Gas price disparity

[GMFan]

I live in a small town and there are three gas stations in the center town as there are some state roads that cross through town. The gas stations located here and the Mobil, Shell and Citgo were selling gasoline for ~$4.35/gal. On top of that they charge an extra $0.10/gal when you use a credit card.

Now I never buy gas in town, because I drive 5.5 miles out of town to a more rural area where there is a Gulf and Hess and the gas is $3.95/gal and same price for cash or credit. With my 18.5 gallon tank I save about $8. 90% of the time I am passing by this stretch of road on my way to or from somewhere so I don't even need to make a dedicated trip. Saving $8 on a fill-up gets me 2 gallons and 60 miles extra for driving 5.5 extra miles to buy gas.

The funny thing is, I see loads of folks pulling into the gas stations at town who I assume live in this town yet don't seem to care about paying an extra $0.50/gal. Now am I just a cheapskate or would you drive 5.5 miles to save ~$8. Not only are some folks gladly buying gas in town, but they fill their 20+ gallon tanks in there pickups and trucks. It's costly to pay for convenience I guess.

 

[NHHEMI]

For 2-3 cents more p/ gallon I would fill in town for the convenience. Maybe even 10 cents more if I was in a hurry. However, for that large of a difference I would drive 10-15 miles for cheaper gas. Gas price gouging is a real pet peeve of mine.

 

[JHZR2]

Why? Likely costs. If one lot has $10k in property tax because its in town, and the other pays $1k because it is outside of the corporate limits, how many gallons do they need to sell to cover?

Add on top of that potentially more regulations, perhaps more stuff (does one have a bigger store or something), and the draw and the cost structure may be different.

The 10c CC charge gets me. Places that used to be really good prices, which have now implemented that costing scheme seem to be some of the worst values.

 

[javacontour]

I might put a gallon or two in if I felt dangerously low.

I play that game here as I live near the IL/MO state line. Gas is usually 0.20-0.30/gallon less in MO. I try not to get below a quarter, but if I do, I either take the opportunity to rotate some of my generator gas into the car and then fill the car and the can the next time I'm in MO.

Sometimes I've just put $5 in my wife's car to get her to MO as she runs her tank lower.

 

[mechanicx]

Yeah but usually you pay higher lease costs for a higher traffic area and make up your cost in extra business. Of course if you get a lot of demand you might raise your prices to increase profits even more.

I think independent service station just try to charge as much as they think they can get away with without hurting sells.

 

[RiceCake]

( ( ( X - Y ) * G ) - ( Y * B ) ) / T = R

X - Cost of gas locally.
Y - Cost of cheap gas.
G - How many gallons you will purchase.
B - Gallons you will burn travelling out to refuel.
T - Time it takes to drive out, back, and refuel, in hours.
R - Dollars per hour.

Compare R to your state minimum wage. Enjoy.

 

[JimPghPA]

Originally Posted By: RiceCake
( ( ( X - Y ) * G ) - ( Y * B ) ) / T = R

X - Cost of gas locally.
Y - Cost of cheap gas.
G - How many gallons you will purchase.
B - Gallons you will burn travelling out to refuel.
T - Time it takes to drive out, back, and refuel, in hours.
R - Dollars per hour.

Compare R to your state minimum wage. Enjoy.


Compare R to your state minimum wage AFTER ALL TAXES.

 

[dernp]

Don't drive to Canada to buy gas.

 

[Kuato]

I've driven 8-10 miles to get a cheaper price, usually when I'm headed that way.

In town is always a bit higher; you pay for convenience.

 

[5sfe91]

Since you were passing the cheaper station on the way out I see no harm done you saved money without any extra driving. Maybe others that get gas in town don't go out that way often.

 

[Shannow]

Originally Posted By: JimPghPA
Originally Posted By: RiceCake
( ( ( X - Y ) * G ) - ( Y * B ) ) / T = R

X - Cost of gas locally.
Y - Cost of cheap gas.
G - How many gallons you will purchase.
B - Gallons you will burn travelling out to refuel.
T - Time it takes to drive out, back, and refuel, in hours.
R - Dollars per hour.

Compare R to your state minimum wage. Enjoy.


Compare R to your state minimum wage AFTER ALL TAXES.


I haven't yet found out how much my time is worth when I'm not being paid for my time.

See it in here all the time re IffyLube oil changes..."your time is worth something"...It is, but the time that I spend changing oil is money in my retirement, versus paying an IffyLube guy today with yesterday's earnings.

WRT the enjoyable equation, unless the poster is engaged in minimum wage activities while filling up locally, or has to take time off paying work to fill up, the equation is bunk.

 

[JHZR2]

Originally Posted By: Shannow
I haven't yet found out how much my time is worth when I'm not being paid for my time.

See it in here all the time re IffyLube oil changes..."your time is worth something"...It is, but the time that I spend changing oil is money in my retirement, versus paying an IffyLube guy today with yesterday's earnings.

WRT the enjoyable equation, unless the poster is engaged in minimum wage activities while filling up locally, or has to take time off paying work to fill up, the equation is bunk.



Exactly, I always laugh at these comparisons when the time most people would be using likely want going tobe spent doing something constructive anyway.

 

[mechtech2]

It could be the result of local taxes.
In the Chicago area, over 10% sometimes occurs due to greed and no accountability by local authorities. I have seen over 11% at a White Castle [Porcelain Room].

 

[PandaBear]

My time is worth more than 50c/gal to drive 5-8 miles to get cheap gas. Heck, my commute is only 4 miles each way. Unless I'm going in the direction that will pass the cheaper station I will not go out of my way to get it, I already have a 30mpg car so I should enjoy the convenience and saving of time and money it buys me vs an SUV that I have to drive 5-8 miles to save $5-8.

We see it here too, right when we pass the city boundary the gas would suddenly be 10c-20c cheaper/gal.

 

[zerosoma]

People start getting resentful when you raise the price above other stations in the area.

Unless you're giving free fried chicken with a fill-up. That's always popular in Georgia.