consumer buying behaviors can help identify where to effectively locate desirable amenities, whether at the fueling island or at charging stations. “Fuel still represents around 60% of a convenience store’s revenue,” Eichberger said. “That said, fuel efficiency is going to reduce total gallons sold and extend range between refueling visits, although smaller vehicle fuel tanks will mitigate some of the impact on total trips. Retailers should be focused on establishing a reputation and creating a customer draw for something other than fuel.”

“When we ask consumers what is most important about the vehicles they purchase, many other features rank more important than fuel economy because they are focused on the vehicle and their driving experience,” said Eichberger. “But when we ask where you buy fuel and why, their focus is on that transaction and in that respect, they care about price. A big difference is that consumers have choices of vehicles, but they don’t have too many choices about the energy they purchase for those vehicles.” Price was also raised in terms of life-cycle cost of vehicles, whether conventional, hybrid or EV. More consumers felt conventional vehicles would have the lowest cost of ownership (39%), compared to hybrid electric vehicles (25%) and fully electric vehicles (17%).

VEHICLE PURCHASE PREFERENCES Going beyond shopping behavior at the store, consumers were also asked about their behaviors in showrooms. Vehicle purchasing has an impact on the fuel side as newer vehicles tend to be more fuel efficient, thus incrementally decreasing gasoline demand—or eliminating that demand entirely. The survey found that nearly half (40%) of consumers said they are likely to purchase or lease a new or used vehicle within the next two years. Those ages 18-34 are more interested in acquiring a vehicle, with 56% saying they are likely to do so, whereas only 29% of those over 65 are likely to make such a purchase. What were consumers looking for in that purchasing decision? Once again, price comes to the forefront. The top four attributes were purchase price (30%), reliability (19%), safety (16%) and fuel economy (13%). Lower-rated attributes were vehicle size, comfort, maintenance cost and horsepower, to name a few. An interesting observation is that while the fuel price is a dominant driver among consumers, fuel economy came after safety and reliability for those considering new vehicles. When allowed to select more than one response, reliability (79%) topped the list of factors considered important. It was followed closely by purchase price (77%), safety (72%) and maintenance cost (69%). The level of importance of these factors did not vary significantly among genders or age groups.

FEELINGS ON RIDESHARE AND OTHER NEW OPTIONS There are a variety of future-looking technologies and approaches entering the light-duty transportation sector, including the rideshare/ on demand service phenomenon, electric vehicles and autonomous (self-driving vehicles). What did consumers think about these? Less than half of all consumers reported a positive attitude towards ride-share services (45%), electric vehicles (40%) or autonomous vehicles (25%). However, attitudes varied considerably between specific demographics. The 18-34 age group, followed by the 35-49 age group, were more open to these alternatives, as were urban dwellers, who were more appreciative of rideshare/demand services. Electric vehicles were seen more positively among younger drivers, as well as those living in the Northeast, West and urban markets. While attitudes toward autonomous vehicles were not particularly positive overall, men and younger consumers were more supportive of the concept.

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About the Survey

On behalf of NACS and TEI, the consumer survey was conducted by national public opinion research firm Bold Decision (bold-decision. com); a total of 1,200 U.S. drivers were surveyed. The margin for error for the study is +/- 2.83 at the 95% confidence level.

WHERE AND HOW LONG WILL THEY CHARGE? When asked where electric vehicle charging stations should be located, consumers overwhelmingly agreed (71%) that convenience stores and gas stations should offer charging services. Hotels (61%), grocery stores (58%) and malls (57%) were also popular responses. (More than one option could be selected.) There was no FMN Magazine SPRING 2025 | 33

71%

When asked, of consumers agreed that convenience stores and gas stations should offer charging services. significant variation among demographic groups or regions. Charging at home was not included as an option: So how is that likely to factor into the consumer/convenience retail experience? Eichberger noted that according to the U.S. Department of Energy, approximately two-thirds of homes in the United States have access to a garage, but other reports indicate only half of single-family home garages house a vehicle. “Clearly, an advantage of an EV is to charge at home overnight—it’s convenient and saves money—but not everyone can do that,” Eichberger said. “As EVs gain market share, more and more owners will need public access chargers. Retailers should be focused on serving this growing population, as well as the home charging drivers who need to charge when away from home.” A real eye-opener was related to the amount of time consumers said they would be willing to spend charging. The mean response—the collective average—was 44 minutes, while the median response—the midpoint of all responses—was only 20 minutes. It’s important to mentally contrast this timeframe with the current reality for most ICE vehicle drivers: approximately 5 minutes to refuel a vehicle and about 3.5 minutes spent inside a convenience store. Men, younger drivers and those in the South seemed to be more open to a longer charging time whereas those in the West seemed to be the most impatient. 34 | FMN Magazine SPRING 2025

