How do gas stations have the same price changes at the same time?
Mar 17, 2019 08:16:46 #
hj
Loc: Florida
Can someone in the petroleum industry (not guesses by everyone else) explain how gas stations all change their prices, up or down, at the same time? Seems like collusion to me.... and they use any excuse to jack the price including rumors on the world stage not facts.
Mar 17, 2019 08:27:36 #
I don't know the answer but it happens here in West Virginia also. When one changes within an hour or two all match regardless of the brand so one could say it is not cost driven.
Mar 17, 2019 08:27:38 #
I don't know the answer but it happens here in West Virginia also. When one changes within an hour or two all match regardless of the brand so one could say it is not cost driven.
Mar 17, 2019 08:29:58 #
I know that's what usually happens, But yesterday evening I was in Muncie, Indiana, and saw regular prices ranging from $2.64 per gallon to $2.09. Any guesses as to which one I bought?
Mar 17, 2019 08:36:54 #
hj wrote:
Can someone in the petroleum industry (not guesses by everyone else) explain how gas stations all change their prices, up or down, at the same time? Seems like collusion to me.... and they use any excuse to jack the price including rumors on the world stage not facts.
I think it might be called, " Staying Competitive"
Mar 17, 2019 08:38:32 #
I thought it was a Pennsyltucky thing. I am quite sure it has nothing to do with Big Oil giving large amounts of cash to Politicians.
Mar 17, 2019 08:42:44 #
Mar 17, 2019 08:46:42 #
Yep, it looks like the days of gas price wars are long gone!
Mar 17, 2019 08:47:12 #
billnikon
Loc: Pennsylvania/Ohio/Florida/Maui/Oregon/Vermont
hj wrote:
Can someone in the petroleum industry (not guesses by everyone else) explain how gas stations all change their prices, up or down, at the same time? Seems like collusion to me.... and they use any excuse to jack the price including rumors on the world stage not facts.
Most gas stations are on the same SAME GAS PRICE network. All the stations are hooked into a central feed. The network changes the price of gas, and if your gas station is connected to the network, your gas price also changes automatically. It is a giant conspiracy against us.
Your best defense against this network is GAS BUDDY. But you must be willing to act fast, once the low price appears on GAS BUDDY, you have to drive like a maniac to get to that station before the SAME GAS PRICE network goes to work to defeat your efforts.
Good luck in your efforts to beat the MAN.
Mar 17, 2019 09:05:36 #
Riggson
Loc: Tucson, Az
Not in the petroleum business but there was a story on the local news about this a few years ago. The distributor that brings in the gas from the refinery sets the price, so if a gas station is part of their network they have to charge the preset price. An individual station (at that time) was earning about 3 to 5 cents per gallon.
Mar 17, 2019 09:16:51 #
Mar 17, 2019 10:53:52 #
A piece of the puzzle, is that four gas stations on four corners of the same intersection will be competitive. The idea is to get you into their station. They sell the gasoline for very little profit, controlled by the distributor. The real profits come from the coffee, Slurpees, chips, soft drinks, etc. In the past, they relied on the garage repairs, etc.
People think that you can hurt the gas station by not buying their gasoline. Not so. If you wanted to hurt a gas station, buy only gasoline.
There's only one gas station that I won't visit; that's Citgo. They're all owned by the Venezuelan government. I will not subsidize Socialism. Just my own tic.
People think that you can hurt the gas station by not buying their gasoline. Not so. If you wanted to hurt a gas station, buy only gasoline.
There's only one gas station that I won't visit; that's Citgo. They're all owned by the Venezuelan government. I will not subsidize Socialism. Just my own tic.
Mar 17, 2019 11:14:11 #
Since my wife has worked where this occurs I'll answer instead of guess.
All gas stations, mini-marts, etc check each others prices (sometimes a couple of times a day) and they have their own philosophy on when to react to a competitor's price change and in turn change their own prices. It's all about figuring out how to stay competitive and make the most profit.
It's that simple.
All gas stations, mini-marts, etc check each others prices (sometimes a couple of times a day) and they have their own philosophy on when to react to a competitor's price change and in turn change their own prices. It's all about figuring out how to stay competitive and make the most profit.
It's that simple.
Mar 17, 2019 13:13:36 #
hj
Loc: Florida
I don't call jumping gas from $2.39 to $2.59 over night being competitive and they all seem to do it at the exact same time within hours of one another. Yes, dropping price would be trying to remain competitive.
Silverman wrote:
I think it might be called, " Staying Competitive"
Mar 17, 2019 13:17:01 #
hj
Loc: Florida
I agree... NO TO CITGO!
pendennis wrote:
A piece of the puzzle, is that four gas stations o... (show quote)
If you want to reply, then register here. Registration is free and your account is created instantly, so you can post right away.