AI is rapidly becoming the next big thing in technology— but what can it actually do for you?
RETAIL OPERATIONS
The future of sump testing is in better practices, better data and better-trained people.
Here are a few tips to help make the most of the NACS Show.
Fueling system equipment longevity starts at product installation with parts that simplify testing and repairs.
Maximize Your Car Wash Marketing
How you can stand out to customers who think all washes are the same.
Small retailers can find multiple benefits from investing in dispenser technology.
Current market conditions present questions about the future.
COMMERCIAL FUELS
Reducing Carbon in Fleet Operations
TEI provides critical resources for fleets looking to reduce their carbon emissions.
FUEL MARKETERS
VP Racing Fuels is celebrating its 50th year as a lifestyle brand for the performance-minded customer.
Many consumers still back environmental goals, but high costs are eroding that support.
‘If you don’t know where you are going, you’ll end up someplace else.’
Are We Really Ready for AI?
In this issue we look at artificial intelligence (AI), specifically how it is applied to business solutions in our industry. It truly has the potential to be revolutionary through the type of business intelligence and the operational support it can deliver. However, it’s also important to look at AI more broadly and address some of the concerns that go with it. I’m not talking about the fears that AI will “get out of the box” and eventually decide to eliminate their human minders by 2030, as one recent article suggested. That would require enormous stupidity and a complete lack of foresight or an actual suicidal drive. But, most importantly, the timeframe was a bit too ambitious, so make that 2050 instead of 2030. Just kidding … What is disturbing to me today is the ability of easily accessible AI applications to generate digital content that is rapidly approaching photo and audio realism. For several years now I’ve been entertained on YouTube by an earlier generation of AI that can, for example, take the cast of “Star Wars” and transfer them to Cold War communist North Korea with a full musical score in Korean that is instrumented, culturally accurate and highly amusing. However, these earlier efforts still had some noticeable video artifacts and were a bit unsettling as they had a definite alien vibe about them, almost at the subconscious level.
Today, the quality of the AI-generated product has improved to such a level that the telltale artifacts have disappeared—along with that subtle but formerly obvious alien unease. And that makes things interesting in some disturbing ways.
The latest amusing crossovers— like Luke Skywalker playing electric guitar in a Vietnam War-era jungle camp straight out of “Apocalypse Now”—are so good your smile fades. And these are being done by ordinary folks using tools commonly available with a paid subscription. How long is it before you can’t tell if the actor, singer, politician or journalist is real or if it’s amazing propaganda? That’s been a concern about AI for some time, but we are starting to get to the point where that reality is knocking on the door. For all the discussion and debate and meetings and thought leadership pieces—are we ready?
A casual discussion with our publishing staff brought this global, philosophical concern much closer to home. NACS Vice President Jeff Lenard commented that in our convenience retail world, this increasingly accessible technology could allow someone to destroy your business reputation. Your imagination is the limit for the ways in which this could be misused by a disgruntled employee or a competitor. And while digital forensics might be able to determine it is artificial, as Mark Twain is ironically miscredited with writing, “A lie can travel halfway around the world and back again while the truth is still lacing up its boots.”
Keith Reid is the editor-in-chief of Fuels Market News. He can be reached at kreid@fmnweb.com.
EDITORIAL
Keith Reid Editor-in-Chief (847) 630-4760; kreid@fmnweb.com
Jeff Lenard VP of NACS Media & Strategic Communications (703) 518-4272; jlenard@convenience.org
Leah Ash Editor/Writer lash@convenience.org
CONTRIBUTORS
Shay Baig, Eric Brevard, John Eichberger, Ed Kammerer, John Kimmel, Joe O’Brien, Allen Schaeffer, Roy Strasburger, Karen Turner
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, head of guest experience, BP; 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; 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.
Subscription Requests: circulation@fmnweb.com
POSTMASTER: Send address changes to Fuels Market News Magazine, 1600 Duke Street, Alexandria, VA, 22314-2792 USA.
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President and CEO
Frank Gleeson, former president and CEO of Aramark Northern Europe, will lead NACS beginning January 1, 2026.
On January 1, 2026, Frank Gleeson will take the helm as the new president and CEO of NACS, succeeding Henry Armour, who will lead the international efforts of NACS after 20 years as president and CEO.
Gleeson is the former president and CEO of Aramark Northern Europe and was the 2018-2019 NACS chairman of the board. He has held numerous retail roles and board positions throughout his career. He will be the fourth CEO in the 64-year history of NACS.
“I am honored to follow the successes of Henry Armour and excited to lead NACS, which has a
stellar reputation both in the United States and around the world. Henry has been a driving force behind making NACS into a truly global organization with members in over 50 countries, as well as developing its executive education offer, its leadership in moving the industry forward with new technology solutions like TruAge® and THRIVR, and its advocacy on issues critical to our industry. I look forward to building upon these successes and the great culture that Henry has led at NACS and throughout the industry,” said Gleeson.
Gleeson has deep experience in foodservice and convenience retailing.
As president and CEO of Aramark Northern Europe from 2017 to 2024, he oversaw a team of over 20,000 employees across 2,800-plus locations in the United Kingdom, Ireland and EMEA (Europe, the Middle East and Africa), which served an estimated 1 million meals a day. Prior to Aramark, Gleeson was retail director at Topaz Energy Group, the largest importer, distributor and retailer of transportation fuel in Ireland with over 330 convenience stores and service stations, 60 distribution depots and
four import terminals. He also served as vice president of retail at Statoil Ireland (now Equinor), where he led the development of the first American-style convenience store in Ireland. Most recently, he served as chairman of the National Oil Reserve Agency in Ireland.
Armour has served as NACS president and CEO since July 2005. Following his tenure as CEO, Armour will provide support to Gleeson and continue to lead international activities at NACS for several years.
“For all of my career, I have considered myself a convenience retailer—not an association executive—and that means constantly listening to the customer and responding to their unmet needs.
I’m proud of what we have built at NACS over the past two decades through aggressive advocacy and strong financial management. We have shown that by creating and constantly nurturing a positive culture we can accomplish extraordinary things together. I’m committed to turning over the best team and resources possible to Frank and continuing to support the organization over the coming years,” said Armour.
What’s new in the industry? What are the current trends?
The NACS Convenience Matters podcast answers these questions every week. Podcast guests range from global leaders to retail and fueling experts, to celebrities and convenience store fanatics.
The Convenience Matters podcast recently published its 500th episode so there are a lot of great options from which to choose. Here are two recent fuels-related episodes:
• Why Consumers Choose Your C-Store for Fuel (Episode 508): Gas prices continue to be top of mind with drivers, but the price per gallon is only one factor for why they select a place to purchase fuel.
• New Insights on Driving Behaviors and Perceptions (Episode 505): A new Transportation Energy Institute report reveals what consumers think about the vehicle technologies and fueling options they’re looking for.
Calendar of Events
NOVEMBER
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
JANUARY
Conexxus Annual Conference
January 25-29 Arlington, TX
FEBRUARY
NACS Leadership Forum
February 10-12 Miami, FL
MARCH
NACS Convenience Summit Asia March 10-12 Shanghai, China
NACS Human Resources Forum
March 16-18 Louisville, KY
NACS Day on the Hill
March 17-18 Washington, D.C.
Supporting Decarbonizing Commercial Fleets
Reducing carbon emissions with medium- and heavy-duty vehicles poses more challenges than in the light-duty sector.
BY JOHN EICHBERGER
Medium- and heavy-duty vehicles are not simply larger passenger vehicles—they are unique and serve critical functions throughout the economy. These larger, mostly commercial vehicles operate in a wide variety of duty cycles and conditions that are far different from a typical family’s cross-over utility vehicle and deserve special considerations when examining the future of transportation.
This is why the Transportation Energy Institute (TEI) operates a MediumHeavy Duty Vehicle Committee comprised of contributor organizations who understand, operate and provide energy to this sector of the market. Most recently, the Committee oversaw publication of the “Practical Guide to Cost Effective Fleet Emissions Reductions.”
The objective of reducing emissions from the transportation sector is not going away, but there is currently a renewed focus on the economics behind the strategies
that will enable such reductions. For fleet managers, this focus on the return on investment has always been present and naturally crosses over when tied with regulatory requirements.
WHAT TEI HAS DONE SO FAR
In the past, policy designed to reduce emissions from the commercial vehicle sector was drafted with a clear lack of understanding of the complexity and overall economic importance of the sector, something that TEI
members said was important to address. TEI published its first paper specifically targeting this market in 2022: “The Easiest and Hardest Commercial Vehicles to Decarbonize.” This report examined 17 different vehicle segments, each with their own unique attributes, and evaluated key factors for each one that could affect efforts to reduce emissions. It clearly demonstrated that a one-size-fits-all approach would be a colossal failure. A second TEI report on the topic, “Policy Considerations: Emissions Reduction Proposals Affecting Medium and Heavy-Duty Vehicles,” identified the key topics that should be considered when examining regulations to reducing emissions from commercial vehicles.
For example, it’s essential to consider the work-rate of the current vehicleenergy combination and whether the alternative would enable the vehicle to perform the same amount of work in the same amount of time. If not, the result would likely require the deployment of additional vehicles, which would negatively affect the fleet’s economics (and ultimately be passed along to customers) and add to vehicle congestion.
NEW RESOURCES
TEI’s latest project extends this work and includes a written guide to help fleet managers most effectively evaluate their options. A version specifically focused on the Canadian market was published at the end of 2024 by our Canadian Transportation Council. The guide explores the technology and fuel options operators can select, details the application and availability, considers the opportunities and challenges associated with each and provides a roadmap that managers can follow as they determine their path forward. It is a terrific tool to help companies really understand their options.
Paired with this guide is an online calculator that allows users to customize scenarios to determine anticipated costs and emissions benefits of different options. Users can select the state in which they operate, the type of vehicle and use cases of their fleet—and then assess the impact of switching powertrains or energy used for their operations. Duty cycles and financial information are prepopulated and can be adjusted to reflect real world data to provide a truly customized result.
Let me give you one example using the online calculator. We looked at the 10-year cost impact of several conversion of inputs (fuel cost, miles driven, cost of vehicles, financing and insurance terms, etc.) and the emissions effect of scenarios.
Where the costs of the alternative being modeled are higher than the legacy vehicle and fuel choice, the calculator showed what the cost per ton of CO 2 avoided might be. This can help fleet managers evaluate their options relative to any type of carbon credit that might exist in the market, from a regulatory program or even a voluntary carbon credit trading platform.
This tool has been previewed with fleet managers and has been well received. It is available free of charge through the TEI website.
TRACKING AND REPORTING EMISSIONS
TEI has also developed the Carbon Avoidance Tracker, a subscriptionbased tool that enables fuel providers and fleet managers to calculate and report their actual emissions reductions. The tracker provides credible and verifiable data and uses the Argonne National Laboratory’s GREET model. It is designed to help industry stakeholders share with their customers or financial partners their progress in reducing emissions.
As the trucking industry often says, “Without trucks America stops.” And while medium- and heavy-duty vehicles represent a small share of the overall number of vehicles on the road, they are responsible for a significant share of transportationrelated emissions. Finding ways to reduce emissions while providing a positive (or at least acceptable) return on investment is essential to support this segment of the market.
TEI’s Medium-Heavy Duty Vehicle Committee will continue to evaluate the market and develop resources to help fleet managers and their energy providers discover innovative and cost-effective ways to reduce emissions.
The objective of reducing emissions from the transportation sector is not going away, but there is currently a renewed focus on the economics behind the strategies that will enable such reductions.
John
Eichberger is the executive director of the Transportation Energy Institute.
High-Octane Horizons: Is It Premium Fuel’s Time to Shine?
Automakers are increasingly requiring premium fuels for their new models.
BY JOE O’BRIEN
Automakers are increasingly requiring premium fuel for their new models, which could have significant implications for fuel retailers. Previously reserved for luxury brands and sports cars, premium fuel requirements now extend to many popular mainstream vehicles.