“I initially would have thought consumers were not fully appreciating how long 44 minutes might be and that their behavior in reality would differ significantly,” Eichberger said. “Yet, actual data proves that EV drivers are charging for about 40 minutes when they plug into a public direct current fast charger (DCFC).” He said that the TEI Charging Analytics Program (CAP) analyzes nearly three million charging sessions each month and found that the average length of these charging sessions is about 40 minutes. “For convenience retailers, this represents a great opportunity,” said Eichberger. “According to CAP, each DCFC located near a convenience store charges about 150 vehicles per month. If there are six chargers at a station, that is 900 customers spending 40 minutes each—and innovative retailers should be able to convert a significant share of these drivers into in-store customers.” FINAL THOUGHTS Consumer surveys like this allow those in the transportation sector to learn more about what’s on consumers’ minds—and can help inform important strategic decisions in an increasingly fast-changing industry. They also can show how perceptions are changing. Twenty years ago, consumers were far more likely to blame retailers when prices increased, and also were much more likely to seek out the lowest possible price. Meanwhile, new alternatives continue to gain traction.

The full report, “Driver Behaviors and Perspectives,” is available for free at transportationenergy.org. New consumer insights for 2025 can be found in several upcoming NACS Magazine issues, including the April 2025 issue. Look for more at nacsmagazine.com. Finally, more fuels-related resources and backgrounders can be found in the NACs Fuels Resource Center at convenience.org/fuels.

Keith Reid is editor-in-chief of Fuels Market News. He can be reached at kreid@fmnweb.com.

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IN THE LEAD By Keith Reid

36 | FMN Magazine SPRING 2025

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Pride in operations goes well beyond the forecourt.

D MARIO SPINA

OWNER & CEO PARENT PETROLEUM

iversified profit centers are common to help address the uncertainties facing the fueling side of the industry today. Parent Petroleum Co., headquartered in St. Charles, Illinois, provides service and sales of lubricants and oil in addition to wholesale fuels throughout Illinois, Indiana and Wisconsin. And it has taken diversification to another level, especially with its offers linked to its Pride convenience stores that include upscale foodservice, high-end alcohol products (including a liquor store and even a craft brewery) and extensive carwash operations. The store name emphasizes the fact that the operation takes great pride in the stations and the broader operations. Fuels Market News talked to Mario Spina, second-generation owner and CEO of Parent Petroleum, about the company business philosophy and how it looks for new areas of diversification. HOW DO YOU POSITION YOUR STORES IN THE MARKET? We have 17 Pride stores, 13 of which are BP or Arco. They are closely located to each other. We try to be very strategic when we place a store that can do some volume so that it will have a minimal impact on our wholesale customers. That controls our store growth—if we start growing to 40 or 50 stores we’re just going to be competing against a lot of our dealers. But we’ll probably get to 20 or so.

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Our slogan is “Not your typical convenience store,” so we try to have an individual look and feel, and we try to make our stores a little more upscale and warmer. It’s not cookie cutter, but when people walk in the customers know they are inside a Pride store. We try to carry name brand and local items. We sell Vienna Beef hot dogs. We use a local roaster for our espresso beans and our cold brew coffee. We try to carry as many proprietary items as we can. We do our own grab-and-go sandwiches, wraps and things of that nature. We make our own cold brew coffee, and we make our own craft soda which we dispense on draft stations. We have our own commissary and warehouse, and since our locations are close to each other we can pull it off. We do two “grab-and-go” deliveries a week and the other one is dry goods. We can hit all 17 stores in six hours.

Our slogan’s “Not your typical convenience store,” so we try to have an individual look and feel, and we try to make our stores a little more upscale and warmer.

