Gas Retailers: Irs Audit Techniques Guide

Virtually all gasoline stations fall into one of two broad categories: majors and independents. Gasoline stations that sell branded gasoline (those who operate under the major brand names, such as Mobil, Shell, etc.), usually have signed agreements which restrict them from buying from anyone other than their respective major Oil Company. However, experience shows that some major retailers do buy additional gasoline or diesel fuel from independent distributors. The major Oil Company(ies) can operate branded locations. The dealer may own the property (-open dealer") or may lease the station from the Oil Company(ies) (-dealer operated"). Sometimes diesel fuel can be purchased from independent suppliers; however, the pumps need to be clearly marked to indicate the diesel fuel product is not the major oil company's diesel fuel being sold. Independents are stations that go by any name other than those listed below. Independents are also referred to as "unbranded" stations.