HOW WE GOT HERE
Ambitious fuel economy and emissions standards combined with the challenge of delivering the
horsepower and responsiveness that consumers expect have compelled manufacturers to develop sophisticated engine technologies. Turbocharging, supercharging and high compression ratios are now fundamental to powering modern-day engines.
These higher compression engines squeeze more power from a smaller displacement, but there is a caveat: The use of lower-octane fuel in these sophisticated engines results in engine knock, which occurs when the fuel-air
mixture ignites prematurely. Fueling the engine with high-octane gasoline (91 octane or higher) helps ensure the engine fires correctly.
Premium gasoline was recommended or required for just 7% of new vehicles in 1985, according to the Department of Energy. Fast-forward 38 years, and manufacturers recommend premium for most light-duty vehicles. For model year 2023, manufacturers recommended or required 53% of new vehicle configurations to run on premium
For model year 2023, manufacturers recommended or required 53 % of new vehicle configurations to run on premium gasoline .
gasoline. Mainstream vehicle models, including the Honda Civic, Hyundai Elantra, Chevrolet Silverado and Toyota Tundra were on the list of 2024 models requiring premium-grade gasoline.
A TROUBLING DISCREPANCY EMERGES
Although premium and midgrade fuel sales have increased (up around 2.5% from 2023 to 2024, per Upside data), they don’t fully align with new car sales. Regular gasoline still accounts for approximately 73% of all fuel sold. This disparity suggests that some drivers of vehicles requiring premium gasoline may be choosing regular unleaded instead.
Drivers may be unaware that their car requires high-octane gasoline if the dealership failed to mention it, they didn’t read their car manual or they overlooked instructions that may be posted on the vehicle’s gas cap. They may also be intentionally disregarding the requirement to avoid paying for higher-priced premium.
Using regular 87-octane gasoline in a vehicle designed for premium can result in reduced engine performance and responsiveness, as well as potential engine damage severe enough to cause a catastrophic failure. Modern computer and sensor systems can minimize the damage concerns, especially for newer vehicles, but the loss in economy and performance remains and consistently using a loweroctane fuel may void a warranty.
PONDERING PREMIUM’S FUTURE
Looking ahead, fuel marketers face both challenges and opportunities regarding the sale of premium fuel.
With the prospect of less stringent tailpipe emission rules and fuel economy standards taking effect, it is plausible that automakers will slow their investments in advanced engine technologies over the coming years. With manufacturers planning their product line-ups years in advance, a shift will not be instantaneous. In addition, priorities have wildly shifted over the past few administrations, creating uncertainty for car manufacturers who may choose to retain some of their established technologies to avoid reinventing their line-up four years from now. How manufacturers shape their future product line-ups will be a strong indicator of the long-term outlook for premium.
Interestingly, a rollback to 2020 standards could result in consumers paying $8,000 more to fuel a lessefficient new vehicle model in 2029, according to a Consumer Reports senior policy analyst, which creates a favorable sales environment for c-store operators. Because fuel retailers generally compete on the price of regular gasoline, maintaining a higher profit margin on premium fuel can help offset lower-margin sales of regular unleaded. If demand for premium fuel increases substantially in the coming years, it may disrupt long-established pricing strategies.
Regardless of what the future holds for premium fuel pricing, c-stores have an immediate win-win opportunity in front of them. If owners of new model cars are unknowingly putting the incorrect grade of fuel in their car, educating them about it at the fuel dispenser will pay off in two ways. First, a customer who is appropriately informed about the damage they could be doing to their automobile by putting a lower grade of fuel in it will probably be more motivated to choose
higher-margin premium. Secondly, they will likely be grateful for their newfound awareness, which could boost loyalty to that c-store.
With interactive touchscreen dispensers becoming more commonplace, presenting customers with a digital tool that lets them look up what kind of fuel could/should go in their vehicle is definitely within the realm of possibility. If done correctly, it could promote proper fueling while also boosting sales of premium and higher ethanol blends.
Regardless of what the future holds for premium fuel pricing, c-stores have an immediate win-win opportunity in front of them.
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.
Underground Storage Tank Testing
The future of sump testing is in better practices, better data and better-trained people.
BY ERIC BREVARD
The intersection of regulatory adherence and operational reliability is increasingly under scrutiny in today’s compliancedriven fuel storage industry. While many owners and operators focus on leak detection, corrosion prevention and software tracking, one overlooked area continues to pose risk: secondary containment integrity, particularly in tank sumps and dispenser sumps.
Underground storage tank (UST) regulations enforced by the U.S.
Environmental Protection Agency (EPA) and adopted across many states mandate containment testing, yet field execution varies widely. Let’s look at key trends, common pain points and best practices for maintaining sump integrity and operational uptime, with an emphasis on efficient, repeatable testing protocols.
In 1988, the EPA established comprehensive regulations for underground storage tanks (USTs) containing petroleum or hazardous
Even when sump testing is performed on schedule, the lack of standardization introduces risk.
Proper training, ideally standardized through manufacturer-backed programs, ensures every technician approaches the test with consistent expectations and execution.
substances. These regulations address technical requirements, financial responsibility and State Program Approval (SPA). The regulations aim to prevent releases, detect leaks and ensure proper cleanup of UST systems.
In 2015, the EPA updated its UST regulations in a few significant areas. These focused primarily on the improved prevention and detection of leaks and enhancing operational standards. Key changes include secondary containment requirements for new and replaced tanks, operator training, periodic operation and maintenance and ensuring compatibility with biofuel blends. These 2015 regulations also removed deferrals for certain types of USTs, such as emergency generator tanks, and updated referenced codes of practice.
For example, owners and operators are required to install under-dispenser containment for all new dispenser systems. Once installed, owners and operators test every three years for liquid tightness or use a double-walled containment sump with periodic interstitial monitoring. The goal is to ensure that leaks will be caught before reaching the environment.
By 2018, compliance became mandatory nationwide. However, many operators still struggle with cost-effective, consistent compliance, especially across multiple locations or contracted technicians.
At the heart of the issue is not just the regulation itself, but the operational burden it created. Testing methods often vary based on technician interpretation, weather
conditions or site readiness. Sump testing, especially under vacuum or hydrostatic methods, can become labor-intensive, requiring frequent re-tests, unnecessary downtime or premature component replacement.
THE HIDDEN COSTS OF INCONSISTENCY
Even when sump testing is performed on schedule, the lack of standardization introduces risk. Field data shows significant variability in testing results due to:
These inconsistencies not only put operators at risk of noncompliance during inspections, but they also increase operational costs. Failed tests often lead to component replacements that might not be necessary if reliable testing methodologies were used.
BEST PRACTICES FOR CONTAINMENT SUMP TESTING
To reduce both risk and operational cost, industry experts increasingly advocate for a few key best practices:
• Standardized testing protocols. Developing a clear, reproducible method that can be used across facilities and technicians minimizes variance. Vacuum-based testing methods, for example, offer more control and speed than
hydrostatic alternatives when correctly implemented.
• Technician training and certification. Proper training, ideally standardized through manufacturer-backed programs, ensures every technician approaches the test with consistent expectations and execution. Digital training modules, technician certification and refresher courses can dramatically improve test success rates.
• Integrated testing equipment. Field-deployable testing systems that integrate vacuum pumps, leak sensors, timers and documentation software reduce the margin for errors. They also cut down technician fatigue and site disruption.
• Data-driven documentation. Operators should maintain accurate manual records. These documents support audit requests, identify longterm trends and ensure that compliance history is traceable.
TECHNOLOGY TRENDS DRIVING THE NEXT EVOLUTION
Automation and modularity are changing the game in the sump testing world. Some forward-thinking systems now include:
• Modular test units deployable by a single technician
The future of containment testing lies in empowering the technician without compromising the integrity of the result.
RETAIL OPERATIONS
• Cloud-based test result archiving for long-term compliance and auditing
• Built-in safety to prevent overvacuum damage
• Some testing methods use media other than water to avoid compatibility and corrosion concerns.
The future of containment testing lies in empowering the technician without compromising the integrity of the result.
THE ROLE OF MANUFACTURERS AND OPERATORS
Manufacturers must take the lead in offering robust, test-verified solutions. But more importantly, operators— especially those with multiple locations—should demand systems that can be deployed uniformly. In our own field experience, we’ve
seen that the most successful programs are those that combine equipment, training and data capture into a single ecosystem. Dri-sump, for example, is designed as a modular, technicianoperated vacuum test system that enables consistent results without requiring site shutdown or water use.
It’s important to note that regulatory compliance is the floor, not the ceiling. As the fuel storage industry continues to evolve, the challenge is no longer to just pass an inspection—it’s building a repeatable, low-disruption system that minimizes cost, maximizes safety and preserves uptime.
The future of sump testing isn’t just in better tools, it’s in better practices, better data and better-trained people. Operators who prioritize those elements will not only meet federal and state mandates but also improve operational ROI.
the creators of the Dri-sump testing system. It emphasizes technician control, repeatability and environmental responsibility.
Eric Brevard is vice president of Accent Environmental Services Inc.,
It’s Show Time!
A few tips to help make the most of the NACS Show.
BY ROY STRASBURGER
When I oversaw store operations, I was always faced with a handful of issues that had multiple options on how to resolve. The questions ranged from every day to existential: How can I schedule staff more efficiently? Is there a way to cut the cost of my electricity bill? What are the latest trends, new products and services that I can offer to my customer? My freezer isn’t holding temp—what is the best one on the market? Do I need to put in
an EV charger? Is there a better way of doing what I am currently doing? I always had so many questions—but few answers. Yes, some answers could be found through research—whether print or online—but neither was entirely satisfactory because there wasn’t a great mechanism to have in-depth conversations or to see it in person.
Essentially, I was so caught up in the day-to-day challenges of running a business that I couldn’t get a glimpse of
the big picture.
What if there was a place to find the answers to your questions and, at the same time, be in the company of people who are willing to share information and advice to help your business? You’re in luck! That place is the NACS Show. Think of the NACS Show as the Google of the convenience industry, but with snacks.
The NACS Show, October 14-17 in Chicago, is a one-stop shop for all the information you need to maximize
your business opportunities. I’ve attended the NACS Show for over 40 years as both a retailer and an exhibitor. I’ve never left the NACS Show without picking up at least one, and usually several, ideas and suggestions for improving our company’s profitability or efficiency.
In addition to finding new ideas on the expo floor—and talking to people who can help you implement them, there are 50-plus education sessions to learn from fellow retailers, on topics ranging from operations, AI, theft reduction, food service safety, employee training and data analysis— just to name a few subjects.
Here is what you need to do to maximize your experience:
• Register now (if you haven’t already)!
• Think about your business and come up with at least ten questions or issues that, if you solved them, would make your business better and your life easier. (You can do a few more questions, but be sure that you stay focused on your big challenges.)
• Review the two main pieces of information that NACS will provide you—a list of exhibitors and the education session schedule. Make a list, in order of priority, of:
– The manufacturers/suppliers you need to visit to discuss a solution to your issues. (Pro tip: If you are looking for equipment or technology, make a note of
the dimensions or requirements that you need to meet so that you can ask specific questions.)
– The educational sessions that will answer your questions or provide you with the information that you need. (Pro tip: Have a list of specific questions you want answered and, if the session does not provide the answer, ask the presenters either during the Q&A or after the session. The great thing about NACS is that the speakers are very accessible.)
• Bring an open mind. On the expo floor and in the sessions, look for things you are unfamiliar with and learn more about them. A good place to start is with technology, AI, EV and foodservice innovations. These are the areas that will keep your business relevant in the future.
• Pack a bag that you can carry with you on the expo floor and to the sessions to store your educational handouts and product brochures (and maybe a few snacks). If you don’t have one, find one from an exhibitor providing them.
• Pick a method of taking notes and jotting down information that you can follow up with when you return home.
• Pack plenty of business cards with the correct email address and phone number.
• Make sure that you have a comfortable pair of walking shoes.
