How is the fuel in the tanks counted and paid for when a gas station sells?

Fuel is stock you cannot count on a shelf. It sits in underground tanks, it changes with every sale at the pump, and a delivery can arrive at any hour. That is why a gas station sale needs its own method for the fuel: a reading both sides trust, taken at a fixed moment, and a clear answer to who owned the fuel before that moment.

Settle who owns the fuel first

On some sites the dealer buys the fuel and owns it once it is delivered. On others, the supplier keeps ownership until the pump sells it and the operator earns a commission. Only the first kind is the seller’s stock to hand over and be paid for. Read the supply agreement early, and ask your lawyer how it treats a sale of the site.

Take readings both sides witness

Agree the time of the reading in the offer, and ask whether the pumps will be shut off for it. A representative of each side watches the tank gauges or dip readings and signs the sheet. Consider keeping a binder of past readings so the buyer can see the pattern; the handover preparation page covers it.

Reconcile the readings with the books

A reading means more when it ties to something else. Compare it with the last delivery slip, the pump totals since that delivery and the previous reading. A gap deserves an explanation before closing, not after. Time the last delivery so the tanks are neither close to empty nor freshly filled when you count, and tell the supplier early, as this page on telling your fuel supplier explains.

Get the agreed amount onto the closing statement

The signed reading is turned into a dollar amount using the price method set out in the purchase agreement. Your accountant can check the arithmetic, and your lawyer carries the amount into the statement of adjustments. Settle the method in writing before closing day.