Local Speedways no longer competing in fuel prices

[AZjeff]

Sheetz fooled me with their low prices... , but it was just promo pricing for the newly opened store. They opened more around, including one near my work, but that pricing only lasted 4-5 weeks.

Absolutely common tactic to get people used to buying something somewhere. After 4-5 weeks apparently lots of people don't check prices any longer.

I've never seen any stations make any effort to compete with Costco or Sam's since they're member-only fuel stations. The Costco here is $3.43/gallon and the Kroger (literally in the same parking lot) is $3.90/gallon.

What's interesting is the Costco here has 24 pumps and they're busy all the time. I'd say it ranges from 50% in use early/late times to having to wait a couple of minutes for a pump to open in the line you pick. That's a lot of gas that used to be bought somewhere else. It runs around 50 cents/gallon cheaper same as your area. Convenience stores likely can't afford to compete with that.

 

[UncleDave]

Speedway is/was based in the midwest. They've bought many other chains/brands over time but had no idea they went as far as California. What were those stations before, maybe SuperAmerica ?

I've never seen any stations make any effort to compete with Costco or Sam's since they're member-only fuel stations. The Costco here is $3.43/gallon and the Kroger (literally in the same parking lot) is $3.90/gallon.

Great question - I'm relatively new to the area and didn't witness the evolution but Im sure I can find out from the guys at work.

Im an hour from costco so never fuel there, but in the middle of LA costco was the low price leader. long lines on weekends

 

[97prizm]

In our area, the Speedway stations are always the first to raise prices when there has been a decline in prices. They try to get others to 'follow the leader'. And they do.

Then prices begin to gradually decline. And then Speedway jumps back up, starting the cycle all over again. I have observed this pattern for years.

Has it happened on a specific day? Weirdly enough where I live I've been noticing the gas price drop around Friday then almost always go up on Monday night or Tuesday morning.

 

[opus1]

Speedway has definitely gone downhill after 7-11 got hold of them.

Around here the Speedway Effect seems to hit Wednesday or Thursday. This week it was Wednesday, which made me happy that I filled the car on Tuesday. I saved 26-cents by not waiting.

I still use them because I have a number of gift cards to deplete and as a Speedy Rewards member, I get 5-cents/gallon off on gas, and they'll send out additional savings every now and then. Right now I have an extra 10-cents on top of the 5-cents so that will make the next fill-up cheaper. Once the gift cards are gone, I'll be using the local BP or XOM stations because they're usually cheaper when I don't have the extra savings perk.

 

[SC Maintenance]

I looked up Speedway and interestingly it says there 100% corporate owned. Vs 7-11 (who owns speedway) stores are like 80% franchise. So must be corporate edict vs a local owner operator wishing to stay competitive.

I have noticed in the Southeast all the big convenience store like places no matter who they are often have higher price on gas - Spinx, Parkers, the new bigger Circle K, Pilot, etc. The exception being QT to a degree. Cheapest is most often BP or Sonoco.

 

[Lawnman23]

The last time I was in a Speedway, it was still a SuperAmerica

Their overall quality was already nose diving by the time Marathon bought them.

 

[fdcg27]

Costco is not usually the cheapest option in the areas where they have their stores, since other nearby stations normally match their fuel pricing, or Costco is forced to match nearby stations that sell plenty of high markup snacks and drinks and a Kroger or a Speedway or a BP using their loyalty cards often ends up a penny or two cheaper, although Costco is always among the least costly choices for fuel. Remember also that they all pay the same wholesale price for fuel if the station has enough volume to take a full tanker of fuel at least a couple of times a week.
Costco is also serving a different market. People don't stop at Costco for a quick gas and go and maybe a pop.
OTOH, a lot of people will stop at Speedway on their way home from work and buy a little gas along with maybe a pack of smokes and some brews and are in and out in less time than you'd spend waiting in line for a pump at Costco, and buying anything at Costco is not a quick and easy process.
Speedway has not been the low price leader in this area in a number of years, but whenever I drive by one they always seem to have a fair amount of traffic. Costco does as well, but those buying gas are usually planning an hour or two inside the store stocking up for the apocalypse.

 

[Hall]

Absolutely common tactic to get people used to buying something somewhere.

Until a few years ago, "new" gas stations weren't that common. Speedway would rebuild stations in some cases or others would re-brand, but now, we have new gas stations and car washes popping up everywhere. I know "grand opening" prices are a thing but this Sheetz did it for months and had me thinking, "Yes ! They'll keep Speedway in check !".

What's interesting is the Costco here has 24 pumps and they're busy all the time.

