ARKO Petroleum Corp. has filed for an initial public offering that would separate one of North America’s largest wholesale fuel distribution businesses from convenience store operator ARKO Corp., creating a standalone company focused on fuel distribution, fleet fueling and long-term dealer relationships.
The planned IPO would carve out ARKO’s wholesale and fleet fueling operations from its retail convenience-store business. ARKO Petroleum will offer shares of Class A common stock, though the filing does not yet disclose the size of the offering, pricing or expected proceeds. After the transaction, ARKO Corp. will retain control of the company through Class B shares.
ARKO Petroleum operates primarily as a fuel distributor rather than a retailer. The company supplies motor fuel to gas stations, fleet operators, and commercial customers across more than 30 states in the Mid-Atlantic, Midwest, Northeast, Southeast and Southwest.
For the year ending Dec. 31, 2024, the company distributed 2.1 billion gallons of fuel. For the nine months ending Sept. 30, 2025, it distributed 1.5 billion gallons.
The business is organized into three segments:
- Wholesale, supplying fuel to third-party dealer-operated gas stations, sub-wholesalers, and bulk purchasers.
- Fleet Fueling, operating unstaffed cardlock locations and managing a fuel card network for commercial and municipal fleets.
- GPMP, supplying fuel to all ARKO-operated retail convenience stores.
As of Sept. 30, ARKO Petroleum supplied fuel to 3,211 locations, including 2,053 third-party dealer sites, 1,158 ARKO retail sites and 288 cardlock locations.
The company’s wholesale business relies heavily on long-term fuel supply and consignment agreements designed to provide stability for both ARKO Petroleum and its dealer customers.
As of Sept. 30, ARKO Petroleum supplied fuel to:
- 1,757 sites under cost-plus supply contracts, typically exclusive agreements with long remaining terms
- 296 sites under consignment arrangements, where the company retains ownership of fuel until it is sold at the retail site.
Under these models, fuel costs are passed through to customers, reducing exposure to fuel price swings and allowing the distributor to focus on volume growth, service, and network expansion. The company says most dealer contracts have historically been renewed at the end of their terms.
Fuel is sourced from major oil companies and independent refiners and delivered primarily by third-party haulers, with limited company-owned transportation assets.
ARKO Petroleum’s distribution footprint has expanded steadily over the past several years through acquisitions and new site additions. From 2020 through Sept. 30, 2025, the company grew gallons distributed or sold at an 11% compound annual growth rate.
Management says the wholesale fuel distribution market remains highly fragmented, creating opportunities to acquire smaller distributors and integrate them into ARKO Petroleum’s existing network.
Growth has also been driven by ARKO Corp.’s ongoing effort to convert company-operated convenience stores into dealer-run wholesale sites. From the beginning of 2024 through Sept. 30, ARKO Petroleum converted 347 ARKO retail locations into third-party dealer sites. 185 additional locations are committed for future conversion or had been.
Following the IPO, ARKO Corp. will continue to own a controlling interest in ARKO Petroleum and will remain a significant customer through long-term fuel supply agreements covering ARKO-operated retail locations.
The two companies will enter into a series of agreements governing fuel supply, management services, and governance matters. While ARKO Corp. will retain control, ARKO Petroleum says any conflicts of interest will be reviewed by a dedicated conflicts committee of its board.
If completed, the offering would create a rare publicly traded company focused almost entirely on wholesale fuel distribution and fleet fueling — a sector typically housed inside larger retail or energy companies rather than operating independently.
For distributors, the IPO highlights how scale, long-term contracts and consolidation continue to reshape fuel distribution, positioning ARKO Petroleum as both a supplier to thousands of dealer-operators and an active consolidator in a fragmented market.
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