<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from Penn Octane
Corporation's  Annual Report on Form 10-K for the year ended July 31, 1997 and
is  qualified  in  its  entirety  by  reference  to such Financial Statements.
</LEGEND>
<MULTIPLIER>   1
       
                                     
<PERIOD-TYPE>                           YEAR
<FISCAL-YEAR-END>                       JUL-31-1997
<PERIOD-END>                            JUL-31-1997
<CASH>                                        31142
<SECURITIES>                                      0
<RECEIVABLES>                                453101
<ALLOWANCES>                                  53406
<INVENTORY>                                  795797
<CURRENT-ASSETS>                            1560010
<PP&E>                                      4448839
<DEPRECIATION>                              1263691
<TOTAL-ASSETS>                              5496367
<CURRENT-LIABILITIES>                       3630925
<BONDS>                                     1112833
<COMMON>                                      81693
<PREFERRED-MANDATORY>                             0
<PREFERRED>                                    2700
<OTHER-SE>                                   668216
<TOTAL-LIABILITY-AND-EQUITY>                5496367
<SALES>                                    30367134
<TOTAL-REVENUES>                           30367134
<CGS>                                      29718734
<TOTAL-COSTS>                              29718734
<OTHER-EXPENSES>                            3407769
<LOSS-PROVISION>                                  0
<INTEREST-EXPENSE>                           239431
<INCOME-PRETAX>                           (2922659)
<INCOME-TAX>                                      0
<INCOME-CONTINUING>                       (2922659)
<DISCONTINUED>                                    0
<EXTRAORDINARY>                                   0
<CHANGES>                                         0
<NET-INCOME>                              (2922659)
<EPS-PRIMARY>                                 (.48)
<EPS-DILUTED>                                 (.48)