Costco isn't nearby so I don't get there that often, but Sam's is always pretty busy. Most days you have to wait in line for a pump. I did notice that when gas was over $4/gallon, they weren't competitive or the typical 50c lower, only about 10c lower.

Has it happened on a specific day?

No, it happens anytime. If there's anything in the news that's negative in relation to oil, they'll jack it up. I've seen them jack it up 70c in a single jump ! It had been slowly dropping, 5c at a time or so, for almost 2 weeks recently, then a certain waterway was closed again and they jumped from $3.29-ish to $3.99.

 

[JayhawkRoy]

Costco is not usually the cheapest option in the areas where they have their stores, since other nearby stations normally match their fuel pricing, or Costco is forced to match nearby stations that sell plenty of high markup snacks and drinks and a Kroger or a Speedway or a BP using their loyalty cards often ends up a penny or two cheaper, although Costco is always among the least costly choices for fuel. Remember also that they all pay the same wholesale price for fuel if the station has enough volume to take a full tanker of fuel at least a couple of times a week.
Costco is also serving a different market. People don't stop at Costco for a quick gas and go and maybe a pop.
OTOH, a lot of people will stop at Speedway on their way home from work and buy a little gas along with maybe a pack of smokes and some brews and are in and out in less time than you'd spend waiting in line for a pump at Costco, and buying anything at Costco is not a quick and easy process.
Speedway has not been the low price leader in this area in a number of years, but whenever I drive by one they always seem to have a fair amount of traffic. Costco does as well, but those buying gas are usually planning an hour or two inside the store stocking up for the apocalypse.

--Longest wait I have at Costco is five minutes in KC Metro area, even during the lunch crunch. Even less in places like Springfield, MO where they have twice as many pumps (newer store). The store we use most has Sam's Club across the highway so that competition keeps the gas cheapest in that area.
--Wife goes in with list and is done in about 30 mins or less. I get gas while she shops. and park to wait. Next visit will be longer because I am going to test drive their optical shop for new eyeglasses.
--When we were in Atlanta and in Honolulu, the lines were out of sight. I purposefully did not use Costco gas due to the lines.

 

[Dave Hess]

RaceTrac and WaWa are the least expensive gas near me.

 

[levi]

Has it happened on a specific day? Weirdly enough where I live I've been noticing the gas price drop around Friday then almost always go up on Monday night or Tuesday morning.

Can't say any specific day. But Speedway always leads the charge back to higher prices.

 

[bullwinkle]

I looked up Speedway and interestingly it says there 100% corporate owned. Vs 7-11 (who owns speedway) stores are like 80% franchise. So must be corporate edict vs a local owner operator wishing to stay competitive.

I have noticed in the Southeast all the big convenience store like places no matter who they are often have higher price on gas - Spinx, Parkers, the new bigger Circle K, Pilot, etc. The exception being QT to a degree. Cheapest is most often BP or Sonoco.

When Speedway wants to spin off a non-performer, it gets rebranded as a Marathon. QT (assuming Quik Trip?) has come to town, they force “Greedway” to lower gas prices to compete. Seems weird to see a Speedway for only $3.33 & one a couple a miles away for $3.89…

 

[SC Maintenance]

When Speedway wants to spin off a non-performer, it gets rebranded as a Marathon. QT (assuming Quik Trip?) has come to town, they force “Greedway” to lower gas prices to compete.

Speedway is owned by 7-Eleven Holdings and from reading there all corporate owned.

Marathon is owned by Marathon Petroleum corp and the majority are franchises.

I don't believe your statement could be true based on this? Perhaps it happened to a station or two by happenstance.

I agree that QT is generally quite good.

 

[RaymondP]

In the metro Detroit area Speedway used to be the best deal. Maybe it still is sometimes. When this whole "Straights" debacle started I had to pay $6.32 a gallon for Premium. Highest I have ever paid for a gallon of gasoline in the US. Fortunately, it is now settling in around the $5.00 mark at Speedway last time I filled.

 

[tmorris1]

The last time I was in a Speedway, it was still a SuperAmerica

Their overall quality was already nose diving by the time Marathon bought them.

Stop and Rob... They are a good place to get robbed or shot. Some are nice but depends on the area but most seem to be run down and not kept up. Especially the old SA ( SuperAmerica) stations. I drove by one leaving work for years and saw guys cuffed across the hood of a squad car quite often.

 

[scrllock]

You correlated engine timing with TT fuel, so yeah, you did.

You do realize that all gasoline has to meet standards set by the EPA ? Any station can get "bad gas" at some point (even Sam's and Costco stations have had it happen), but Speedway still gets their fuel from Marathon (trucks, at least) and does enough volume that their gas is always fresh.

Didn't say that, but ok.