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Discussion Starter #1
I've been wondering this for a while, and the last 3 days have really made me notice.

3 days in a row, the gas prices have changed here. It went from 1.75 to 1.69 to 1.79.

Now, my question is : Don't gas companies pay for the fuel as they buy it??? So we (the consumer) should only see the prices change whenever the company has to buy fuel from the supplier. I know the gas station doesn't get refilled on fuel everyday, so why should they change the prices everyday? If anyone can explain to me how this works, I'd appreciate it, because it's getting pretty ridiculous around here.
 

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its all done by what the competitors are doing.

We have a place that guarantees cheapest gas within five miles, and they are forever beating the place across the street by one penny.

Gas prices are determined months in advance by the way, the prices on crude you are watching now are going to be your gas price at the pump several months down the road.

I just buy my gas tax free from the indians, and the owner of the station told me that all of his gas is purchased from canada, and that no middle eastern gas is used in his stores. I pay probably 30 cents less per gallon than a store off the reservation.


JH
 

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Discussion Starter #3
Well, I'm not supposed to pay taxes on post, but somehow, even without the taxes, they are only about a cent or two cheaper than here in town.
 

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Formerly known as lfteyechicken
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ok, here is the deal, I know all about this issue because I work for QuikTrip which is a major gas marketer in several areas of the U.S. every gas station that sells gas, that is the majority of their sales, gas...major c-stores make a decent profit off of inside sales, but no where near the sales of gas, so obviously, gas is where the money is. as someone stated before, prices depend a lot on the competition that is located within a 5 mile radius of said store. now here is where it gets tricky...When the price of Oil barrels go up, obviously gas cost goes up, and companies must raise the price of gas to make a profit.

Here is the interesting part, for obvious reasons, when gas prices jump up, people tend to either (a.) pump less gas or (b.) pump lower grade gas, therefore gas marketers lose money because of less product being moved, when the price goes down on oil barrels, gas marketers usually do not drop prices drastically because they try to make back profit they lost when gas prices shot up, companies make a few more cents than they normally would. Now most companies will occasionally drop prices drastically when barrell prices are low in order to drive more gas/inside sales, but then you will see them shoot right back up to normal price. Or when you see the price fall drastically (say .10 cents a gallon) and those prices remain constant for an extended period (I.E. a week) then that means the barrel prices have fallen enough to where the gas can be sold at that price and still earn back profit that the said store lost when gas prices were higher. The key in the gas market is making money, not sticking it to the customer. SO...here is your lesson for the day boys and girls, lost revenue is why gas prices will jump ten cents a gallon overnight, but ont drop one or two cents a gallon per day. (BTW, most busy/large c-stores that have a lot of pumps, a lot of buisness will typically recieve two gas shipments a day, one for regular/mid-grade, and one for premium.

Another interesting fact, several large companies (i.e. Kroger, Sams club, BJ's, Costco) have begun to davel in the gasoline buisness, the reason these companies can sell gas at such a reduced rate is because there buisness is not dependant on gas sales, they would make more than enough money to support the buisness on inside sales, so sellling gas for them is just added profit, not a neccesity, where as, c-stores are totally dependant on gas sales, if a c-store does not pump gas, it will fail. So, to end some rumors I have heard of wholesellers (koger etc...)selling cheap gas, that is just not true, their gas is not watered down, or anything the like, they just dont require that profit to suceed.

Sorry for the book I have written, but ever since working for QT, I have obtained mass amounts of knowledge about how gas prices work.
 

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great post and it all makes sense. That explains why a place like sams club or walmart sells cheap gas, but a truck stop is always a few cents higher.
 

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Well my company changed prices only as our cost changes. Normal time at a single price is two weeks, minimum 1 week, sometimes we'd go a month without changing.

However, we don't try to battle it out for the lowest price, infact we are often the highest price, yet we do the most business of any station.
 
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