38 | FMN Magazine SPRING 2025

TALK ABOUT YOUR FOODSERVICE. IT’S CERTAINLY NOT AN AFTERTHOUGHT. Our restaurants are in-house concepts and they’re all made-to-order that use local ingredients as much as we can. The menu is higher end, like our Urban Counter concept, which also serves food in our taproom. We make halfpound, hand-pressed burgers—for example, we have a blue cheese burger with arugula. We make all our salad dressings in-house. We also have a Mexican concept called Taco Urbano. We make all our own salsas and when somebody orders guacamole, we make it to order. We still have traditional offers like roller grills—and there’s nothing wrong with that—but we don’t try to compete with other convenience stores. We compete with higher-end QSRs. We also have three Pride Cafés, which is a scaled-down foodservice option. We make paninis and crepes at the commissary and send them out to the stores where we have panini presses. So, customers can get a warm option that is kind of made-to-order and is low labor with minimal equipment. YOU HAVE A SOLID ALCOHOL OFFER, BUT EVEN THERE YOU PUSH BOUNDARIES. THIS INCLUDES A FULL-SERVICE LIQUOR STORE AT ONE LOCATION AND YOU ARE WORKING TO BECOME A CRAFT BREWING SUCCESS IN THE REGION. HOW DID THAT COME ABOUT? In St. Charles, we own the station on the corner, but it’s like a small- to medium-sized kiosk

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format. We couldn’t fit beer and wine in it, so we bought the lot next door. We put in our restaurant, then the liquor store and then we added the tap house. We go up to $600 for a bottle of wine. We have some great bourbon rye items that we sell. We do a ton of barrel picks where it’s a oneoff barrel and you sell bottles of bourbon from that barrel. We try to do everything on the higher end, but we still have affordable items as well. When you go into one of the regular stores, you will still have pretty much everything you’re looking for from a liquor store at a good price point—just not as many varieties. You might want high-end bourbons or high-end $100 wines in some stores and then affordable $8 bottles of wines or whatever the case may be. When we originally started the brewery, it was just a small brew house and a small taproom. We had 12 stores with liquor licenses, and we thought we’d just brew beer for the Pride stores—and maybe try to get into like 30 or 40 really good accounts. We wanted to make some small amount of profit on the beer and give us a unique offer for our stores. But then we started getting busy. We hired a sales rep and then the taproom got busier, and we needed a taproom manager. Then we needed more seating—it kept on evolving. That’s when we moved to a larger production facility for beer, and we’re trying to get to the point where we’re one of the largest craft breweries in Illinois. It’s a tough business, and it’s not going to happen overnight. But we make really good beer, and I think we have a really good team. DESCRIBE YOUR CAR WASH OPERATIONS. I think having a car wash is a nice advantage. We have 10 car washes—eight conveyors and two rollovers. We do the monthly passes and we typically don’t like to do the discount off gas. We just do the basic, “You by eight gallons, you get a dollar off.” That’s been pretty profitable. But we don’t push that as much as we should—EMV was a big distraction—but we’re going to start heavily promoting them this year. We do have these cleaver signs we use to promote them if the property allows. Like, we’ll have a sign that says “Dirty Cars” with an arrow towards the car wash. The problem in our area, and I assume it’s kind of like that throughout the United States, are these freestanding car wash chains that are just popping up everywhere. That makes the car wash segment a FuelsMarketNews.com

lot more competitive. We built a station and on the other side we were going to put conveyor car wash. But they built three car washes in the area while we were going into planning and zoning. ARE YOU AS DIVERSE ON THE RETAIL FUEL AND CHARGING FRONT? Not really—unleaded, midgrade, premium and diesel. We do E85 at some stores. We haven’t got into the lesser-known ethanol blends, and I don’t know if we will. The customers look at what’s the cheapest thing that they can buy, and will having too many offers just confuse people? It’s kind of the same thing with EVs. We’re exploring it a bit but only when we can get funding to support our efforts. TO SHIFT AWAY FROM RETAIL, YOU HAVE A SERIOUS WHOLESALE FUELS OPERATION. We supply 400 stations in the Chicagoland area, and 230 of those are BPs. We’re the largest independently owned BP distributor in the nation. We also supply 91 Shell stations, Mobil, Citgo and then we do unbranded. Our unbranded product is primarily diesel, but we do have unbranded gasoline as well. We don’t do our own fuel hauling—we use third-party carriers. It’s just not something that we’ve ever done. Even when my dad started the company, he always just worked with somebody else to do the delivery. It was something he didn’t want to get into. We probably have 15 to 18 different carriers that we use. DO YOU PROVIDE MOBILE FUELING SERVICES? We don’t do a lot of wet hosing directly, but we have a company that we use that we primarily supply that does wet hosing. And we do some construction sites, but it depends on what they have at the site. We use a couple partners to do that. DESCRIBE YOUR LUBE AND OIL BUSINESS. We do primarily bulk in the Chicagoland area. We moved into our new warehouse in Aurora, Illinois, about six years ago and that was a project. We FMN Magazine SPRING 2025 | 39

