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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 tha
by 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 agoThe 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.