While the expo and education sessions are helpful, the real benefit comes from the time in and around the NACS Show when you have the chance to meet your peers. Attend all the receptions and after-hours events that you can. This isn’t just about networking (which to me puts the emphasis on career advancement); it is about building a community. It is about sharing
experiences, challenges, opportunities and ideas with people who understand what you are doing and face the same reality as you do. It’s knowing who you can call when you have challenges in the future.
I felt so strongly about the convenience community that I got involved with NACS organization and eventually was elected NACS Vice Chairman for Industry Relations. Get involved and engaged; it’s time well spent. And the first step in that process is going to the NACS Show.
Plus, it’s a lot more fun than sitting at a computer looking for answers.
Think of the NACS Show as the Google of the convenience industry, but with snacks.
Roy Strasburger is the CEO of StrasGlobal, which provides retail consulting services, the licensable Quix brand and Compliance Safe, a cloud-based 24/7 document management and storage platform. He also is a co-founder of the Vision Group Network.
RETAIL OPERATIONS
Built for the Field
Fueling system equipment longevity starts at product installation with parts that simplify testing and repairs.
BY ED KAMMERER
Equipment longevity is a major driver of total cost of ownership (TCO) for fuel retailers. The longer your fueling system equipment successfully operates, the more value you get out of it. However, many station operators underestimate the impact that service efficiency has on TCO.
Testing and routine maintenance is essential, yet they create downtime until they are completed. The way fueling system equipment is engineered directly influences how quickly inspections, servicing and repairs can be completed. The long-term consequences of poorly performing equipment can negatively impact brand loyalty and exacerbate customer dissatisfaction.
As such, fuel retailers should ask their equipment supplier these two questions when choosing new fueling system components:
1. How does the equipment simplify or reduce testing, maintenance and repairs?
2. What design features simplify installation or eliminate the need for add itional components? The answers to those questions can provide significant value to fuel marketers.
UNDERGROUND DOESN’T ALWAYS MEAN INACCESSIBLE
The ease of access to underground parts for testing, maintenance, replacement and repairs can impact TCO and downtime.
Equipment engineered to be quickly and easily installed saves time and helps reduce labor costs.
For example, overfill prevention valve testing frequently takes longer than necessary due to a lack of servicefocused features on the overfill valve. Most basic overfill prevention valves require the inspector or technician to remove the tank-top hardware, break vapor-tight seals and remove the valve from the tank to test it—and then reconfigure the system after testing. Advanced overfill prevention valves simplify the process by allowing the valve to be tested without removing it from the tank. This capability significantly reduces the time needed to validate the valve’s functionality. What may take an hour for a traditional overfill valve can be reduced to minutes for a valve that does not require removal and reinstallation.
At a minimum, overfill prevention valves need to be tested at start-up to confirm they pass code requirements. However, fuel retailers with strong preventative maintenance programs go beyond that, voluntarily testing equipment as part of a predetermined maintenance schedule. In addition, many regulations now call for prescribed testing schedules of these valves to remain compliant. With more frequent tests and maintenance, efficiency is critical. Testing valves with in-situ service capabilities for three tanks could only take 15 minutes, compared to three hours to test valves that need to be removed.
The time savings produced by a “service in place” valve reduces forecourt downtime and hourly charges for testing. Multiply those savings over the lifetime of the equipment, and the cumulative reduction in technician hours, system downtime and maintenance overhead significantly optimizes TCO.
WHEN MAINTENANCE MEANS JACKHAMMERS
There is nothing every seasoned fuel retailer dreads more than hearing, “Break concrete, dig, excavate and remediate.”
Any instance where concrete needs to be demolished and replaced to access underground parts inflates costs, prolongs downtime and disrupts fueling on the forecourt. The time and financial costs to break concrete are considerable:
1. Lost fuel and c-store sales. In most “break concrete” scenarios, the forecourt will need to be closed for weeks—maybe months—for safety reasons until the equipment is restored, it passes testing and the forecourt is rebuilt to local codes and regulatory standards. If a severe environmental incident occurs, the impact on the station’s reputation may damage the company’s brand and the store’s standing within the community, diminishing customer loyalty.
2. Labor and materials. Concrete removal and remediation of
contaminated soil are expensive. You may need to coordinate services from two crews—a concrete removal company and a petroleum contractor—to complete repairs.
You will also need to pay material costs and hazardous waste disposal.
3. Permits, applications and engineering design fees. The bigger the job, the longer the process and the higher these soft costs will be.
Product supply piping is a prime example of how vetting the serviceability advantages can pay off.
First, the piping material itself significantly impacts the long-term maintenance profile of this critical fueling system component. Compared to joint-free, corrosion-resistant flexible piping, systems that are constructed with rigid and semi-rigid piping contain buried fittings and joints that increase the likelihood of a leak.
Secondly, to repair or replace rigid or welded plastic piping concrete must be broken, the backfill excavated and contaminated materials hauled away. Unfortunately, when the underground equipment is exposed, additional problems in the system often reveal themselves, increasing the scope, timeline and costs of the job.
There are alternatives for rigid piping. For example, fully integrated, doublewall flexible piping systems contained in an access pipe with flexible entry points provide continuous access to the piping without breaking concrete. Spill buckets can offer similar advantages. The ability to replace a single-wall cartridge or upgrade to a double-wall configuration in a spill container without having to dismantle the concrete collar improves efficiency and saves costs.
CUTTING COMPLEXITY PAYS OFF
Equipment engineered to be quickly and easily installed saves time and helps reduce labor costs. Rigid piping, for example, requires precision alignment and fittings. Subsequently, materials and labor costs at the time of installation are generally higher for rigid piping compared to flexible piping.
Plug-and-play components simplify installation. For example, advanced composite fabrication processes enable manufacturers to produce universal dispenser sumps that are compatible with all dispenser models and facilitate easy nesting, stacking and unstacking. Sumps that arrive on-site pre-plumbed with dispenser tops, entry fittings, stabilizer bars, emergency shear valves and connections allow substantially quicker installations and reduce the chance for in-field assembly errors.
Seeking out fueling system equipment that eliminates the need for specialized ancillary components, such as customized manholes to access underground equipment for future testing, reduces material costs and eliminates additional system parts that will need to be maintained.
INNOVATION DRIVES LOWER TCO
Even the most robustly engineered fueling system equipment requires occasional servicing of wear parts.
Fortunately, there are components that can be serviced in place and reduce unnecessary complexity across the forecourt, providing long-term value in their products. When purchasing new fueling system parts, ask your distributors and equipment suppliers to explain the part’s installation, testing and maintenance advantages. Look for systems that are easily accessible and that will result in faster service calls, fewer shutdowns and greater reliability when it matters most.
Ed Kammerer is the vice president of global product marketing at OPW Retail Fueling. He can be reached at ed.kammerer@opwglobal.com. For more information on OPW Retail Fueling, go to opwglobal.com/opw-retail-fueling.
Maximize Your Car Wash Marketing
How you can stand out to customers who think all washes are the same.
BY SHAY BAIG
When consumers have plenty of car wash options to choose from, strategic marketing and defining your brand identity is essential to stand out from the competition— especially if they think that “all car washes are the same.” That means defining what makes the wash unique—whether it’s the products, eco-friendly practices or exceptional customer service—and telling that story so that you can attract new customers and keep them coming back.
FIRST IMPRESSIONS
First impressions generally start with signage. Invest in high-quality and even illuminated signage that’s visible from major thoroughfares. Consider branded elements like arches or menu boards that reinforce your professional image and clearly display the value of your offer.
But for some customers, that first impression starts before they are even in the car. The first place your potential consumer discovers your car wash could be online. This is your
chance to entice new customers with a user-friendly website for all digital platforms that describes what your car wash is along with easy to find information related to your location, prices and other relevant information like specials.
It’s also important to have an active social media presence on popular sites to showcase the services you offer—as well as the experience. Short videos can showcase the fun experience at your wash or celebrate customer testimonials.
Beyond signage and digital media, there are other ways to get the word out and set your business apart.
Sponsorships: One way to get your car wash’s name out there is by sponsoring a local school sports team or another popular attraction in your area. Since we have cold weather over the winter months in Canada, we hand out branded hot chocolate during town local Christmas parades. It helps build awareness of the car wash brand and of our products, since many people don’t think of us as a coffee destination.
Events: Another way to promote your business is to hold a grand opening event for a new location or an anniversary event for an existing one. At these special events, offer limited pricing or freebies to build awareness, just like how food retailers use sampling to get people to try new offers. If you offer a free wash, customers can compare your car wash to the one they typically use, and if your service stands out you may be able to change their routines.
MEASURING SUCCESS
As with any process in your business, you will want to monitor your marketing performance. Track some basic metrics to gain valuable insights into what’s working and what isn’t. Some simple metrics to track include:
• Growth on social media (increases in followers, likes, comments) over a certain period of time
• Redemption of digital or physical coupons
• Overall growth in revenue compared to any marketing expenses over the same time period
DEFINE YOUR CAR WASH BRAND IDENTITY
Take 20 minutes to clarify and strengthen your brand identity:
Reflect on your values. What do you and your business care about? What do you want your customers to think about when they picture your car wash? Write down three core values that guide your business. Examples might include “sustainability,” “quality” or “community focused.” These values will serve as the foundation for your brand.
Identify your unique selling points (USPs). Answering these questions can help you draft your USPs:
• What does your car wash do better than others?
• What do your customers consistently praise about your service?
• Are there unique features (e.g., biodegradable soaps, advanced drying systems, loyalty programs) that set you apart?
Craft your brand statement. Combine your values, USPs and customer insights into a single sentence that describes your brand. For example: “At [Your Car Wash Name], we provide eco-friendly, high-quality car care while delivering exceptional service to busy professionals who value sustainability.”
Then, test your statement. Share it with your team, trusted customers, family or business peers. Ask them if it resonates and clearly conveys what makes your car wash unique.
If it passes the test, incorporate it into your marketing. Use your refined brand identity to guide your advertising, social media posts and customer interactions. Consistency is key to creating a memorable and lasting impression.
Your carwash can be a great source of revenue for a convenience retail site. However, you are leaving money on the table if you are not promoting the wash with the same level of consideration and effort as any other profit center.
As with any process in your business, you will want to monitor your car wash performance. Tracking some basic metrics can provide valuable insights into what’s working and what isn’t.
Shay Baig is the marketing manager at Transchem Group & Turtle Wax Pro, a family-operated business based in Cambridge, Ontario, Canada. Learn more at www.transchem.com.
Adopting Dispenser Tech
Small retailers can find multiple benefits from investing in dispenser technology.
BY KAREN TURNER
There is a saying that you can’t teach an old dog new tricks. But if you think about our industry, that’s not a strategy for growth. You have to constantly learn new tricks—or specifically, technology—to continue to delight customers. The problem is, you have to know the right tricks—and how to find them.
Larger retailers have IT departments that help them choose the right products and take advantage of the features that come with their technology stack. They also have great marketing departments that can leverage the technology to engage their customers and help create loyalty to their brand.
But what about the smaller retailers that don’t have those same resources? How do they determine what technology to choose and how it will impact their customers’ experiences at their stores while getting the best return on their investment?
CREATING A POSITIVE FUELING EXPERIENCE
When purchasing new equipment, the first concern is usually related to the cost, especially dispensers for the forecourt.
But it also has to be a seamless experience. The dispenser has to deliver the correct amount of product and always be operational. You need reliable printers for receipts. Plus, it’s
almost table stakes to have a greatlooking dispenser on the forecourt will steer customers onto your lot and that may even feature display that engage customers.
Can we get all these things at a reasonable price while still being future-proofed?
The technology at the forecourt is a critical customer interface. Investing in a higher-end dispenser will not only provide customers with the best fueling experience but can also give you a foundation for future growth.
For example, a larger screen that removes the push-to-start buttons also eliminates mechanical parts that break or wear while giving the ability
to sell new product grades as they become available.
That large screen also becomes a canvas for telling your customers about your brand and your in-store offer, whether regular items or specials available that day.
The technology available for the forecourt has improved dramatically since the introduction of card readers at the dispenser. It makes it easier to provide the customer with a frictionless fueling experience. The dispensers have much more intuitive interfaces, making the pre-fuel part of the transaction easier to navigate. Having the option for contactless payments speeds up the transaction and reduces physical touchpoints at the dispenser.