WHAT’S IMPORTANT FOR THE LUBE CUSTOMER RELATIONSHIP? Price is always important, but I think service and support are significant. We try to be there for our customer as much as possible to provide as much support as for them as we can. Because, obviously, if they’re successful, we’re successful. They must feel comfortable with you. It takes time to develop those relationships and hopefully get in. But, if you’re able to get in and you provide good service, they are great accounts.

Price is always important, but I think service and support are significant. We try to be there for our customer as much as possible to provide as much support as for them as we can. had to move 80 above-ground storage tanks from our facility in St. Charles and re-pipe them—and it was just a nightmare. We got it done and the facility is great, but it was crazy. We’ve started to deliver to all 48 connected states, and we do some in totes and some packaged. We’re a very large Castrol distributor and we have our own oil brand called Dominion. Oil has really picked up in the past two to three years, which has been fun to see. The packaged business is very hard because you have the large distributors like CoreMark or McLane that supply everything else and they also sell you packaged oils at a decent price—and they’re showing up at your store once or twice a week already. So, the packaged lubes and oils is really competitive. That’s why we concentrate more on bulk. We haul our own product on the lube side. I have eight or nine delivery drivers now, for the bulk lubes, and we have a couple box trucks for packaged goods. We don’t do much in drums. There used to be more synergy on that when it was auto bay stores that sold gas, but that’s not the case anymore. 40 | FMN Magazine SPRING 2025

WITH SO MANY BUSINESS UNITS AND A PUSH FOR EXCELLENCE, HOW DO YOU KEEP ALL THE BALLS IN THE AIR? It’s hard. When you’re in so many different lanes, how much attention do you divvy to each? And it’s not like you just do it based off what’s the most profitable because sometimes you must concentrate on the things that are actually not the most profitable to get them where they need to go. Running a convenience store can be somewhat like a restaurant, but it’s still different. Running a brewery—even a taproom—is different than running a restaurant. And then the distribution aspect of the brewery is a totally different animal when it comes to dealing with the state regulations and everything else. I spend most of my day on retail operations, the restaurants and the brewery, and we have a great guy, Ryan Fuelling, who’s able to really kill it on the wholesale side. You have to make sure you have good people who can help you on the one side while you’re trying to develop the other. It’s really important to have good people work with you, and if you have to treat them the right way. I just had my longest-tenured store manager retire. He’s been with us for 27 years and he’s moving back to Mexico. We have a bunch of managers that have been with us for over 10 years. Running gas stations is not rocket science. If you treat people well, treat them with respect, price competitively, keep your stores clean, you’re probably going to do okay. It’s still very hard to execute though. Keith Reid is editor-in-chief of Fuels Market News. He can be reached at kreid@fmnweb.com.

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Fuel Your Team's Future with a Scholarship!

The NACS Foundation Future Fund awards $3,000 scholarships to convenience store employees and their families. Celebrate hard work, dedication and ambition by helping your rising stars achieve their educational dreams!

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Applications are open through Friday, June 13, 2025.

Visit conveniencecares.org/Future-Fund or email Kevin O'Connell, Executive Director, NACS Foundation, koconnell@convenience.org to download the application and learn more.

FROM ONE OIL TRUCK TO A

MULTI-FUELS TERMINAL By Keith Reid

42 | FMN Magazine SPRING 2025

FuelsMarketNews.com

How Broco Energy refused to be intimidated by the challenges involved in bringing bio and renewable options to the Northeast.

