Winnipesaukee Forum - View Single Post

hazmatmedic · 10-29-2008, 10:11 AM

There are so many reasons why gasoline is higher at one station as compared to the one right next door or even towns/states away. A single investor may own the station who runs it him/herself. They may lease it to another with incentives or commission. A jobber might own the sight and the same scenarios occur. Or an oil company may own the sight with even more scenarios. Each of these types may increase the number of people who get a share of the profits/losses from the sale of gasoline. In addition, when was the site bought, renovated, upgraded? Some dealers have 20 year contracts on the sale of the fuel from their supplier, whether it's from a jobber or oil company. If a station receives a delivery once every 2 weeks or even once a month and the price of gas has changed 25 cents in a single day, hopefully you can see why the price could be higher or even lower. But the difference is, when the price is high, your product moves at a slower rate as compared to a much lower price. Basic economics.

The local competitive market is certainly a key reason for pricing but again not the only one. It really is up to the owner of that business to determine how to price the product. An owner can be held hostage by his/her volume when the price is falling or by a drop off of other revenue generating sources, like a car wash or bakery.

There is so much more, but remember it is not always a rip off. The owner may have expenses you are not aware of and the price of convenience can be higher prices. You have every right to not purchase from any retailer you want. I suggest you excercise that right.

Price fixing does occur at all levels and at all commodities, but a monopoly is not illegal. It generates competition.

10-29-2008, 10:11 AM	#9
hazmatmedic Member Join Date: Jul 2008 Posts: 47 Thanks: 6 Thanked 5 Times in 4 Posts	Gas prices There are so many reasons why gasoline is higher at one station as compared to the one right next door or even towns/states away. A single investor may own the station who runs it him/herself. They may lease it to another with incentives or commission. A jobber might own the sight and the same scenarios occur. Or an oil company may own the sight with even more scenarios. Each of these types may increase the number of people who get a share of the profits/losses from the sale of gasoline. In addition, when was the site bought, renovated, upgraded? Some dealers have 20 year contracts on the sale of the fuel from their supplier, whether it's from a jobber or oil company. If a station receives a delivery once every 2 weeks or even once a month and the price of gas has changed 25 cents in a single day, hopefully you can see why the price could be higher or even lower. But the difference is, when the price is high, your product moves at a slower rate as compared to a much lower price. Basic economics. The local competitive market is certainly a key reason for pricing but again not the only one. It really is up to the owner of that business to determine how to price the product. An owner can be held hostage by his/her volume when the price is falling or by a drop off of other revenue generating sources, like a car wash or bakery. There is so much more, but remember it is not always a rip off. The owner may have expenses you are not aware of and the price of convenience can be higher prices. You have every right to not purchase from any retailer you want. I suggest you excercise that right. Price fixing does occur at all levels and at all commodities, but a monopoly is not illegal. It generates competition.