I have never, ever understood this. Gas is for the most part is a simple commodity. Sure, some prefer a premium brand (like Shell) to a cheaper one (like ARCO), but I can’t for the life of me figure out why there is such a wide variance even within a single mile or two of a city (and amongst the same brand!) I would think that supply and demand would reign supreme here. It’s the same stuff.
You get that one gas station that charges $0.10 less than all the others in the area and the lines are out to the street.
So where are supply and demand?
In: 38
A few possibilities
1 Gas stations in a good area (for them) can charge more. For example a gas station right off the highway can charge more cause they know people driving on the highway that need gas will stop at the closest station even if it’s more expensive.
2. All gas is not the same. The gas could be lower quality (less additives that are good for car engines) and/or the gas station is doing something illegal like setting the pumps to stop at .95 gallons while they say they gave you 1 gallon
3. The gas station could be intentionally loosing money on the gas they’re selling to get more people to come inside and buy other stuff
I wouldn’t trust the one gas station in town that is way cheaper than the rest.
Latest Answers