Technology also makes it easier for customers to select the right products for their cars—and that could mean higher volumes and margins.
Some newer dispensers have camera options that can help customize the customer experience. The soccer mom filling up her minivan with the team in tow might appreciate the camera for security reasons. Meanwhile, potential thieves would be deterred by more watchful eyes at the pump. And, for the person who is unfamiliar with the dispenser or needs a little extra assistance, video conferencing support can be available.
LEAVE THEM WANTING MORE
Now that the customer has filled up and hopefully gone inside the store for an additional purchase, how do you create that stickiness that makes them want to come back?
With the latest dispenser technology, you can showcase content based on customer behavior. For example, if your customer is not a member of your loyalty program, the first thing you can promote during the fueling transaction is your loyalty program and offer them the ability to sign up with a QR code. Studies have shown customers are much more likely to sign up digitally compared to a printed pump topper. Similarly, if you are promoting a
higher ethanol blend that is a new offering at your store, you can advertise the value of it to customers who did not select it. Dispensers can also tell customers about your community outreach and use dispenser displays to educate them about how you support the community.
Finally, modern dispensers can help grow your foodservice sales. With today’s technology, customers can order made-to-order items at the dispenser and then come inside to pick up a few more items to grow their basket size. There is nothing better than reducing wait times for customers who already don’t have enough time in their day. Ordering at the dispenser is easy, and the kitchen can prepare the order while your customer fills up. The additional time savings makes them more unlikely to go someplace else to get food after filling up.
START WITH A LIST
For smaller operators with limited resources, technology and the new digital landscape can sometimes be intimidating. Finding the right equipment for your store and maximizing its potential takes time and effort. But you can do it if you make a list prioritizing the things that are important to your business and your customers.
With that list, you can learn more about your existing equipment and what you will need for the future. You may even find that your existing dispensers can promote the things that are important in your business, or that your point-of-sale already can support self-checkout, making transactions quick and easy for your customers.
There are many great, easy-to-use tools available, including tools with intuitive user interfaces for forecourt content management and dispenser monitoring.
The keys to success are identifying your goals, asking the right questions and trying a few new things to help your business grow and keep your customers coming back. And when you do, you definitely will learn a new trick or two.
The technology at the forecourt is a critical customer interface. Investing in a higherend dispenser will not only provide customers with the best fueling experience but can also give you a foundation for future growth.
Karen Turner is director of retail sales solutions at Source North America. She has more than 37 years of experience in the petroleum equipment industry in engineering, product management and sales. Contact her at kturner@sourcena.com or visit www.sourcena.com.
Reducing Carbon in Fleet Operations
TEI provides critical resources for fleets looking to reduce their carbon emissions.
BY KEITH REID
Commerce moves on the road, driven by the trucking industry through medium and heavy-duty vehicles (MHDVs). They transport about 70% of domestic freight and tie together the entire logistical infrastructure. They are also a significant contributor to carbon emissions.
The U.S. Environmental Protection Agency (EPA) estimated that transportation contributes nearly onethird of the emissions in the United States (28% in 2022), and trucking is a significant proportion of that figure, up to 25% for heavy-duty vehicles, with 95% of the world’s transportation energy coming from petroleum-based fuels, largely gasoline and diesel.
On the commercial transportation front, carbon reduction initiatives are currently centered on the former Biden Administration’s Clean Trucks Plan, which is being implemented through three phases that began in 2022.
• Phase 1 focuses on reducing emissions that form smog and soot and will apply to heavy-duty engines and vehicles beginning in model year 2027.
• Phase 2 focuses on light- and medium-duty vehicles and addresses multi-pollutant emissions, including greenhouse gas emissions and emissions that form smog and soot, for model year 2027 and later commercial pickup trucks and vans.
• Phase 3, the final rulemaking, focuses on greenhouse gas emissions for model year 2027 and later heavy-duty vehicles.
“EPA’s standards complement President Biden’s unprecedented investment in our workers and communities to reduce harmful emissions, while strengthening our manufacturing capacity for the transportation technologies of the future,” said Biden’s National Climate Advisor Ali Zaidi. “By tackling pollution from heavy-duty vehicles, we can unlock extraordinary public health, climate and economic gains.”
However, the Trump Administration is working to reverse much of the Biden carbon policy. In March 2025, EPA
Administrator Lee Zeldin announced the agency will undertake 31 actions to advance President Trump’s “Day One” executive orders. And in July, Zeldin announced a proposal to rescind the 2009 Endangerment Finding.
“With this proposal, the Trump EPA is proposing to end 16 years of uncertainty for automakers and American consumers,” said Zeldin. “In our work so far, many stakeholders have told me that the Obama and Biden EPAs twisted the law, ignored precedent and warped science to achieve their preferred ends and stick American families with hundreds of billions of dollars in hidden taxes every single year.”
Zeldin stated that, if finalized, rescinding the Endangerment Finding and resulting regulations would end $1 trillion or more in hidden taxes on American businesses and families.
“We commend President Trump and EPA Administrator Zeldin for taking decisive action to rescind the disastrous GHG Phase 3 rule,” said American Trucking Associations President and CEO Chris Spear. “This electric-truck mandate put the trucking industry on a path to economic ruin and would have crippled our supply chain, disrupted deliveries and raised prices for American families and businesses. Moreover, it kicked innovation to the curb by discarding available technologies that can further drive down emissions at a fraction of the cost.”
Nothing has been decided yet, and there is always the potential for a new administration or shifts in congress to stall or reverse the current direction. Regardless, carbon policy is not disappearing any time soon. The regulatory environment is still poised to impact the trucking industry nationally and most certainly there are regional and local pressures that continue to push for lower carbon intensity fuels and powertrains.
It’s worth noting that while the impact of switching to alternatives can
be substantial, there are applications where solutions such as electrification (with various service profiles) can be a cost-effective alternative to conventional fuels instead of a forced replacement.
With that in mind, the Transportation Energy Institute (TEI) has provided several significant resources to help fleets guide their carbon reduction strategies.
The first is the report “Practical Guide to Cost Effective Fleet Emissions Reductions” which provides a flexible roadmap that can be tailored to the requirements of a variety of fleets, vehicle types and use cases. At nearly 100 pages it takes a close look at the options available to reduce emissions and how such options may affect capital and operational expenses. With this guidance fleets can better understand and assess the application and impact of the available technologies.
The second resource is the online AltFleet Economic Insight Tool. This tool enables fleet owners and interested stakeholders to evaluate the environmental and economic impact of different vehicle technologies and fuel choices. Fleets can customize the tool to fit their markets and operations, from how the vehicles are used to how they will access energy to how the company will pay for them. It greatly simplifies a lot of leg work and research by calculating a range of variables to deliver an economic and emissions reduction report to help identify and analyze options.
“We recognize the importance of supporting fleets in reducing emissions, whether they are pursuing their own environmental objectives, seeking to satisfy demands from their customers or complying with regulatory requirements,” said John Eichberger, TEI executive director.
TEI RESOURCES OVERVIEW
Both resources are designed to work together with the guide providing a
We recognize the importance of supporting fleets in reducing emissions, whether they are pursuing their own environmental objectives, seeking to satisfy demands from their customers or complying with regulatory requirements.
flexible road map that can be tailored to the requirements of a variety of fleet vehicle types and use cases. It is applicable for both small and large fleet operations and provides a great deal of detail about the definitions, requirements, and comparisons between the different alternative fuels and powertrain options.
“Whether you are starting from scratch or considering the next steps on your existing decarbonization journey, this guide will make the process far easier,” Eichberger said.
“The accompanying AltFleet Economic Insight Tool helps to support decisionmaking by providing bespoke cost analysis for your fleet vehicles.”
These resources, both free to private and public fleets, are based on “well-towheel” emissions and do not account for the emissions from vehicle or powertrain production.
COMMERCIAL FUELS
ALTERNATIVE FLEET FUELS AND POWERTRAIN OPTIONS
What are the alternative transportation choices that fleets should be considering today? Here is a listing.
Battery Electric Vehicles (BEVs) are equipped with electric motors that draw power from a rechargeable battery pack. Over the past decade, significant cost reductions and technological advancements in batteries, along with the introduction of regulations in various jurisdictions, have led to an increase in commercially available BEV models in the MHDV space.
Hydrogen Fuel Cell Electric Vehicles (FCEVs) are powered by electric motors that run on electricity generated by hydrogen fuel cells. (FCEVs also have a battery pack for regenerative braking and power optimization.)
Hybrid Electric Vehicles (HEVs) combine one or more electric motors. HEVs use the internal combustion engine (ICE) as the primary power source and supplement it with the (secondary) electric motor.
Biodiesel is a diesel substitute fuel derived from organic sources such as plant oils (e.g., canola and soy), animal fats and other organic feedstock from agricultural processing waste/byproducts and forest biomass through a transesterification process.
Renewable Diesel (RD) and biodiesel have similar feedstocks, but their production, availability and engine behavior differ. RD is typically produced using an isomerization and hydrogenation process, resulting in a hydrocarbon that is chemically equivalent to petroleum diesel and satisfies the ASTM D975 specification defining traditional diesel fuel.
Renewable Natural Gas (RNG) and biomethane are terms often used interchangeably, but they have specific distinctions based on their production processes and end uses. While RNG is a broader term that denotes the larger concept of developing renewable natural gas from biomass, biomethane specifically refers to high-purity methane produced from biogas, highlighting its biomass origin.
Plug-In Hybrid Electric Vehicles (PHEVs) combine an electric motor with an ICE. The vehicles can switch between both power sources or use them simultaneously. PHEVs differ from HEVs in that they have a battery pack that can be charged externally (i.e., plugged in).
Dimethyl Ether (DME) is a synthetically produced alternative to diesel, designed for use in compression-ignition engines with specialized fuel systems. DME is known for its clean combustion properties, producing virtually no soot and reduced nitrogen oxide (NOx) emissions compared to diesel while offering comparable energy efficiency and engine performance.
Hydrogen Internal Combustion Engines technology represents a modification of traditional ICEs to use hydrogen as a fuel instead of gasoline or diesel. These engines produce lower emissions compared to conventional gasoline or diesel engines, although they are not as clean as FCEVs.
As the guide notes, zero-emission technologies like battery electric vehicles (BEVs) and hydrogen fuel cell electric vehicles (FCEVs) are still emerging and have demonstrated effectiveness in applications like transit bus fleets and urban delivery. Some estimate that BEVs could meet the needs of 49to 65% of MHDV truck routes, especially for regional delivery fleets.
Meanwhile, FCEVs hold promise for long-haul operations due to their extended range and fast refueling capabilities. Although initial costs are high, advancements in zero-emission vehicle (ZEV) and fuel technologies are projected to bring total cost-of-driving parity with diesel by 2035, according to the National Renewable Energy Laboratory (NREL).
Transitioning fleet operations to a low- or zero-emission powertrain may result in changes in range, payload, route planning and refueling and maintenance practices, which must all be considered as part of the analysis.
For fleets that are still waiting for technology and cost profiles to serve their operational and economic needs, sustainable fuels provide an excellent interim option, particularly for legacy vehicles relying on internal combustion engines (ICEs).
The guide goes into detail on the range of solutions available, provides advantages and disadvantages and describes how to analyze and work though the different options as plugged into six steps:
• Foundation Setting: Begin by assembling a dedicated project team, developing a comprehensive understanding of the options, securing internal financing and exploring available incentives.
• Target Setting: Establish an overall vision or target, supported by more specific goals. Before full-scale deployment, a pilot program is recommended to gather real-world data on performance, operational
COMMERCIAL FUELS
adjustments and ecosystem needs. This step is helpful in identifying potential challenges and making necessary adjustments.
• Procurement: Select and procure new vehicles or modify/ repower existing fleet vehicles and charging/refueling infrastructure. Plan for charging/ refueling, including a facility assessment to ensure that the necessary infrastructure can be accommodated.