etroleum bulk plants can be a useful component for retailers and wholesalers looking to smooth out their fuel logistics to help counter disruptions or provide some extra storage when prices are particularly attractive. For a select few, full or partial ownership of a fueling terminal can support optimal product costs for their operations, while allowing for a vastly expanded wholesale fueling operation. However, building a new or radically expanding an existing bulk plant, not to mention a full terminal, is not for the faint of heart. Finding good real estate that is properly zoned is always a challenge. Then, there are the costs associated with prepping the real estate for the tanks and purchasing and installing tanks. And of course, there are always permitting and regulatory requirements that can complicate the process. Robert “Bobby” Brown not only accepted these challenges, but faced them with the same drive and determination he applied during his service as a U.S. Navy Seabee. His heating oil company started with a single truck in 2007. Today, it operates 30 trucks and has 40 to 50 employees, depending on the season. The business has expanded to provide mobile municipal and commercial fleet fueling, generator fueling, propane sales and tank maintenance services. OPPORTUNITY KNOCKS In 2018, the company started the journey that would make it one of the more dynamic biofuels suppliers in the Northeast. “We had an office in North Reading, Massachusetts, and a property came up for sale that had eight, 10,000-gallon heating oil tanks for bulk storage,” Brown said. “So, that drew our attention. It was a dirty piece of property with some storage. Very outdated, very old, but perfect for us.” After Brown acquired the property, there was still something about it that he couldn’t get out of his mind. At the rear was a railroad line that had

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a small switch that dated back to the early 1900s. No one, including the previous owner, was aware of the status of the switch. A quick trip to the Recorder of Deeds confirmed that the property was deeded exclusively to that switch. “At the time the economics favored barge shipping versus railroad, but my wife Angela wanted us to differentiate ourselves by providing lower carbon options, which were being driven throughout the region. It occurred to us that this rail switch provided a perfect opportunity to get started as a substantial player in the biofuels market by building up a terminal operation.” One potential stumbling block was that the line was served by what is considered a Class 2 railroad, which created a competitive disadvantage through interchange fees compared to operations served by a Class 1 railroad. However, in discussions with the railroad operator, Brown was able to successfully sell him on the idea that this would be a profitable new venture with significant traffic. The next challenge came from finding additional storage. Brown found an opportunity to grab three decommissioned oil tanks from FritoLay. The deal was practically free except for the costs associated with dismantling and removing the tanks from the site. “Those three 30,000-gallon tanks got us into the game of bulk storage for biodiesel,” said Brown. Three new tanks were later purchased to extend his capacity. At this point, Brown took advantage of his previous work experience. He had been a steel worker in the Seabees, which involved a lot of site work with concrete and structural steel. “Everything that I learned in the Seabees I was able to apply here when I was setting the tanks, designing the concrete pad to handle such a heavy load, putting in the containment system, putting in pipe bridges, establishing a manifold on the rail siding with loadout or offload heads—all my knowledge was applied tenfold building the terminal,” Brown said. FMN Magazine SPRING 2025 | 43

“It’s really not as hard as everybody made it appear. Stay away from wetlands. Don’t do this. Don’t do that. If I listened to all the naysayers, this terminal wouldn’t be what it is right now.” Brown also reached out to others to fill in gaps outside of his experience. For example, rail operations. “I had to fly around to other facilities way outside of my region to see how railroad facilities operated,” he said. “How do you pull a railcar? How do you switch them? How do you transfer products? None of my competitors were going to help me out regionally, so I had some work to do.” FACING CHALLENGES HEAD ON Complications still cropped up. A drainage swell by a manifold was considered a wetland, and to fill it in Broco had to find an area elsewhere to replace it. “I had to delineate and improve a 10,000square-foot area just off of our property as a wetland, and I was able to work with the city to make it happen,” Brown said. “It had been a tent city area with homeless people and it was littered with heroin needles, among other waste.” A public hearing was held for the delineation request. Brown presented a slide show illustrating the land’s terrible condition, which removed any opposition. “It’s really nice when I walk out today to the wetland and see what we created,” Brown said. “We planted specific plants that would be common in wetlands. It has wildlife, and it’s thriving in there. And it’s all grown the way it’s supposed to grow.” Brown said his experience with the wetlands taught him that the right attitude is essential to help overcome obstacles and regulatory challenges operators might face in such a project. “It’s really not as hard as everybody made it appear,” Brown said. “They said, ‘Stay away from wetlands. Don’t do this. Don’t do that.’ If I listened to all the naysayers, this terminal wouldn’t be what it is right now. I like to take on the challenge. It’s a can-do, mentality where you either find a way or you make one.” 44 | FMN Magazine SPRING 2025

