All the stations in the same area are in cahoots so there isn't any "gas wars" and they keep the price as high as possible for as long as possible. Who can prove they aren't colluding? Nobody tellsc them what to charge, but maybe there should in times like this.
How is the price of gas calculated?
- Thread starter Chevelle3221
- Start date
But why would they? No two stations have exactly the same infrastructure and labor costs, the selling price includes those variables.
Zee09
$200 Site Donor 2023
Been that way here at times for years. TT and generic all the same price. However when the prices skyrocketed recently it changed.
Competition is strong with the highest ever Sunoco now competing with and beating the cheapest stations. Weird.
Competition is strong with the highest ever Sunoco now competing with and beating the cheapest stations. Weird.
The major price fixing occurs at the refinery level. The refineries keep capacity tight by exporting refined products. With all refineries running at 100%, selling everything they can make regardless of the price, there's no incentive for them to compete with each other.
It seems like for 49 weeks out of the year they make half a penny per gallon in profit. The other three weeks, they make 35 cents.
Like any capitalist business, they make hay when the sun is shining.
If you think it's aggravating, open your own gas station.
Seem a bit touchy - did I say it's aggravating? You or someone you know own a gas station?
Sounds like you approve of price goudging. You got a link that proves they only make half a cent per gallon in "normal" times?
I can't speak to a specific figure, and documentation i might see to that regard is always marked as " confidential, internal company use only"etc..Seem a bit touchy - did I say it's aggravating? You or someone you know own a gas station?
You got a link that proves they only make half a cent per gallon in "normal" times?
but it's not much at all, if not just break even.
now, you can call this "Collusion" if you want, but the operations I've worked for have been similar:
meijer since 1998, not full time gas station, just cross trained to fill in as needed, though there have been a few years that I spent more time at the Station than in the main store
briefly in 2003-4 at a Corporate BP station in Columbus (the Meijer i was at there didn't have a gas station, so there was no conflict)
Both companies have/had to do a Competitor Price Check once or twice a Day, usually on first shift.
Meijer does it twice daily, between 6-9am, and between 1-3pm. we have a set list of 4 other stations that we have to drive to, and write down their pump prices.
FROM THE PUMP.
no websites.
in our case it's 2 Speedway's, a Circle K, and a Casey's. 11mi Loop, and we get paid mileage. takes about 30 min.
we enter those prices into the computer, and Corp makes the pricing decisions.
around here Speedway seems to set the price that everyone else reacts to and matches, up or down. (It's Called the Speedway Effect, it's real, look it up.)
I was tempted to start my own thread, but all the major points seem to have already been covered here.
I'm curious what variables are responsible for gasoline price spreads and/or a lack thereof?
Currently in my neighborhood in North Dallas, everywhere seems to be priced at $2.89 per gallon. A week ago prices were spread between $2.47 and $2.99...
Those filling stations who were at $2.99 last week are now down to $2.89... And this who were at $2.47 seemed to have raised their prices... To $2.89!
It might not be price collusion, but if it walks like a duck, looks like a duck, and quacks like a duck... I'm gonna bet its a duck!
I'm curious what variables are responsible for gasoline price spreads and/or a lack thereof?
Currently in my neighborhood in North Dallas, everywhere seems to be priced at $2.89 per gallon. A week ago prices were spread between $2.47 and $2.99...
Those filling stations who were at $2.99 last week are now down to $2.89... And this who were at $2.47 seemed to have raised their prices... To $2.89!
It might not be price collusion, but if it walks like a duck, looks like a duck, and quacks like a duck... I'm gonna bet its a duck!
twouvakind
Site Donor 2024
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Interestingly around here all the prices used to be the same - or very close and you knew which would be higher and which not and not enough to worry about where to get gas. In the last year they have been all over the map - like 20 or 30 cent spread so you have to pay attention. Several new and bigger stations have been built, so it might be that - actual competition? Don't know.
Because they make their profit on memberships, not from selling stuff---including gasoline.
Asking again: Are there any mechanisms that could explain the periodic harmonizing of prices within a small range? And then the inverse, where prices seem to spread out across a range of up to 40% per gallon?
In my small mountain town there are 4 gas stations. One sells some kind of off brand gas and only sells 87 octane. Another sells off brand gas and I don't know the prices as I only buy top tier gas. There are a Shell and Chevron station about a block apart and they are in collusion, their prices on all three grades match to the penny every day.
Now when I go "down the hill" about 35 miles to the nearest city, gas at major intersections and/or right by freeway onramps from top tier sellers is usually $0.40 a gallon cheaper. And I have identified an Exxon and an Arco station that are a few blocks away from the freeway that sell gas for $0.80-$0,90 a gallon cheaper than I can buy in my town. That's a LOT.
When I lived in San Diego I noticed gas was on average $0.20 per gallon more than it was up in Orange County. One day during one of the numerous gas crises that occurred in the last 30 years a local news reporter got somebody from one of the suppliers to admit off the record that gas prices in San Diego were higher because people there were more affluent and could afford it. If you headed east to the depressed desert towns like El Centro or Mexicali the gas was cheaper even though they had to haul it longer distances to fill up the starion's storage tanks.
So besides actual costs, some suit in a nice office somewhere is also making a "what the market will bear" decision regarding prices.
Now when I go "down the hill" about 35 miles to the nearest city, gas at major intersections and/or right by freeway onramps from top tier sellers is usually $0.40 a gallon cheaper. And I have identified an Exxon and an Arco station that are a few blocks away from the freeway that sell gas for $0.80-$0,90 a gallon cheaper than I can buy in my town. That's a LOT.
When I lived in San Diego I noticed gas was on average $0.20 per gallon more than it was up in Orange County. One day during one of the numerous gas crises that occurred in the last 30 years a local news reporter got somebody from one of the suppliers to admit off the record that gas prices in San Diego were higher because people there were more affluent and could afford it. If you headed east to the depressed desert towns like El Centro or Mexicali the gas was cheaper even though they had to haul it longer distances to fill up the starion's storage tanks.
So besides actual costs, some suit in a nice office somewhere is also making a "what the market will bear" decision regarding prices.
I just paid $3.889 per gallon for 91* wannabe premium at Costco! Under $4 for premium! Happy days are here again!
Anybody wanna buy a nice, slightly used Tesla Model 3 creampuff?
Anybody wanna buy a nice, slightly used Tesla Model 3 creampuff?
Will to take little to no profit on sales of gasoline.
They do huge amount of volume : No 1 - They never get stuck with expensive inventory , No 2 -They get the best pricing wholesale.
