Toby

Yesterday I bought gas for $1.25 at Costco. Based on oil price it should be that price or lower everywhere. It seems like the retailers forget to lower it assuming the per barrel cost is pushed thru to them.

marine73 Loc: Modesto California

I have been told that the price per gal is determined when the fuel is delivered to the facility that will be dispensing/selling it to the public. In other words the tanker that comes in to replenish the facilities underground storage tanks tells the operaters that for this many thousands of gallons of 87 octane or 97 octane your selling prices is Lets say 1.25 for 87 and 1.35 for 97 octane. They then have to reset all the pumps to reflect the new selling price. This is why you will see tankers at Costco early in the mornings or at name brand stations you may see them late at night.

The selling price will only be 2 or 3 cents above the price that they are paying for a tanker full of the different octanes of gas.

fantom Loc: Colorado

I remember about nine or ten years ago I was somewhere in Wyoming, north of Medicine Bow, and passing through a very, very small town that wasn't much more than a gas station/store and post office and half a dozen boarded up buildings. I decided to top off my gas tank cuz it was maybe 90 miles north to the next town and it might not have a functioning gas station---and also because this station and store was so old that the pump had those gas flow meters with the window so you could watch the gas flow, or whatever it is they do. I wanted to see the meter operate.

The gas cost somewhere between $6-8/gal. I forget exactly how much. Naturally I mentioned the price of the gas to the ancient proprietor. He said what he pays for gas for his station is so expensive that he drives over 60-70 miles one way south into Laramie to get gas for his personal vehicles, and saves a bundle doing this.

To me this pretty much confirms what you were saying about the margin on gasoline. He said he only runs the station as a service for his customers who stop in his store to buy milk, beer and cigarettes and he planned to shut things down soon. Reminded me of the song with the phrase, "...and another piece of America is lost."

Haenzel Loc: South Holland, The Netherlands

Yes, of course, no problem. All mentioned is available on line. I hope it is for a good cause... ;)

banjonut Loc: Southern Michigan

Gas is $1.39 here. I don’t understand. Gas here is typically above the National average.

marine73 Loc: Modesto California

With the Costco App I can check to see what the gas prices are at any Costco that sells gas and also check store hours. It can also be used to enter the store. You just have to pull up the part with your photo.

Toby

After reading some of the responses and re-reading my post I realized it seems to imply that the stations are gouging the public. I did not mean to imply that. I know their margins are thin. I should have jokingly said that the oil companies were slow to notify the retailers. It's funny, there is a mile stretch of highway with 5 or so stations with prices varying as much as .60 per gallon for a few hours until the others get caught up. Since they now all have electronic signs it is easy to change prices. I have had prices change when I drove in before I could get out of the car and start pumping.

njarendt Loc: wisconsin

Some stations due gouge and some chains such as Kwik Trip seldom like lowering their price but are quick to increase. (Their own manager told me that.) And you are right - stations across the street form each other many times have radically different prices. IN Madison, WI for years the service station association dictated prices although they did it quietly so as not to attract attention. At one point their members agreed to charge a minimum of 8 cents per gallon above the minimum mark up price. Found that out when one of their members let it slip. Minimum mark up laws benefit the large retailers and penalize the family businesses.

fantom Loc: Colorado

Sounds like illegal price fixing to me.

marine73 Loc: Modesto California

Anyone Remember the gas wars?

njarendt Loc: wisconsin

Oh yes I do any of us older than 65 should remember it I can remember 19 cents a gallon on nickel beer night.

marine73 Loc: Modesto California

I was just a kid and remember when it would get down to 10 cents. I think that was the lowest that I ever saw it.