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

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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?

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Anonymous 0 Comments

Most stations are not independently owned and or operated. Therefore, those decisions are typically made at a corporate level and passed down to them to implement.

So the question really becomes how does corporate come to that number? And THAT is usually determined by the usual factors: What the competition is charging, expenses in oil production, delivery, etc.

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