THE Gas Station Thread (merged)

[billyk]

Ever notice that all gas stations price their gas within a few pennies of each other? I just drove 20 miles & passed 12 stations & nobody was more than 3 cents in price difference. It seems that as soon as someone increases their price the others follow. What a business! billyk

[Tyler_JC]

Ever notice that all gas stations price their gas within a few pennies of each other? I just drove 20 miles & passed 12 stations & nobody was more than 3 cents in price difference. It seems that as soon as someone increases their price the others follow. What a business! billyk

They absolutely do compete!

That's why the differences in prices are so low.

The profit margin for retail gasoline outlets is only a few cents a gallon.

One might go so far as to say retail gasoline in densely populated neighborhoods is a perfectly competitive market.

[kjmclark]

Ever notice that when one lowers their prices, the others seem to follow quickly afterward as well? Funny how people notice when the prices go up at similar times, but not when they fall the same way.

I suspect what Billyk really meant, because it's what most people mean, is "Why is it that no one around here has gas as cheap as I want?" People have funny ideas about what competition means.

[jasonraymondson]

The average gas station makes 3.2 cents per gallon of gas.

They make more money off that mountain dew that you buy then they do off you filling your tank.

This is why they are not more competitive.

[Tyler_JC]

The average gas station makes 3.2 cents per gallon of gas.

They make more money off that mountain dew that you buy then they do off you filling your tank.

This is why they are not more competitive.

You have it reversed.

Lots of players charging the same price means that they ARE competitive.

Gasoline stations are price takers, not price makers.

[Keith_McClary]

There are probably many different brands of gas stations in your area. Do you think there are as many refineries supplying their product?

I think you will find the gas stations are all getting their product from the same (nearest) source at the same wholesale price,

[jasonraymondson]

There are probably many different brands of gas stations in your area. Do you think there are as many refineries supplying their product?

I think you will find the gas stations are all getting their product from the same (nearest) source at the same wholesale price,

That would be correct. I have seen the caseys gas truck fill up the Ayerco gas station.

[Plantagenet]

If you're looking for the cheapest gas stations, check this out

map of where the cheap gas is

Good luck!

[Keith_McClary]

If you're looking for the cheapest gas stations, check this out

map of where the cheap gas is

Good luck!

Notice how the price differs over state boundaries - any "free market" bozos want to explain that?

[Tanada]

Do a comparison of the gasoline taxes on each side of those state lines.

[Keith_McClary]

Do a comparison of the gasoline taxes on each side of those state lines.

Detroit has high gas taxes?

[TWilliam]

I think you will find the gas stations are all getting their product from the same (nearest) source at the same wholesale price,

That is, in fact, most often the case. 'Branding' is typically accomplished at a central distribution point, where 'generic' gasoline is blended with the various additives that comprise a particular company's unique formulation, usually directly in the truck. The 'cheap gas' stations sell 'generic' gasoline with little or no additives, which is why their prices are often significantly lower than the 'big name' brands.

And incidentally, talk to any (honest) station owner and they will tell you that at best the gasoline sales cover their overhead. It's strictly a traffic generator...

[Tanada]

Do a comparison of the gasoline taxes on each side of those state lines.

Detroit has high gas taxes?

In Michigan you have the fed gas tax everyone everywhere pays, a 19 cent flat fee state tax per gallon, a .5 cent remediation fund fee for cleanup of abandoned or contaminated sites and after you add all those to the gasoline you get to pay 6% on the total for sales tax. For a $3.00 gallon of gas you have about 45 cents straight taxes and fees plus 17 cents sales tax, about 62 cents.

The people who shold be Pissed Off are the ohio residents, they get fuel from the same Detroit refinery have a straight 28 cent state tax but still pay the same price at the pump we do. When I was young we always filled up on their side of the border if we happened to be down there for some reason, nowadays the prices are in lockstep.

[Plantagenet]

If you're looking for the cheapest gas stations, check this out

map of where the cheap gas is

Good luck!

Notice how the price differs over state boundaries - any "free market" bozos want to explain that?

Different states have different amounts of taxes on oil.

Only a bozo wouldn't know that.

[Plantagenet]

Here's info on current U.S. state tax levels.

2007 state gasoline taxes

The amount of state tax varies by over 20 cents per gallon across the U.S. The level of state taxes tends to be similar in different regions, to stop people from buying gas just across the border in a neighboring low gas tax state, as Tanada pointed out, but there are definite state-to-state differences. On a regional basis, gas taxes are lowest in the south (where gas prices tend to be the lowest in the U.S.) and gas taxes are highest in the west (where gas prices are highest in the U.S.).

[frankthetank]

I live near the borders of WI/MN/IA and i can drive 10 minutes and usually get gas 10cents cheaper a gallon (not really worth it, unless on empty). Iowa is usually cheaper then MN.

[Keith_McClary]

If you're looking for the cheapest gas stations, check this out

map of where the cheap gas is

Good luck!

Notice how the price differs over state boundaries - any "free market" bozos want to explain that?

Different states have different amounts of taxes on oil.

Only a bozo wouldn't know that.

I'm just surprised that Michigan, birthplace of the US car industry, would have high gasoline taxes. Do they still make cars there?

[Tanada]

If you're looking for the cheapest gas stations, check this out

map of where the cheap gas is

Good luck!

Notice how the price differs over state boundaries - any "free market" bozos want to explain that?

Different states have different amounts of taxes on oil.

Only a bozo wouldn't know that.

I'm just surprised that Michigan, birthplace of the US car industry, would have high gasoline taxes. Do they still make cars there?

With the huge corporate and individual tax burdens in this state industry has been seeking the exit for decades. The last 6 years under our Canadian governess have been particularly brutal.

[wxman]

There are also some state laws that prohibit undercutting (I know MN has one). The theory is that they don't want a big conglomerate to come in, like a Walmart (who can afford to sell at a loss), and put prices so low that they drive smaller places out of business. Then the bigger place would have a monopoly on the area and raise prices significantly.

[mattduke]

The cheapest gallon of gas in town is going for 25 cents — with a catch.

Gary Mallicoat, the owner of the Exit 14 Shell station off of Interstate 5, is offering one gallon of gas in exchange for quarters dated 1964 or before.

http://www.mailtribune.com/apps/pbcs.dl ... /804050306