SIGMA: Fuel Retailers Struggle with Penny Shortage


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   NASHVILLE, TN (DTN)  -- A national penny shortage is disrupting operations 
for fuel and convenience retailers, with limited federal relief expected until 
the government shutdown ends, said the SIGMA Government Relations Team and 
Legislative Committee this week.

   The shortage stems from both reduced minting and circulation challenges, 
leaving some regions nearly out of pennies. The deficit in change has emerged 
faster than anticipated, with seven out of ten pennies effectively out of 
circulation, members of the committee said on Thursday (11/5) during the SIGMA 
2025 Annual Conference.

   The problem is uniquely critical for fuel stations because of fractional 
pricing. Gasoline is priced to a tenth of a cent and cash transactions require 
retailers to round down the payment in the customer's favor, causing losses to 
the store.

   Meanwhile, some Federal Reserve transaction systems have also stopped 
accepting pennies, compounding regional disparities. The effects have been 
particularly pronounced for fuel retailers operating large cash-based 
businesses, according to SIGMA.

   In Wisconsin, one SIGMA member company reported that its stores are rounding 
down on cash transactions, estimating a $3 million annual loss even though only 
17% of sales are conducted in cash. Nearby states such as Minnesota and Iowa 
have been less affected due to differences in regional banking networks.

   Lawmakers are also reviewing the cost of minting nickels -- which now exceed 
their face value -- slowing any effort to formally end the penny.




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