7-Eleven made $349 million from surge in gasoline prices in the U.S. last quarter

By Steve Goldstein

The surge in gas prices accounted for half of Japanese company Seven & I's profits last quarter.

Convenience store operator 7-Eleven on Thursday disclosed a $349 million profit from the surge in gasoline prices during the last quarter, even as fewer Americans filled their tanks.

The disclosure of the profit came from Japanese parent company's Seven & I's (JP:3382) latest results, with that surge in prices accounting for roughly half the 105 billion yen ($650 million) operating profit the entire company made during the first quarter ending May 31, a phase spanning nearly all of the period after the U.S. and Israel first attacked Iran.

As prices rose, 7-Eleven said it sold 8.8% less in gasoline by volume, but its fuel margin jumped 16.2%.

The issue of the retail cost of gasoline is a hot one politically. The Justice Department last week called on states to investigate whether gasoline prices are kept artificially high.

The National Association of Convenience Stores, of which 7-Eleven is a member, says that gross margins, typically about 38 cents per gallon, contract during periods of rapidly increasing wholesale costs.

According to AAA, the national average price is $3.84 per gallon, below the peak of $4.56 on May 21, but well above where prices were before the start of the U.S.-Iran war.

Crude-oil futures (CL00) on Thursday traded below $73 per barrel, after reaching as high as $119.49 in the early days of the conflict. Gasoline futures (RB00) were trading at $3.07 per gallon.

-Steve Goldstein

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07-09-26 0439ET