The key to a successful relationship with local regulators and enforcement authorities is to let them know the economic value that you are bringing to the community and then work to make them a partner in the process from the earliest point, said Brown. “I always was very proactive with engaging the building department, the fire department, the conservation committee …,” said Brown. “I wanted their input so I could pre-plan and not have anybody caught off guard at a hearing and say, ‘We didn’t know you wanted to do this.’ I found that if you’re proactive like that, you give them the option to comment ahead of it going into a submission, you usually get what you want. You’ve checked all the boxes, and you’ve made them stakeholders.” Also, don’t sweat the small things in these hearings, said Brown. One regulator suggested some extra containment might be nice, even though it wasn’t a technical requirement in the code for double-walled tanks. “Why would I fight that? That is the easiest thing for us to do,” Brown said. “When we pour the concrete, we just form up a little quick lip. It made them happy, and it was a very low-cost item to add it to the project.” PUTTING THE TERMINAL TO WORK Once established, Brown expanded the terminal to meet some key developing needs throughout the region, specifically the demand for lower carbon heating oil (Bioheat), diesel fuel and propane. Today, the three-loading-bay terminal features 200,000 gallons of heating oil storage, 150,000 gallons of biofuel storage, 60,000 gallons of propane storage and 40,000 gallons of biodiesel storage. The expanded rail siding features over 1,000,000 gallons of railcar storage capacity. Broco Energy has a long-running relationship FuelsMarketNews.com

with Chevron’s REG for its biodiesel supply, which is used to create both on-road biodiesel blends and bio-blended heating oil and address a changing market. The Northeast heating oil industry set an ambitious goal with its 2019 Providence Resolution to reduce greenhouse gas emissions (GHGs) 15% by 2023—and it surpassed it with a nearly 26% reduction in greenhouse gas emissions through a combination of energy efficiency improvements and increased use of renewable fuels. “We’re not just a regular retailer selling customers heating oil. We have midstream power now. I want to make this the premier biodiesel terminal in the Northeast,” Brown said. The company currently wholesales B100 [Note to readers: the number after the B or RD represents the percentage of the alternative fuel] for those looking to blend and go through the RIN process or B99. It can offer blends anywhere in between. The city of Cambridge, Massachusetts, adopted biodiesel mandates in 2024 and Broco provides biodiesel that can be dispensed into its fleets. Broco also has supply contracts with the Commonwealth of Massachusetts and MWRA (Massachusetts Public Water and Wastewater Authority), and it just started a pilot program with Massport’s Logan Airport for renewable diesel. Additionally, Broco provides large-vessel fueling, construction fueling, emergency temperature heat and provides off-road diesel at the terminal. Broco’s heating oil customers are offered biodiesel blends from B10 to B99 as well as renewable diesel. The company also takes part in a National Oilheat Research Alliance (NORA) program that is testing blends of renewable diesel at 80% and 50% and biodiesel at 50% and 20%. On the propane side, Broco serves both home heating customers and about 7 million gallons on the wholesale side. “Propane was a tough business to get into,” said Brown. “You must have capital, and we’ve always worked on a ‘food-stamp’ budget. We started our propane from the rail side just bringing it in and learning how to handle the product. On the wholesale side I was able to negotiate a good rate, even though at the time it was very small gallons. Our retail propane side is growing quickly because we have economic advantages with direct access to rail.” LESSONS TO CARRY FORWARD Bobby Brown built Broco Energy from the ground up with the support of his wife and an excellent team he established as the business grew. He came into the business at a time of great change in the Northeast heating fuels market and saw an opportunity to make things happen. “We’re thriving in what was once seen as a dying industry because we saw the opportunity and implemented it,” said Brown. “The customers in the Northeast see that biodiesel or bioheat is a successful, clean—in more ways than one—and an economically viable product. There were hurdles to overcome, but you can’t be afraid to take a chance.” Keith Reid is editor-in-chief of Fuels Market News. He can be reached at kreid@fmnweb.com.

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FMN Magazine SPRING 2025 | 45

INDUSTRY NEWS NORTHWEST PUMP ACQUIRED BY H.I.G. CAPITAL

Northwest Pump (NWP), a provider of equipment and services to fueling and industrial customers on the West Coast, announced that it has been acquired by H.I.G. Capital, a global alternative investment firm with $66 billion of capital under management. Northwest Pump plans to keep all employees and the current leadership team in place.

PDI SELECTS VALIDIFI FOR PAY-BY-BANK ENROLLMENTS

ValidiFI, a provider of predictive bank account and payment intelligence, announced a technology integration with PDI Technologies, a global company in the convenience retail and petroleum wholesale ecosystem, to offer real-time bank account validation within its consumer enrollment process for the PDI Payments solutions. The integration will also include GasBuddy, a PDI company that is a fuel savings platform for North American drivers and consumers.

