Originally Posted By: dave5358
Originally Posted By: mcrn
My understanding and I could be wrong was the additive was added when filling the actual gas stations tanks. This made sense to me since you see the same tank go from one gas station to another.
In most locals, the additive is put in at the tank truck loading terminal (aka the tank farm).
As noted above, and also from another thread, Costco actually built holding tanks at each retail location, bought their additive(s) in bulk and added it to each truck delivery. Squeeze out every penny of profit, I guess.
I think it's all a matter of economies of scale that drives how they do this. At the loading racks, each particular additive tank (and the equipment) can serve several gas stations for that particular brand. Costco has huge volumes, and their on-site additive system probably saves them money compared to paying to have it added at the loading rack. However, there probably has to be a volume of gas sales where this starts to make sense, especially given the additional maintenance and issues that occur if the additive metering equipment breaks down.
Another issue is regulatory. It's probably easier for a large industrial operation like a fuel terminal to handle it than a retail gas station that may be closer to residential areas. I remember researching Costco's new additive system. I did a search of the name of their additive and saw some county regulatory agency in North Carolina giving them the third degree about adding this system. Also - there were rumblings that regulations in California were why several stations in the state were the last to get the system added.
Also - Costco supposedly isn't trying to get much profit from gas sales. Their gas sales are supposed to drive business to the warehouse and to provide a service for members.