• Installation: Complete facility upgrades and install charging/ refueling infrastructure.
• Training and Deployment: Implement comprehensive training programs for drivers, maintenance
staff and first responders. Following successful testing and training, deploy the low-carbon vehicles or fuels into your fleet operations.
• Monitoring and Scaling: Continuously monitor the performance and environmental benefits of the low-carbon fleet. Use insights gained to refine practices, share learnings, and plan for scaling across the fleet.
This is just a short overview of the comprehensive information these resources offer fleet owners. With so many options and considerations that go into the process, the capital and operational costs involved in making significant fleet decisions to reduce
carbon emissions is complicated. It pays to have the full range of information available, though both the guide and online tool, when working through the process.
The “Practical Guide to Cost Effective Fleet Emissions Reductions” and the online AltFleet Economic Insight Tool can be accessed at transportationenergy.org.
Keith Reid is editorin-chief of Fuels Market News. He can be reached at kreid@fmnweb.com
Expanding From a Niche Base
VP Racing Fuels is celebrating its 50th year as a lifestyle brand for the performance-minded customer.
BY KEITH REID
Every company looks for ways to set its brand apart from competitors. Most often that focus is on capturing the average consumer with the excellent execution of traditional offers. But sometimes companies start by excelling in a niche for a specific customer profile, then work to expand into a more conventional customer base. VP Racing Fuels built itself up from the latter approach.
“One thing that we’re most proud of is that we are a lifestyle brand and our fan base following is quite extensive and amazing,” said Loretta Terranella, VP’s vice president of branded retail.
The company was founded in the early 1970s by Steve Burns, a young racer and self-taught chemist in San Antonio, Texas, who was experimenting with fuel blends in his parents’ garage. His first product, “C12,” gained traction locally, leading to the establishment of VP Racing Fuels in 1975 with Buddy Morrison and David Reher to drive early testing for VP Racing Fuels.
After taking charge of VP in August 2011, Alan Cerwick bought a majority share of the company in 2014 and acquired complete ownership in 2016. He continues to serve as the company’s president.
“We’re really excited about celebrating 50 years,” said Terranella. “Not a lot of companies in our industry make it that far—especially independently owned companies.”
VP Racing Fuels has grown to over 300 staff and operates five distribution points in Texas, Indiana, Delaware and Tennessee. It has U.S. regional offices plus an international office in Berlin.
The company does not take its racing heritage casually. This further helps market the brand internationally for those who would be its core customer base. VP is the Official Fuel of racing series like IMSA, NHRA, SCORE, World of Outlaws, AMA Pro Motocross,
MotoAmerica, SRO GT World Challenge, Champ Offroad, American Flat Track, USF Pro, USAC, NASA and more than 60 other sponsored series and sanctioning bodies.
VP also promotes its brand in a range of movies and other entertainment spectacles.
BRANDED RETAIL
VP supports a robust global network of retail fueling locations, including marinas and carwash locations. These are located across North America (350+ sites) and globally to a network of over 2,000 dealers.
The company doesn’t directly supply the sites in the network; instead, it establishes long-running relationships with distributors that include access to VP performance additive packages for gasoline and diesel. The distributor splash blends the additives.
“Through that relationship we’re able to secure long-term fuel contracts for ourselves, and also for the distributor that is servicing that c-store customer,” Terranella said. “Retailers can offer a premium product that the consumer can’t get anywhere else; that is a way for them to stand out and be more competitive against the big boxes or other high-volume retailers near their location.”
VP also offers an extensive private labeling business for its various fuel products, which includes oil and gasoline premix fuels for two-cycle engines. Partners include Tractor Supply, AutoZone and Walmart, among others.
On the branded retail side, VP has expanded into marinas and car washes and built products around those outlets. Terranella said that VP-branded stores see an uptick in premium sales as a carryover benefit from the brand for performance-minded customers who drive sporty vehicles.
Terranella said the company looks for partners who value long-term relationships and want to be at the
front of product innovation.
“Our goal is that those mutually beneficial partnerships can feel as authentic as any real friendship,” Terranella said. “We want someone who’s hungry to expand their market share and look for a way to differentiate themselves from the rest of the pack. Not only do we have these great products, but we really are a lifestyle brand and that is what really makes us unique.”
From a pricing standpoint, VP’s retail fuel price is marketed as a premium brand but is not typically priced above regular market rate for standard gasoline. The goal is to be cost competitive with, or sometimes cheaper than, other brands in the same locality.
VP can support rebranding efforts, as can the company’s distributor partners where it is built into the price proforma to the site. The company addresses these decisions on a case-by-case basis.
MERCHANDISING OPPORTUNITIES
VP has a strong fan following in which the customers are brand enthusiasts and provide significant opportunities for ancillary product sales.
“Our goal is to give our retailers a way to increase their product sales inside the store,” Terranella said. “We do that through a dedicated apparel line. We have a dedicated additive and car care line that can only be sold inside a VP-branded gas station.”
The key ancillary product is a range of specialized race fuels, sold in 5-gallon “pails” displayed in racks outside the store in a similar manner to propane canisters. The retail on these products can top $200—with a good margin for the retailer—and is intended for amateur or semiprofessional racers or enthusiasts with a high-performance vehicle with the fuels they need to get the most out of high-compression engines.
“Our fan following really does follow us everywhere we go,” Terranella said. “People will literally drive 100 miles to
Retailers can offer a premium product that the consumer can’t get anywhere else, that is a way for them to stand out and be more competitive against the big boxes or other high-volume retailers near their location.
FUEL MARKETERS
get a five-gallon pail of race fuel, and we do not allow any c-store outside of a branded VP store to carry race fuel in the pails outside the store.”
The company also is expanding its branded merchandising: Several stores in California are developing merchandising options that include mannequins in the store showing VP apparel, much like Buc-ee’s does.
As part of the brand image, VP uses American manufacturers for its ancillary products.
“We’re really proud that we support the American worker,” Terranella said. “Everything we do from testing to loading the pails, to the label creation to the products themselves are all done here in America. And we have an outstanding R&D quality control team that creates our products and tests everything.”
That focus extends to getting fuel samples from the refineries producing the bulk fuels to confirm product performance.
Terranella noted that VP offers a competitive credit card rate and allows retailers to choose their in-store technology, including the POS system.
The company dedicates marketing resources to support retail operations
that work closely with the regional sales managers in each division.
“Whether you’re talking about race fuel or the branded c-store program or our consumer product division they have a resource assigned to them,” Terranella said. “For our distributors, we have boots on the ground assisting them every day in developing the retail network.”
Is the VP brand for everyone? It is a lifestyle brand with a niche. Those customers exist universally but require some market density to maximize the opportunities.
“When it comes to additives, location can come into play,” Terranella said.
“It’s more effective with locations on a major interstate or in urban areas or near a racetrack. One of the things that we pride ourselves on is really working with the site and working with the distributor to come up with a planogram for fuel that is going to create the most success for that location.”
For a multi-branded distributor or marketer, it might be worth a look at the service footprint throughout the network to see if the VP brand provides a perfect fit for those locations where the racing-focused lifestyle brand could really maximize revenue opportunities.
Our goal is to give our retailers a way to increase their product sales inside the store. We do that through a dedicated apparel line. We have a dedicated additive and car care line that can only be sold inside a VP branded gas station.
Keith Reid is editor-in-chief of
Fuels
Market News. He can be reached at kreid@fmnweb.com
Many consumers still back environmental goals, but high costs are eroding that support.
BY ALLEN SCHAEFFER
Will it be consumers fed up with the skyrocketing prices at the pump or job losses and fuel shortages from two major refineries shutting down that will may remembered as California’s “aha” energy moment… or something else? It’s too soon to tell, but that time does appear to be drawing closer.
California has perfected a fitful relationship with energy, even as the largest state economy demands more of it.
Clean air and climate goals have long dictated the terms of the relationship, while affordability and access were sidelined. California functions as a fuel island—largely isolated due to its lack of pipeline infrastructure. This,
combined with the state’s unique blends of gasoline and diesel fuel and increasingly strict carbon intensity limits, makes transportation fuels costlier to produce than in other states. California has the highest state gas tax in the country and other fees and costs embedded into every gallon of gasoline sold in California makes it easy to see retail prices reach $5 to $6 per gallon. Proposed bans on the future sale of gasoline-powered vehicles and policies to shift transportation to all electric by 2035 add to the writing on the wall.
The relationship between California’s government and the oil industry has never been a good one, starting with a lawsuit seeking to hold major oil companies accountable for climate change. Then a public feud between
A new poll from the Public Policy Institute of California finds that while many Californians back the state’s climate goals, growing frustration with high energy costs is starting to erode that support.
California Governor Gavin Newsom and the oil industry that began in 2021 escalated from a war of words and accusations on price-gouging to legislative proposals and plans to cap oil industry profits. And newly enacted legislation now requires refiners to store more gas and share supply and other plans with the state.
Today the supply, demand and cost of energy in California—and across the West—are extremely out of balance. And it’s not just the policy world that is noticing. A new poll from the Public Policy Institute of California finds that while many Californians back the state’s climate goals, growing frustration with high energy costs is starting to erode that support. In fact, 86% of Californians view high gas prices as a problem, with 52% calling it a major problem. Some 81% believe that high energy prices will hurt California’s economy, and 54% say the damage will be significant.
Opposition to California’s Cap-andTrade program is at its highest level since 2014, and support has dropped seven percentage points in the last year. The share of those who believe stricter environmental regulations hurt the economy and cost too many jobs is at its highest level since 2013. Support for California’s mandate that all electricity be from renewable sources by 2045 is at an all-time low. Opposition to the state’s law to cut greenhouse gas emissions 40% below 1990 levels by 2030 is at an all-time high, and the share of Californians who think these state climate policies will cost jobs is at an all-time high.
When one-fifth of the state’s refining capacity needed to produce California’s unique fuel blends is shutting down or leaving, it signals a problem. This is particularly significant as California is the second-highest gasoline-consuming state in the nation.
The state’s response now may be too little too late. Governor Newsom tasked the California Energy
Commission (CEC) to “redouble the state’s efforts to work closely with refiners” to ensure access to reliable transportation fuels and “that refiners continue to see the value in serving the California market”—even as the state transitions away from fossil fuels. The CEC responded in late June with a warning that the state “faces the prospect of continued reduction in in-state petroleum refining capacity that outpaces demand decline for petroleum-based fuels.”
It is a familiar story in 2025, in which past bold aspirations don’t match the realistic expectations of the present. California’s efforts to reduce the consumption of gasoline have gotten way ahead of consumer demand for zero-emission vehicles.
Recommendations from CEC to pause the penalties on oil company profits and the Governor’s legislative proposal to ease permitting for in-state drilling in Kern County are a start, but are they enough?
Affordability and access to energy resources go hand in hand—regardless of whether it is liquid petroleum fuels, renewable low carbon fuels or electricity from the grid. Energy costs hit every consumer and supply chain from electric power to transportation fuels. From passenger cars to heavyduty work trucks, there is widespread recognition that the infrastructure to adequately support zero emission technology needs more work and development for these technologies to succeed. That is even the case in California, the state that has championed them the most.
Work must continue to build that infrastructure, but as California’s experience shows us, it isn’t wise to dismantle the existing fuels and energy industry at the same time. Our economy must keep working, moving and delivering with whatever engine, technology or fuel type works. Nothing should stop that.
When one-fifth of the state’s refining capacity needed to produce California’s unique fuel blends is shutting down or leaving, it signals a problem. This is particularly significant as California is the second-highest gasoline-consuming state in the nation.
Allen Schaeffer is the executive director of Engine Technology Forum.
Creating A Succession Plan Even If You Don’t Have Kids in the Business
‘If you don’t know where you are going, you’ll end up someplace else.’
BY JOHN KIMMEL
Baseball legend Yogi Berra was known for his quotes that seemingly have no meaning and deep meaning at the same time. His quote above certainly wasn’t about succession planning, but the advice is spot on because planning is everything. When it comes to succession planning you only have one chance to get it right. If you don’t ask yourself the right questions, make the
right plan and take the right actions, your business might not survive.