LEGACY MARKETS SELECTS PRICEADVANTAGE FUEL PRICING SOFTWARE

Legacy Markets followed its recent acquisition of 10 Triangle Stop convenience stores by selecting PriceAdvantage as its fuel pricing software platform. PriceAdvantage has provided support and system integrations to the fuel pricing industry for nearly two decades.

CAPITOL PETROLEUM GROUP SELECTS TITAN CLOUD

Titan Cloud, a provider of fuel asset optimization software, announced that Mid-Atlantic fuel retailer Capitol Petroleum Group (CPG) has selected it to modernize its fuel operations. By partnering with Titan Cloud, CPG seeks to streamline its delivery planning, improve inventory accuracy and drive revenue growth at its 226 locations.

RACETRAC TAPS GVR REMOTE MANAGEMENT SOLUTION

Vontier Corporation, a global provider of critical technologies and solutions to connect, manage and scale the mobility ecosystem, announced that RaceTrac has selected Vontier’s Invenco by GVR asset management cloud-based solution to remotely manage its forecourt assets, at its more than 800 stores representing the RaceTrac and RaceWay brands in 13 states. 46 | FMN Magazine SPRING 2025

D&H UNITED FUELING SOLUTIONS ACQUIRES HCN PETROLEUM EQUIPMENT

D&H United, a portfolio company of Wind Point Partners and a provider of installation, maintenance, testing and inspection services for fueling stations and electric vehicle charging infrastructure, announced the acquisition of HCN Petroleum Equipment. Based in Newland, North Carolina, HCN Petroleum Equipment is a turnkey petroleum service and equipment provider in North Carolina, Tennessee, Virginia and South Carolina. This acquisition continues D&H’s expansion in the Southeast, further enhancing its national service capabilities.

LOVE’S SELECTS GRAVITATE’S SUPPLY & DISPATCH SOLUTION

Gravitate announced that Love’s Travel Stops’ private truck fleet, Gemini Motor Transport, has selected and implemented its AI-powered supply and dispatch solution. Gemini delivers millions of gallons of fuel to Love’s stores and other locations in the industry annually, and the Gravitate supply and dispatch solution is expected to help the company manage supply, optimize fuel supply decisions, dispatch 1,300 trucks and provide new freight and quoting functionality.

DFS LAUNCHES DX REWARDS

Dover Fueling Solutions (DFS), a part of Dover Corporation and a global provider of advanced customer-focused technologies, services and solutions in the fuel and convenience retail industry, announced the launch of DX Rewards, a rewards and loyalty offering available through the DFS Anthem UX platform-based dispensers. DX Rewards, available in North America, is an online loyalty marketplace that integrates seamlessly with a retailer’s existing provider to expand their current program and offer a personalized, app-like experience at the pump.

FLEETPANDA AND MANSFIELD ENERGY PARTNER

FleetPanda, the petroleum dispatch platform, announced a strategic partnership with Mansfield Energy, one of the nation’s largest energy suppliers and logistics providers. This collaboration brings together FleetPanda’s dispatch technology with Mansfield Energy’s network of over 1,500 fuel distributors.

BP INTRODUCES EARNIFY APP

BP announced the launch of Earnify, an app designed to deliver a seamless, integrated and FuelsMarketNews.com

rewarding experience for users, both at the pump and in-store at BP and Amoco locations. Users earn 1 point per $1 spent on fuel and 2 points per $1 spent on other in-store items, along with an always-on 5¢ per gallon savings on fuel purchases.

KALIBRATE ACQUIRES IMST CORP.

Kalibrate, a global insights firm providing software and services relating to location analytics and fuel pricing, announced the acquisition of IMST Corp., an independent market research firm specializing in site selection, analysis and sales forecasting for convenience stores and fuel stations. IMST serves thousands of convenience and fuel operators across the U.S. with reports and projections for fuel volume, convenience store sales, car wash, QSR, truck stop and travel center developments.

SPATCO ACQUIRES UST SERVICES CORPORATION

SPATCO Energy Solutions, a provider of infrastructure services and innovative turnkey solutions for the petroleum, diesel exhaust

OUR ADVERTISERS

fluid (DEF), environmental and electric vehicle (EV) markets, announced the acquisition of UST Services Corporation, significantly enhances SPATCO’s footprint in the Maryland, Virginia and Delaware markets. UST Services Corporation provides comprehensive petroleum contracting services that include tank installation and removal, service and maintenance, environmental compliance and precision testing.

