When there are multiple gas stations in close proximity, what causes the difference in price?

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Drove past three within half a mile of one another this morning. The small, no name gas station was 27 cents cheaper than the Shell and Quick Chek.

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Anonymous 0 Comments

People have favorite gas stations just like they have favorite stores.

I used to work at a place and about a quarter mile away there was a Holiday and a BP. The Holiday was more expensive, but it was also always more busy, despite it being harder to get to and costing more.

When you walk into the BP the shelves were hardly stocked, the guy at the counter was always crabby, there was a key to get into the bathroom, etc. At holiday I would often go because I also wanted to pick up a snack while I was there, or a drink, or a little breakfast sandwich, etc.

The holiday costed more because – while my car would not be able to tell the difference in the gas – there were more people willing to pay a few bucks more for the experience and better service.

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