THE FIRST STEP
The first thing you need to do is to ask some simple, but important, questions. The answers may determine if succession is right for you.
1. Why do I want my business to continue after I retire? For most petroleum marketers, the
answer is that they want their kids to continue in the business, just like they did when their parents retired. That’s great if you have kids working in the business, but what if you don’t have kids in the business? While other types of succession are possible, they are usually more complicated and difficult to execute; if you don’t have a compelling answer to this question,
it may make more sense to sell your business when the time comes.
2. What do I hope to accomplish with my succession plan? Usually, the answer has to do with providing a stable income for someone you care about. You need to decide what the answer is and make sure the plan that you create will accomplish that goal. If you don’t have the right person with the right skills and the right passion, then you won’t get the results you desire.
3. What legacy do I want to leave when I am gone? You committed decades to creating a company that tells a story about your love for your family and your community. If your successor doesn’t believe in and pursue the same legacy, then the “why” that drives your company will change. Make sure you can live with that before you give the reins to someone else.
4. Will my business fund my retirement as well as what I want to accomplish? For some of you, the business isn’t profitable enough to provide for both your retirement and for the family that you hope will succeed you in the business. You may have to make a hard choice, and passing on the company may not work. I have seen when a company that has been stripped of its cash and most valuable assets gets passed on to someone else. Trying to run a cashpoor company is not a blessing—it is a beating, and you don’t want to do that to anyone, especially someone you love.
5. Is leaving my business to someone else the best way to accomplish my goals? Perhaps your goal is that the proceeds from your company will be given as scholarships to kids in your community. In this scenario, selling the company and putting the proceeds in a trust might be the best way to accomplish your goals. On the other hand, if you have someone
who is like-minded, will carry out your wishes and is capable, then succession could be the best path. Make sure you openly discuss your wishes with your successor. We often find that the prior generation had a completely different vision for the company than the current generation.
6. What impact will my plan have on my taxes? According to Paul Rath of Joseph Hale Advisors, “Your plan to exit or transition should be structured to maximize your after-tax retirement funds.” Rath stresses the importance of getting this part right before you structure the deal. This is true regardless of whether you are selling or gifting your company to someone.
WHAT’S NEXT
After you’ve answered these six questions about succession planning, you’ll want to address questions about your successor. While kids working in the business are the most common successors, there are other options. You might choose to leave your company to children who do not work in the business. In this case, you are going to need to hire, mentor or train a leader who can run your company in your absence. Sometimes people wait too long before they start this process. In those cases, marketers usually end up hiring someone who is turnkey ready to run the company, and they are more expensive.
Successors don’t have to be your kids. You may have another family member who makes more sense—and it might not even be family at all. Maybe you have a friend or colleague who could run your business—or a capable employee who could take over. Maybe you even have a team of employees who could carry your torch into the future. The tricky part here is usually the financing. Creating a plan to finance the transition that works for both parties is difficult but, in many cases, it can be done.
No matter who you choose to be your successor, they need to have a working knowledge of all aspects of your business. Nobody is an expert in everything, but a fundamental understanding and the ability to hold someone accountable to each of these disciplines could be the difference between your company continuing to win or failing.
FUEL MARKETERS
What if you don’t have kids in the business? Truth is, while other types of succession are possible, they are usually more complicated and difficult to execute.
Another option is an ESOP (Employee Stock Ownership Plan) where all your employees become owners. I am wary of these options because many of them fail and a high percentage of them sell out when they are approached by a buyer. It would be better to sell your company and keep the proceeds than for you to pass the company along only to have the employees sell it anyway.
No matter who you choose to be your successor, they need to have a working knowledge of all aspects of your business—sales, marketing, merchandising (if you are in retail), operations, finance, banking, human resources, management, negotiating, product supply, compliance, communications and more. Nobody is an expert in everything, but a fundamental understanding and the ability to hold someone accountable to each of these disciplines could be the difference between your company continuing to win or failing.
The new leader also needs to have a strong work ethic—like you do. They need to be experienced with teams and with customers. They even need to be credit-worthy if the bank is going to keep your company as a preferred customer, and high-cost debt service can be fatal.
If the person or people you have in mind to succeed you have all the traits above, then congratulations! You are ready to build a succession plan. If they don’t, then build a plan to prepare them for the day they take over.
Once these decisions are made and requirements are met, the succession plan needs to include:
• A clear and specific strategic plan that includes the players, assets, mission and vision
• A definitive timeline for each step of the plan, including the final hand-off
• Specific financing including the lending institution, term and rates
• Consultants to walk you through the cultural, estate and tax planning, as well as the financial process, to perform due diligence
• An attorney to make it all legal
A great succession plan will give you peace of mind throughout your retirement. The good news is that our industry has a reputation for thoughtfully passing businesses from generation to generation—and resources exist to help you go through that process.
Far too often I talk to marketers who have made the transition but it’s not going well because they didn’t have a comprehensive plan. A well-considered and executed plan will help those you love make the most out of the opportunity that you give them. Who knows, maybe they will even be able to pass the company along again when their time comes.
For some of you, the business isn’t profitable enough to provide both for your retirement, and for the family that you hope will succeed you in the business. You may have to make a hard choice.
John J. Kimmel is the author of “Selling with Power.” He provides custom solutions to increase the effectiveness and profitability of sales teams for petroleum marketers all over the United States. Learn more at johnjkimmel.com.
What is AI , and Does it Live Up to the HYPE ?
AI is rapidly becoming the next big thing in technology—but what can it actually do for you?
By Keith Reid
Once or twice a decade, a buzz develops around a new way of doing business.
Today, that buzz is all about AI. But as with previous buzzes, there are questions to address. Is it evolutionary or revolutionary? Is it hype or is there substance? Can it help your business today or tomorrow? The answer to all these questions is “yes.”
The technology is evolutionary—AI has been around for decades through earlier versions of machine learning— but dramatic increases in processing power have allowed AI to reach revolutionary levels of performance including self-directed “reasoning” and decision-making. The newest AI, called Generative AI or GenAI, doesn’t just take data to predict, but to create something new—and continually learn and improve.
Is there hype? Absolutely. Some futurists predict that AI will dramatically transform business in ways that match or surpass the internet and will result in enormous financial gains while eliminating entire professions. Others, like Nobel Prize-winning MIT economist Daron Acemoglu, predict that AI will likely automate just 5% of tasks while adding only 1% to global GDP during this decade.
The promise ultimately lies in future applications. The capabilities that are just starting to be realized have the potential to create exciting new solutions to change the way companies interact with their customers—and drive notable increases in revenue and efficiency.
THE HUMAN TOUCH IS VITAL
While there are predictions that AI could wipe out entire professions, no one is expecting the petroleum marketing industry to be one of them. In fact, the human touch will continue
to be essential. Sophisticated AI goes beyond traditional data analysis, with elements of reasoning and decision making that make it even more important to keep humans in the loop, both during development and implementation, because there can be some odd results.
“You always have to keep the human in the loop,” said Kathleen Walch, the director of AI engagement and learning at the Project Management Institute. “Machines are good at looking at large amounts of data very quickly, and humans are not good at being able to spot all these different patterns and data, especially if you have terabyte sized data sets. Machines can do that, and then they say, ‘Hey human, why don’t you look over here and dig a little bit deeper into this?’”
Humans are critical for pairing solutions to specific market applications and removing the inconsistencies.
“You need someone who can talk to human beings who’ve been doing this and then can accurately convert it into models,” said Ishaan Grover, co-founder of Catalan.ai, a dynamic pricing platform that optimizes business performance in real time. Catalan is currently working with Price Advantage to enhance its industry-focused price modeling solutions. “By talking to our customers and having long conversations with them, we now know exactly how they’ve priced. So, then you have the whole picture that comes together.”
And once an enhanced AI solution is in place, active human monitoring is still needed.
“It’s not something you just flip on and say, ‘Okay, you’re going to be all set with this,’” said Dr. Adi Raz, head of data science at Titan Cloud, which provides fuel asset optimization solutions. “We must run the data and continually check it, fine tune it and then get it to a point where we
The technology is evolutionary—AI has been around for decades—but dramatic increases in processing power have allowed AI to reach revolutionary levels of performance including self-directed “reasoning” and decision-making.
It’s not something you just flip on and say, okay, you’re going to be all set with this. We must run the data and continually check it, fine tune it and then get it to a point where we all trust it. No artificial intelligence runs outside human interference.
all trust it. No artificial intelligence runs outside human interference. This product is meant to work with a dispatcher, for example. It can run by itself, but it really shouldn’t. The dispatcher will know something that the optimizer will not, such as if a truck suddenly becomes unavailable.”
AI AND PREDICTIVE APPLICATIONS
AI has plenty of real-life applications for the industry. “Say you’re considering predictive vehicle maintenance,” said Walch. “Now you do an oil change at 5,000 miles for every single vehicle and you have 100 vehicles in your fleet. It costs X amount of money, and you try to rotate it, but you find that that a lot of vehicles end up out of service at a certain time of the month and it’s causing issues. With AI you can begin to apply predictive maintenance— using sensor data to say which vehicles need to be serviced at what times and cycle them out so that you always have vehicles in rotation.”
AI can also help give retailers deeper insights into the broad universe that is impacted by pricing behaviors, demand or even the weather
“If I move down on price today, many things can happen in the market,” said Catalan.ai’s Grover. “The competitors can decide to undercut me, and what do I do from there? Should I go further down? Should I go up? Will they go up? How the competitors are going to react is almost more important than anything else, and not just tomorrow but also in the future. What will I do if I got less volume because of this, what do I draw from it? AI can learn from this and eventually a new strategy is formed.”
Titan Cloud uses AI to predict how much fuel is demanded at a
site on a given day, automatically assigning loads to trailers and drivers optimizing order assignments, optimizing delivery route planning and monitoring dynamic fuel demand over time.
Petrosoft used AI in its Predictive Competitor Fuel Price Pricing, even though it may not be seen as AI today, said Michael Munz, the company’s marketing operations manager. “That is AI-driven because it takes a ton of information and then quantifies it, digests it and gives it back to you in a manner that is efficient and effective. It eliminates a lot of human interaction and provides actionable data, but it’s just a quantification formula at the end of the day.”
The latest generation of AI could incorporate weather information, traffic patterns, near and distant competition, in-store data relative to inside sales and promotions, the impact of earlier pricing decisions on future behaviors, local events and activities—virtually anything that has a data stream and represents an intersection with customer decision making when selecting a site to fuel alongside the fuel price.
The predictive power of AI is used by SymphonyAI to help retailers optimize shelf planning, manage fresh food orders, execute promotions and review planogram compliance to boost planned and impulse buys across locations— while also understanding basket and conversion behaviors and predicting what will happen next.
Most of all, AI is best when it finds patterns that are far from intuitive.
Walch, from the Project Management Institute, cited an example from Walmart of how AI assists retail sales. “When a
major weather event is on the way you can expect the sales of things like flashlights, batteries, bottled water and such,” she said. However, once they started working through different data sets, they discovered people were also buying strawberry Pop-Tarts. So, it might make sense to increase sales to position and endcap with Pop-Tarts next to a section that has the other supplies.”
Let’s put all these predictive powers of AI together in a possible use case: A fuel retailer could adjust fuel prices hourly based on traffic and competitor data, use mobile app data to send a free coffee offer to a driver filling up and auto-dispatch a fuel delivery when tank levels fall below a threshold—optimized for truck routing and fuel blending.
AI TO IMPROVE OPERATIONS
Beyond predictive capabilities, AI can enhance operational efficiencies.
InStore.ai uses AI to monitor cashier interactions with customers. Conversations can be monitored in real time to spot areas that need to be addressed (including basic facility issues) or excellent performance that should be rewarded. For example, are the bathrooms being cleaned following customer comments? Are the associates promoting the loyalty program? Are customers complaining about the dispensers being down? Customer privacy is not a concern because the customer is not identified in the process.