MAKO NETWORKS LAUNCHES SMARTATG

Mako Networks, which offers secure cloud-managed networks for distributed enterprises, announced the launch of the Mako SmartATG automated tank gauge (ATG) Interrogator. SmartATG, a new feature within the Mako central management system (CMS), enables fuel retailers to remotely interrogate ATGs without the need for firewall pinholes, virtual private networks or additional hardware. The Mako secure edge device queries ATGs directly at a user-specified frequency and displays the data in the Mako CMS or streams it to any system that supports webhooks, whether on-premises, in the data center or in the cloud.

Thank you to these advertisers who have demonstrated their support of the fuels industry by investing in Fuels Market News.

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FMN Magazine SPRING 2025 | 47

REMEMBER THIS?

When Bottom Loading Tanker Trucks Became “A Thing” BY KEITH REID

ottom loading fuel tanker trucks at the terminal or bulk plant is now so common it is almost ubiquitous today. But that wasn’t always the case. Seventy-three years ago, the February 13, 1952, issue of National Petroleum News (NPN) magazine highlighted the point at which bottom loading became a proven technology in the article, “Bottom Loading of Oil Tank Trucks.” As the magazine’s Midwest editor Leonard Castlet noted, “…bottom loading as now developed represents a revolutionary improvement over present loading methods.” The article reported on a test by Standard Oil Co. (Indiana) at its Rochelle, Illinois, pipeline terminal. The company had recently built a state-of-the-art fueling terminal, which operated efficiently until a new, larger transport truck entered service that required a complete reworking of the loading dock platform. This provided an opportunity to explore a new approach that would not only minimize similar future issues but also solve a variety of challenges related to top loading. The extensive testing process ran from 1950-1951 though the range of seasons with some extreme weather. The system proved to be highly successful with only a few minor bugs still to be worked out.

While both top and bottom loading manage to fill a tank, bottom loading had some significant potential advantages. From the article: Advantages—Bottom loading can achieve these benefits: 1. Installation costs are much less because no superstructure—no rack is necessary. This factor is of even greater importance during a period of war mobilization because of the considerable saving in materials. [Note, the Korean War was ongoing at the time.] 2. Safety conditions are vastly improved for truck drivers and terminal employees. In fact, when the system finally is perfected, loading rack accidents hazards will be all but eliminated because no one ever should have to leave the to mount the dock or scale a transport truck. 3. Vapor losses during loading are cut to the irreducible minimum. 4. Ground space is conserved, and trucks have more flexibility in parking than at the conventional loading rack where they must fit into a limited, specified space. 5. Increased loading facilities can be added without making existing facilities obsolete. A significant, universal changeover to a long-established way of doing business

can be a considerable undertaking for an industry. But the benefits from bottom loading were obvious and tangible. On the financial side, the capital conversion costs were balanced against the long-term savings potential with new construction and upgrades. As the article noted: “Indiana Standard was unable to say in dollars and cents what the financial savings would be on the installation of bottom loading as compared with the construction of a conventional loading rack. It was pointed out, however, that a major investment is required to change the capacity of a conventional dock within the pumping limitations. But to add new bottom loading facilities, all that is needed is a ‘T’ off the product line, so as long as the pumping capacity is behind it, adding new loading facilities is just like plugging in on a water main for a new house.” The big financial savings came with the elimination of the rack superstructure, although the required valve for bottom loading was typically less expensive than the conventional counterweighted top loading device. The cost of equipping a truck or transport with the needed loading nozzle adapter for bottom loading was small, an estimated $40 to $50 (equivalent to $480 to $600 today). Top loading has not completely disappeared. It is still common in many chemical applications and in petroleum fueling applications in some regions of the world. In the United States, top loading fuels can still be found with rail applications and some tank wagon applications (home heating oil and wet hosing delivery trucks, for example)— but even in those cases bottom loading options exist as well. Keith Reid is editorin-chief of Fuels Market News. He can be reached at kreid@fmnweb.com.

For more than 100 years, from its founding in 1909 to when it went out of business in 2013, National Petroleum News (NPN) documented the rise of petroleum marketing and retailing in the United States. NACS, PEI and The Fuels Institute have catalogued the rich history of NPN in its entirety. Each issue of Fuels Market News will look back at the history of our vibrant industry, through the eyes of NPN, to see how it reflect the issues, challenges and opportunities we face today.

48 | FMN Magazine SPRING 2025

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