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But if one station is charging 3.69 and another is charging 3.39, should I assume that the one charging more actually paid 30 cents more a gallon, or have that

But if one station is charging 3.69 and another is charging 3.39, should I assume that the one charging more actually paid 30 cents more a gallon, or have that much more for expenses? Or are they making an extra quarter gallon? right now I can go buy regular for anywhere between 3.20 and 3.80, for no apparent reason. If the profit margin is really only a few cents a gallon, it seems like there should be a big incentive to simply charge an extra $0.05 a gallon. I've also noticed some stations charge way more for regular, but the same for premium... They just don't have as large a spread, which would in courage people to buy premium. This is an Oregon, too, where there is a unusual situation for gasoline since people aren't allowed to pump their own and it has resulted, for some reason, in significantly fewer filling stations.

danans 7y ago
> But if one station is charging 3.69 and another is charging 3.39, should I assume that the one charging more actually paid 30 cents more a gallon, or have that much more for expenses? Probably a bit of both. Gas is often more expensive in more well off areas, which also usually have fewer gas stations in general, and the rents those stations pay are probably a bit higher too. It's also more near airports, because demand is high for rental car returns. But part of the higher price is a function of your willingness to drive to a poorer or less convenient part of town to fill cheaper gas in your car. As a younger person on a limited budget I would do that frequently. But depending on how far away the cheaper gas is (meaning gas used to get there), and the value of your time spent getting there, you might be better off paying a bit more to fill up closer to where you live. That's what I do now, even though it's a $.20 more per gallon.
- code_duck 7y ago
  The prices can somewhat be explained by rent, leaving the margin low. But if they're charging more in well-off areas, and with this spread, it seems quite likely stations can manage to slip another 10-20 cents in there as a profit margin.

danans 7y ago

> But if one station is charging 3.69 and another is charging 3.39, should I assume that the one charging more actually paid 30 cents more a gallon, or have that much more for expenses? Probably a bit of both. Gas is often more expensive in more well off areas, which also usually have fewer gas stations in general, and the rents those stations pay are probably a bit higher too. It's also more near airports, because demand is high for rental car returns. But part of the higher price is a function of your willingness to drive to a poorer or less convenient part of town to fill cheaper gas in your car. As a younger person on a limited budget I would do that frequently. But depending on how far away the cheaper gas is (meaning gas used to get there), and the value of your time spent getting there, you might be better off paying a bit more to fill up closer to where you live. That's what I do now, even though it's a $.20 more per gallon.

code_duck 7y ago
The prices can somewhat be explained by rent, leaving the margin low. But if they're charging more in well-off areas, and with this spread, it seems quite likely stations can manage to slip another 10-20 cents in there as a profit margin.