The image recognition capabilities of AI also make it ideal for automating previously tedious tasks. Petrosoft uses advanced AI for image recognition to scan invoices and receipts with the ability to recognize handwritten signatures. This process is over 99% accurate and the results
still have a human review to spot the occasional error.
“We are already beta testing AI cashiers and looking at applying sophisticated AI for inventory, shrinkage reduction, the forecourt and pricing,” said Munz. “Then we can combine that with economic indicators and, depending on how intuitive the owner is, we can start connecting the service vendors to find out if there are any inefficiencies in the logistics chain.”
Meanwhile, Trinium Technologies uses AI to ensure that order data is directly converted into dispatchready delivery orders that carry throughout the system, creating a reliable audit trail for invoice validation. It enhances customer service by allowing businesses to accept orders in any format, ensuring a smoother and more flexible intake process. Importantly, automation facilitates knowledge transfer by standardizing order processing, shifting “tribal knowledge” to “system knowledge.”
DATA SECURITY IS CRITICAL
“If you asked me two years ago if we had any AI, I would have said 100% yes,” said John Coyle, ADD System’s vice president of sales. “We have forecasting that looks at the weather [for heating fuels] and analyzes realworld results and makes adjustments. We are already monitoring live traffic with our dispatching; we have business intelligence reporting and machine learning. But now our definitions of AI are changing constantly, and we are working to add some of the more advanced capabilities—but in a measured approach.”
A major concern during this process is ensuring data safety. AI gets smarter by analyzing all data at
its disposal—and that could include your confidential information if you are not careful.
“AI needs data for its models, but our customer’s information is sacred,” Coyle said. “So how do we share that with the right AI that doesn’t share it with others that shouldn’t get it? There’s that balance of how you harness the power of collective data while keeping your information secure and private. It’s important to slow down and put in the right procedures and protocols to make sure that you have that safety, even with inhouse development and using paid AI models.”
He also cautioned managers in any business today where employees have started using readily available, often free AI tools to help automate various administrative or reporting tasks.
“There are companies that have employees that are jumping on the free version of tools like ChatGPT and saying, ‘Hey, build me this report’ and using private company data,” Coyle said. “Several years ago, one of our people found an entire customer list from a competitor online. There are tons of things that should never be on the web.”
He explained that ADD’s employees are instructed that if they use AI in their work, they have to let management know what they are
doing, what they are using and how they are using it.
WHAT TO CONSIDER
What considerations should a retailer or marketer keep in mind when considering potential AI-promoted solutions? Transformation and innovation specialist Sherzod Odilov provided some guidance in a recent article in Forbes: “Ask yourself, ‘Is this something that will provide a real benefit, or am I being swept up by the hype?’ Evaluate its potential ROI carefully and consider piloting small AI projects before fully integrating them into your operations.”
There are clearly top-notch vendors using quality AI tools to incorporate sophisticated AI in their solutions. However, AI is still in its “Wild West” period, in which there still are a number of vendors improperly applying AI as a marketing term more than a technology enhancement.
In the end, Odilov suggests that businesses look at the capabilities offered by a solution provider and see if they enhance operational efficiency in a way that is currently not being met by existing solutions. In other words, separate the current needs from the hype of the future. Validate claims and consider solutions based on current capabilities versus future promises.
There are companies that have employees who are jumping on the free version of tools like ChatGPT and saying, ‘Hey, build me this report and use private company data.’ Several years ago, one of our people found an entire customer list from a competitor online. There are tons of things that should never be on the web.
Keith Reid is editorin-chief of Fuels Market News. He can be reached at kreid@ fmnweb.com
The Seven Patterns of AI
How do you tell an AI solution apart from other technology solutions that are applied to help solve business problems? The Project Management Institute explored that question.
“Around 2018 there was a lot of confusion about what is AI and what is not,” said Kathleen Walch, the organization’s director of AI engagement and community.
“What’s the difference between AI and machine learning? So, we came up with the Seven Patterns of AI, which is a way to categorize and understand how AI is applied to solve different types of problems.”
Here’s an AI-assisted overview of the seven patterns:
01 02 03 04 05 06 07
Hyperpersonalization uses machine learning to create detailed profiles of individuals and then adapts to their preferences over time. The goal is to provide tailored experiences, content and recommendations for each individual. For example, Netflix uses hyperpersonalization to recommend movies based on user viewing history.
Autonomous Systems involves creating AI that can operate independently with minimal or no human intervention. Examples include self-driving cars, robots in manufacturing and automated trading systems.
Predictive Analytics and Decision Support uses AI to analyze data, identify patterns, and predict future outcomes, supporting decisionmaking processes. For instance, it can be used to forecast sales trends or predict equipment failure.
Conversational/Human Interactions focuses on enabling natural and intuitive communication between humans and machines, often through chatbots or virtual assistants.
Patterns and Anomalies uses AI to detect unusual patterns or deviations from normal behavior in data. This can be used for fraud detection, network security or quality control in manufacturing.
Recognition enables machines to identify objects, faces or other data points in images, videos or audio. Examples include facial recognition, image classification and speech recognition.
Goal-Driven Systems involve creating AI systems that optimize outcomes based on specific objectives. This could be optimizing a manufacturing process, finding the most efficient route for a delivery truck or maximizing profit in a trading strategy.
Understanding these patterns is crucial for effectively applying AI to solve real-world problems and achieve desired outcomes.
THE PACE OF CHANGE
BY JOHN EICHBERGER
The Transportation Energy Institute (TEI) regularly evaluates data related to new vehicle sales and tracks the trends in consumer purchases of different power trains. This information is critical to understanding how the market is evolving and where opportunities for new technologies and energies exist. We often also remind ourselves and our audiences that while sales are interesting and give insight into how the market is trending, they do not tell the entire story because they
VEHICLES IN OPERATION
Several years ago, we conducted a rudimentary analysis of vehicle fleet turnover to help better explain how long it might take to replace the current market with any type of new technology. I called this process
Current markets conditions present questions about the future.
do not address the huge population of vehicles in operation. So, let’s explore the current market of vehicles and travel behavior that forms the foundation for potential changes in the transportation market.
“cocktail napkin math,” because it wasn’t very sophisticated—but it was at least something to work from.
In that exercise, we applied historic vehicle sales and scrappage rates to see how quickly a new technology (e.g., zero emissions vehicles) would penetrate the market if every single vehicle sold in the U.S. were so equipped beginning in January 2035. Assuming nothing else changed in terms of sales and scrappage rates, ZEVs would only capture 60% of the vehicle fleet by 2050.
That hypothetical scenario is instructive regarding the size of the market and the time it takes to affect significant change. However, it does not tell us what the market is like today. That information is available— from the Department of Energy’s Alternative Fuel Data Center (AFDC), which provides information on vehicles in operation in every state, broken out by powertrain type.
As of 2023, there were 287 million vehicles accounted for in this data set. Of that, 84.6% were vehicles equipped with gasoline-powered internal combustion engines (ICE). The second largest category was flexible fuel vehicles (FFV), which can run on gasoline blends with up to 83% ethanol (E85). Considering that AFDC reports that there are only six FFV models for sale in 2025, most people would not have guessed that there were 20.2 million FFVs on the road as recently as 2023, accounting for 7.1% of the fleet.
This robust FFV market penetration demonstrates the importance of evaluating vehicles in operation—not just new vehicles sold.
These national numbers are instructive, but for businesses operating in this market it is also important to understand regional diversity.
With FFVs, a common assumption is that they are most popular in markets where ethanol is produced, since
they can run on E85. However, they remember that they are flexible fuel vehicles and provide options—they are not required to use E85 and can operate exclusively on gasoline. In addition, not all FFVs are purchased for this technology—they simply happen to be so equipped at the dealership.
Instead, the data shows that the largest share of FFVs overall are in Texas (11.5% of all FFVs) and California (6.5%). Their prevalence in Texas should not be that surprising considering that the majority of FFVs sold were classified as pick-up trucks— as well as the size of the Texas market. The high share of FFVs in California also can be linked to the size of the market. It also helps that 12% of the country’s 4,743 E85 stations listed in the AFDC are found in California. In addition, there are benefits from the federal Renewable Fuel Standard RIN credit, as well as the California Low Carbon Fuel Credit; both provide a significant financial incentive for retailers to offer E85 and for FFV drivers to purchase it.
BATTERY ELECTRIC VEHICLES
The most talked-about vehicle powertrain in the past several years is the Battery Electric Vehicle (BEV), and sales show why there has been a buzz. In 2024, BEVs accounted for 7.8% of new car sales. However, it has taken time to build up a sizable percentage of total vehicles on the roads. From 2015 to 2023, Americans purchased 3.2 million BEVs, according to Wards Intelligence (now known as Omdia. com), but they accounted for only 1.2% of all vehicles in operation (3.6 million BEVs) in 2023. The ownership of these vehicles was also concentrated in a few states: 35.3% of BEVs were in California, with 7.2% in Florida and 6.5% in Texas.
The headlines about BEVs have led many consumers to assume that
if every single vehicle sold in the U.S. were so equipped beginning in January 2035, assuming nothing else changed in terms of sales and scrappage rates, ZEVs would only capture 60% of the vehicle fleet by 2050.
TEI found that Americans, on average, think that 28% of vehicles sold in 2024 were BEVs, far greater than the 7.8% share they represented. Even in California these vehicles represented only 3.4% of vehicles in operation in 2023.
their market penetration is much higher than it actually is. In the report “Consumer Survey—2025 Driver Behaviors and Perspectives,” TEI found that Americans, on average, think that 28% of vehicles sold in 2024 were BEVs, far greater than the 7.8% share they represented. Even in California these vehicles represented only 3.4% of vehicles in operation in 2023. BEVs have a bright future, but they remain in the early stages of market penetration.
HYBRID ELECTRIC VEHICLES
Hybrids (HEVs) are another powertrain that has shown significant growth in sales. These higher efficiency vehicles, which operate without connecting to the grid, have seen sales increase from 3.1% in 2020 to 10.1% in 2023 and 12.3% in 2024. Between 2015 and 2023, Americans purchased more than 5 million HEVs. Despite this growth in sales, HEVs have only increased their share of vehicles in operation from 1.4% in 2016 to 2.6% in 2023. This is another example of the size of the vehicle market and how long it takes for a new technology to gain market share.
In addition, even though more than 5 million HEVs were sold from 2015 to 2023, the geographic distribution remains heavily concentrated, with 23% of HEVs operating in California, followed by 6% in Texas and 5.6% in
Florida. However, it’s clear that the geographic distribution of HEVs is likely to grow in the near future.in light of production announcements and the sharp increases in sales.
The vehicle market is dynamic, and every year consumers are presented with more diverse options and models. In 2025, buyers certainly have choices of quality vehicles with different powertrains.
CONCLUSION
Change in this market will take a very long time, given the high number of vehicles currently on the roads—as well as longer times that people are holding onto their cars before they purchase a new one. It’s important to keep a sharp eye on sales trends to prepare businesses to satisfy the needs of consumers in the coming years, but it’s equally important to keep expectations grounded in reality to avoid investments based upon incomplete and erroneous expectations.
John Eichberger is the executive director of the Transportation Energy Institute.
A CONFLICT THE OIL MARKETS BARELY NOTICED
Why didn’t oil prices spike with the recent strikes against Iran?
BY KEITH REID
By 1973, U.S. oil production had declined while domestic demand had increased. That meant that foreign production—primarily from the Middle Eastern oil-producing nations—had become critical. This reality was not front-of-mind for the U.S. consumer, but that was about to change.
Following the defeat of the Arab nations in the October 1973 Arab-Israeli Yom Kippur War, the Organization of Arab Petroleum Exporting Countries (OAPEC) announced a an oil embargo against countries that supported Isreal in the war. Oil prices nearly quadrupled and the impact
was felt at the pump, with both price spikes and shortages.
The oil embargo changed the face of American motoring, killing off the big American muscle and luxury cars for roughly a decade and led to initiatives like the Corporate Average Fuel Economy (CAFE) standards that are still in place today. The 1973 oil embargo wasn’t the last time conflict impacted the U.S. oil market:
• The 1979 Iranian Revolution led to a minor reduction in oil supply but nearly doubled oil prices.
