The fuel business is full of roles that sound similar and mean different things. A dealer is the one closest to the driver: the operator of the station where fuel actually gets sold to the public. Knowing where the dealer sits, and how they differ from jobbers and agents, makes the whole chain clearer.
What a dealer is
A fuel dealer operates a station that sells fuel to the public, buying that fuel from a jobber or directly from a major. The dealer owns or operates the retail site, sets the pump price within their supply arrangement, and earns the spread between cost and what they charge. They are the retail end of the chain.
Dealer vs jobber
A jobber is the wholesaler, buying at the terminal rack and distributing to stations and businesses. A dealer is the retailer selling at the pump. One jobber often supplies many dealers. The clean way to remember it: the jobber moves fuel to the station, the dealer sells it from the station.
Dealer vs commissioned agent
This is the distinction people mix up most. A dealer buys the fuel and takes both the margin and the risk; they own the fuel and the pricing. A commissioned agent runs a station they do not own and is paid a commission by the jobber, who keeps the fuel and the pricing. A dealer is in business for themselves; an agent operates on the jobber's behalf.
How a dealer makes money
A dealer earns the fuel margin: the gap between delivered cost and pump price. NACS data puts the gross margin on fuel in the range of 35 to 38 cents a gallon in recent years, before card fees and operating costs take most of it. Margins move with the market, so confirm current figures for your region. The inside store usually matters more. NACS reports that fuel brings in roughly two-thirds of a typical convenience store's sales dollars but less than 40 percent of its gross profit, which is why a dealer's livelihood leans on coffee, foodservice, and the basket.
Many are both
Plenty of operators are jobber and dealer at once, wholesaling fuel and owning retail stations, capturing margin at both stages. That mixed model is common, and it is one reason a back office has to handle wholesale and retail cleanly together. FastDragon runs both sides in one system, with the wholesale and c-store pieces switched on to match how you actually run.
Frequently asked
Does a fuel dealer set their own gas prices?
Yes. The street price at the pump is the dealer's call. The supply agreement controls what the dealer pays, often a dealer tankwagon (DTW) price or rack plus freight plus the jobber's markup, and a branded contract adds image and operating standards. Within those terms, the dealer decides what the sign says.
How is a dealer different from a jobber?
By where they sit in the chain and what they own. A jobber owns trucks, terminal relationships, and wholesale customer accounts; a dealer owns or leases a forecourt and a store. The jobber's customer is the dealer. The dealer's customer is the driver at the pump.
How is a dealer different from a commissioned agent?
Title. Fuel in the ground at a dealer site belongs to the dealer, who bought it on credit terms and carries the price risk if the market moves. At an agent site the fuel stays the jobber's property, and the operator earns a fixed cents-per-gallon commission, so a price spike or crash lands on the jobber instead.
How does a fuel dealer make money?
Two ways: pennies per gallon on fuel and a much fatter percentage inside the store. After card fees and operating costs, the net on a gallon is small, which is why coffee, foodservice, and the snack aisle carry many stations. A dealer who watches only the fuel number is reading the wrong report.
Can a business be both a jobber and a dealer?
Yes, and plenty are. A typical pattern is a jobber who keeps a handful of its best retail sites and wholesales to everyone else. The two sides run separate books: wholesale tracks loads and customer pricing, retail tracks daily station close-outs, and the operator earns margin at each step of the chain.