<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, 1998 and is
qualified  in  its  entirety  by  reference  to  such  Financial  Statements.
</LEGEND>
<MULTIPLIER> 1
       
                                     
<PERIOD-TYPE>                           YEAR
<FISCAL-YEAR-END>                       JUL-31-1998
<PERIOD-START>                          AUG-01-1997
<PERIOD-END>                            JUL-31-1998
<CASH>                                      157513 
<SECURITIES>                                     0
<RECEIVABLES>                              1195653 
<ALLOWANCES>                                418796 
<INVENTORY>                                 377097 
<CURRENT-ASSETS>                           1826038 
<PP&E>                                     5650682 
<DEPRECIATION>                             1531245 
<TOTAL-ASSETS>                             6697980 
<CURRENT-LIABILITIES>                      6964108 
<BONDS>                                      60000 
<COMMON>                                     99527 
<PREFERRED-MANDATORY>                            0
<PREFERRED>                                      0
<OTHER-SE>                                 (425655)
<TOTAL-LIABILITY-AND-EQUITY>               6697980 
<SALES>                                   32266419 
<TOTAL-REVENUES>                          32266419 
<CGS>                                     30869987 
<TOTAL-COSTS>                             30869987 
<OTHER-EXPENSES>                           4871455 
<LOSS-PROVISION>                                 0
<INTEREST-EXPENSE>                          502054 
<INCOME-PRETAX>                           (3744056)
<INCOME-TAX>                                     0
<INCOME-CONTINUING>                       (3744056)
<DISCONTINUED>                                   0
<EXTRAORDINARY>                                  0
<CHANGES>                                        0
<NET-INCOME>                              (3744056)
<EPS-PRIMARY>                                 (.43)
<EPS-DILUTED>                                 (.43)