• The “Tanker War” (1984-1988) in which Iran and Iraq attacked shipping in the Strait of Hormuz during their conflict caused significant price volatility.
• The 1990 Gulf War resulted in a brief, but significant, boost in oil prices.
• The 2003 Iraq War similarly boosted oil prices significantly, but briefly.
• The 2011 Arab Spring and Libyan Civil War saw prices peak about 50% higher for a brief period.
• Sanctions against Russia triggered by the Russia/Ukraine conflict in 2022 boosted oil prices over $100 per barrel an record prices at the pump.
However, the recent attacks on Iran by Israel failed to result in more than a hiccup in oil prices in the United States. Why was the market response so muted? In mid-July, FMN discussed the topic with Denton Cinquegrana, the chief oil analyst at the Oil Price Information Service (OPIS), along with a look at the general state of the oil and refined product markets.
Previous conflicts, even minor ones, have generated significant market swings. What was different this time?
Cinquegrana: There were no disruptions to supply, though initially a geopolitical premium entered the market during that mid-June timeframe. It did spike on the open. WTI reached $78.40-$78.50, and Brent was a little over $80. However, shortly after the market opened, that $5 jump turned into $4 which then dropped down to $2, where it settled the next day after moving around some. I think it was clear that the conflict wasn’t going to escalate in ways that would impact supply.
It become apparent early on that the focus was almost exclusively on the Iranian nuclear weapons program and the leadership. Iran did not respond with actions like those in the Tanker War of the 1980s.
Cinquegrana: Israel and the United States strike Iran, then Iran says it’s going to retaliate but the retaliation was telegraphed in such a way as to minimize potential casualties and reduce the chances of escalation. The market took that as cooler heads are prevailing. This is not escalating. We’re not going to see supply take a hit or anything like that.
What is the state of Iran’s oil production and distribution? While they are a producer, they are also a refiner and energy consumer.
Cinquegrana: Iranian production is up to around 3 million barrels per day, and they export about half of that, all to China. If they try to block the straits again [as with the Tanker War] or do something along those lines, they’re only shooting themselves in the foot. They use the strait too. Having their production seriously damaged from an
Russia is still producing and they’re exporting to places like India and China that don’t recognize sanctions from the West. They have access to this cheap product, and they are going to take it—sanctions be damned.
You never say that the political impact is gone, because it’s always there.
escalation would have a direct impact on their economy, and it would also potentially alienate China.
Does this mark a change in how international conflict influences oil prices?
Cinquegrana: You never say that the political impact is gone, because it’s always there. The way I like to describe it is you think of a pot of water sitting on a stove and sometimes it’s on the back burner simmering, and sometimes it moves to the front burner and it’s boiling. It was boiling in midJune, and now it’s down to a simmer.
There often seems to be an emotional response in parts of the investment community that runs outside of cold analysis that didn’t take this time.
Cinquegrana: The reason why those folks didn’t “chase it” is because we’ve seen this before. You typically have the coordinated releases of strategic reserves, whether that’s the United States from the Strategic Petroleum Reserve or the IEA releasing oil through some of the coordinated European reserves. Those who chased the market in 2022 [the Russian/ Ukraine conflict] got burnt by that, so the memory was fresh, and there was a ‘fool me once, shame on you, fool me twice, shame on me’ mindset.
Expanding on that, how has the Russian/Ukrainian conflict panned out from an energy standpoint?
Cinquegrana: Russia is still producing and they’re exporting to places like India and China that don’t recognize sanctions from the West. They have access to this cheap product, and they are going to take it— sanctions be damned.
President Trump has been pushing further tariffs on Russia or secondary tariffs on those buying from Russia [India, China]. We’ll see how easy that is to enforce, and I think it’s going to be difficult.
What is OPEC+ doing now relative to production?
Cinquegrana: OPEC’s been fairly stable. In 2023, they had 2.2 million barrels of “voluntary cuts,” but they’ve been restoring those barrels. As we discuss this, there’s only about a half a million barrels left that haven’t been at least committed to yet. They’ll probably announce that shortly. If they’re unwinding, either they’ve lost a ton of market share to the United States and other producers, or they know they have a home for it. I think it’s the latter. Saudi Arabia has announced some increases in their price per barrel—$1 recently—so they must have a home for it. It seems like the demise of OPEC production is a bit exaggerated.
What about domestic production?
We previously discussed the $60-per-barrel range as being a trigger point for production to ramp up in the fracking fields. Cinquegrana: Correct. And the technology’s getting better. So,
maybe that’s $64 today and next year it’s $63 and the year after that it’s $62 and so on. If you listen to the quarterly calls from some of the upstream producers, the best in class are doing it at $25-$30 per barrel. The demise of U.S. producers is also being exaggerated. The fact that production isn’t really coming off despite the drilling rig rate counts dropping and the current price environment is a bit surprising, actually. What that tells me is that they are okay when prices are above that $64 level.
President Trump has called for even more production: ‘Drill, baby drill.’ How likely is that?
Cinquegrana: We’re largely doing it. The problem is, what does Trump want? Does he want 16 million barrels a day? Does he want 20 million barrels a day? Producers are going to be restrained. There have been too many
Producers are going to be restrained. There have been too many boom-andbust cycles [with fracking] in the past and they are wary of that happening again. And their investors are starting to expect a return.
boom-and-bust cycles [with fracking] in the past and they are wary of that happening again. And their investors are starting to expect a return.
Is there anything else big picture going on the markets today?
Cinquegrana: I think the diesel market is really poised to finish the year strong, and I think it’s going to carry gasoline. Supplies are tight. The U.S. crude that refiners seem to increasingly run has more light ends, and you don’t get that much distillate out of it. So that’s a bit of an issue as well.
With gasoline demand, we continue to see a slow decline—whether you want to call that a plateau or a decline is a flip of the coin. But I think gasoline demand’s best days are behind it.
Looking at renewables, the renewable diesel production margin isn’t what it once was, so you don’t just rush to produce as much as possible. Biodiesel has fallen somewhat by the wayside as well.
Keith Reid is editor-in-chief of Fuels Market News. He can be reached at kreid@fmnweb.com
OPW RETAIL FUELING INTRODUCES 71SO SEGMENTED DROP TUBE
OPW Retail Fueling launched its 71SO Segmented Drop Tube, its latest innovation in overfill prevention technology. The segmented version of the OPW Retail Fueling 71SO Overfill Prevention Valve offers the performance benefits of the original—in a more flexible, shippable and user-friendly format. The 71SO Segmented Drop Tube is suitable for both new and retrofit applications, compatible with 4-inch fill risers.
BLACKMER ADAPTER KIT FOR LB080 AND LB160 GAS COMPRESSORS
Blackmer, a brand of PSG, a Dover company, launched its new Hydraulic Adapter Kit for upgrading Blackmer LB080 and LB160 Series Reciprocating Gas Compressors. Designed to meet the evolving needs of mobile LPG applications, the Hydraulic Adapter Kit (patent pending) seamlessly transforms existing compressor setups into compact, chassis-mounted, hydraulically driven systems. This package eliminates the need for flywheels, reduces weight and footprint and improves performance in the field. The Hydraulic Adapter Kit is also available as a factory-installed option.
NEW BP REWARDS VISA OFFERS 50 CENTS PER GALLON ON FUEL
BP announced that new BP rewards Visa cardmembers can save 50 cents off every gallon of fuel at BP and Amoco stations for the first 60 days once the card is activated. This limited-time offer is available to new BP rewards Visa cardmembers who apply by February 1, 2026.
DOVER FUELING SOLUTIONS ACQUIRES SITE IQ, INTRODUCES BULLOCH
POSTM IN U.S. Dover Fueling Solutions (DFS), a part of Dover Corporation, acquired Site IQ LLC (SIQ), a Lombard, Illinois-based Industrial IoT (IIoT) company specializing in edge computing, telematics, and cloud services. The company said that the acquisition will provide customers with greater insight into site performance, faster issue resolution and more efficient operations.
DFS also announced that it is making its Bulloch POSTM system available to fuel and convenience operators in the United States. Bulloch unifies point of sale (POS), electronic payment systems (EPS) and forecourt controllers into a single software solution.
GSTV QUANTIFIES OMNICHANNEL VIDEO PERFORMANCE
GSTV, the national on-the-go video network engaging and entertaining targeted audiences at scale across tens of thousands of fuel retailers, has partnered with cross-platform TV measurement company iSpot to leverage iSpot’s Unified Measurement solution to quantify the unique, incremental reach GSTV provides its advertisers beyond linear and OTT campaigns. The partnership also connects GSTV’s network of screens outside the home to iSpot’s Outcomes measurement solution, providing advertisers a new avenue for understanding how the network contributes to driving critical business KPIs like foot traffic and sales. .
JF ACQUIRES MAVERICK PETROLEUM SERVICES
The JF Group (JF) has acquired Maverick Petroleum Services, a petroleum service contractor based in Arizona. Maverick Petroleum Services specializes in the installation, maintenance and repair of petroleum handling equipment, point-of-sale systems and environmental testing.
VROOM DELIVERY AND ADD SYSTEMS EXPAND PARTNERSHIP
Vroom Delivery and ADD Systems have partnered to offer an enhanced digital commerce solution that allows mutual customers to access enterprise-level integrations and automation. The integration allows retailers on ADD Systems to fully automate their menus, inventory, and ringups across multiple digital channels, as well as their third-party channels such as DoorDash and Uber Eats.
OUR ADVERTISERS
The Rise of Digital Loyalty Programs
BY KEITH REID
Digital loyalty programs are common in the industry today, but that was not always the case. They began arriving en masse about 20 years ago and a two-part article I wrote, “Is Loyalty in My Future?” in the November and December 2002 issues of NPN Magazine documented the new technology.
Loyalty programs were not new to the industry as punch cards, oil company fuel cards, stamp programs and similar had been around since practically the beginning of fuel retail. But the far more dynamic digital aspect was new and offered many exciting possibilities.
A study from the Carlson Marketing Group, cited in the 2002 articles, found that 60% of customers spend 27% more at a company after it offers a
loyalty program. Other estimates found between 5% and 20%. For comparison, loyalty solution provider Paytronix noted in 2024 that the convenience retailer Break Time saw a similar increase in customer spend of 25.6%.
As a boom period for digital technologies still fueled by significant amounts of venture capital, the number of offerings in the marketplace was suddenly daunting for the retailer Yet some operators were quick to get on board and had positive results to report.
Corner Pantry had just launched a loyalty program called Visible Results and the company’s president David Tucker saw loyalty as a key component for his future operations. “We’re facing stiff competition in the marketplace and I hope to build a company-wide recognition in the state in order to build our customer base,” he had said.
Tucker noted that program enrollments exceeded targets by over 26% with almost 3,000 members joining in the first week, and each spend hitting an average of $17.70 (in 2002 dollars).
Roughly a dozen of the new loyalty program entrants were profiled in the article and, as might be expected, it didn’t take long for the herd to thin, yet some passed the test of time.
KickBack Points was featured in the article as a fairly new entrant. It launched in 1999 and is now Ignite Retail Technology, with a broad suite of industry solutions and international scope. What made it notable was that it was built from the ground up to support founder Patrick Lewis’ Oasis Stop and Go convenience brand, since there was no ready-made solution he found that met his needs.
As Lewis described in the article: “We pride ourselves on looking long term. The writing was on the wall with motor fuels, and we just wanted to retain the business we already had in the face of high-volume competitors. Our goal at the time was not to increase business— but that happened.”
One insight from the article is still relevant today—a loyalty program comes with both tangible and intangible cost that the retailer must consider. You need to do it right, since a poorly researched, modeled and implemented program can result in poor performance, and potential brand damage instead of gains.
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 Transportation Energy Institute have catalogued the rich history of NPN in its entirety. Each issue of Fuels Market News looks back at the history of our vibrant industry, through the eyes of NPN, to see how it reflects the issues, challenges and opportunities we face today.
