ELI5-How does an individual fuel station in the US decide how much to charge at the pump?

Question

There are obviously state taxes and supply/demand within urban centers to contend with—but is there a basic formula or sorts that gets you to the dollar amount you see per gallon?

In: 5

Answer 1

There has been a standing poker game at Bob’s QuikFil just outside of Jefferson City Missouri and has been since 1923. When Bob is losing, prices go up. As soon as Bob raises his prices, the 24/7 Mart down the street matches the change and this sets off the chain reaction with every other gas station in the country. If you want gas prices to drop, we need to convince Bob to stop trying to draw an inside straight