ARKO Petroleum Corp. is a wholesale fuel distribution company headquartered in Richmond, Virginia. Formed as a subsidiary of ARKO Corp., the company is one of the largest wholesale fuel distributors by volume in North America, supplying motor fuel to customers across more than 30 states. ARKO Petroleum operates a primarily fee-based and cost-plus business model, which limits its direct exposure to commodity price fluctuations and focuses on generating stable, recurring cash flows.
The company operates through three primary business segments: Wholesale, Fleet Fueling, and GPMP. The Wholesale segment, which generates the majority of the company's revenue, distributes fuel to independent gas stations, sub-wholesalers, and bulk purchasers under long-term contracts on a cost-plus or consignment basis. The Fleet Fueling segment operates proprietary and third-party cardlock locations that serve commercial and municipal fleets, earning commissions from the sale of proprietary fuel cards. The GPMP segment is dedicated to supplying fuel to retail convenience store sites operated by its parent company, ARKO Corp., typically at cost plus a fixed margin, while also charging fixed fees to certain sites. By focusing on long-term distribution contracts and leveraging the extensive retail footprint of its parent company, ARKO Petroleum serves as a critical supply chain link between fuel refiners and retail or commercial end-users.
