We spoke with Mark Evans, GM and VP of Fuel Pricing and Logistics at PDI Technologies, about the key trends and challenges he’s seeing across the fuel and convenience industry. He shares his insights on how data science and Artificial Intelligence (AI) are shaping modern fuel pricing strategies around the globe in this two-part interview.
Q: You’ve been involved in fuel pricing for nearly 30 years. What are the core challenges facing the industry today?
A: Fuel pricing doesn’t follow a one-size-fits-all model. Each region has its own challenges—whether that involves government regulations, competitive dynamics, or demand patterns. The ability to analyze your own market-specific data is key to making informed pricing decisions. We’re starting to see how AI and data science can help pricing teams meet this challenge to achieve more consistency and responsiveness.
The greatest challenge isn’t just setting a price. It’s setting the right price at the right time—and doing so consistently. As anyone in the industry knows, fuel pricing is a delicate balance between revenue and volume, heavily influenced by external factors like market fluctuations, regulations, and consumer behavior.
Q: What are the primary differences between what retailers and wholesalers are facing?
A: For both parties, it’s about staying competitive, responding to market shifts, and ensuring that you’re growing sales. But the challenges look very different depending on whether you’re in retail or wholesale.
Retail fuel pricing is highly localized. Stations change prices, customers react, and suddenly, what worked yesterday may not work today. Pricing and sales go hand in hand, making sure you drive the right volume without hurting revenue. However, store profitability is bigger than just fuel. You need to think about how fuel pricing impacts foot traffic and in-store sales.
On the wholesale side, you’re thinking about multiple sites, supply contracts, customer relationships, and cost structures. Market position is everything as you define your strategy. Capturing more revenue isn’t just about the deal today—it’s about structuring prices that remain sustainable over time. In addition, speed matters because wholesale markets can move quickly. Having the right workflows can mean the difference between capturing an opportunity or missing it.
“Whether it’s retail or wholesale, pricing teams have a lot to manage. The key to success is using the right data and tools to make smarter, faster decisions.”
Q: What are the keys to defining a pricing strategy?
A: Every business approaches pricing differently, but most follow a natural evolution as they refine their strategy. Over the years, I’ve noticed a pattern of four key stages. First, the foundation of good pricing is having a structured approach. You can focus on systemizing your pricing rules—defining clear processes, frameworks, and strategies for price changes.
Once you have the basics in place, the next stage is automation. This means using systems to make adjustments at scale, whether that’s reacting to market movements or rolling out price changes across hundreds of locations.
With automation handling the basics, the third stage is about refining your strategy. Your pricing decisions become more dynamic, incorporating real-time data from your operations and market patterns that allow your business to be more agile and proactive.
The fourth and most advanced stage is where you leverage AI and machine learning to augment your decision making. Instead of just reacting, you can start predicting and enabling dynamic pricing strategies in real time.
“Instead of seeing AI as a futuristic concept, think of it as a tool that gives you a real competitive advantage in today’s pricing landscape.”
Q: Where do you see AI playing a bigger role?
A: AI is one of the most talked-about topics in fuel pricing, but there are still a lot of misconceptions and common myths. In today’s competitive market, pricing decisions need to be made faster and with more accuracy than ever before. AI and machine learning can turn your raw data into actionable insights, helping you respond to changes in real time.
Even though AI is powerful, it’s not magic. Implementing an effective AI-driven pricing system is an iterative process. Every business has unique challenges, market conditions, and data sets, so the best AI models match your specific needs and continuously evolve.
AI isn’t about replacing people. It’s about enhancing human decision making. Your team can use AI-driven insights to help them make smarter, faster, and more confident pricing decisions.
Read Part 2 of “How AI Is Redefining Fuel Pricing: Q&A with Mark Evans”
Connect with Mark on LinkedIn.
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