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>Gas stations even today don't make money with gas I've heard this a lot, but is this really true? Gas is highly regulated in the U.S. and supposedly a Mom & P
by toephu2 11y ago
>Gas stations even today don't make money with gas
I've heard this a lot, but is this really true?
Gas is highly regulated in the U.S. and supposedly a Mom & Pop gas station's gas is just as good as Shell or Chevron..(because they are inspected yearly by the local county's Weights and Measurements department) But the price difference can be quite large, e.g., 15%+ higher sometimes. Also I'm curious how Costco gas is so cheap? Anyway so who is eating up this difference in price? Shell is making quite a bit off gas then? or is the owner of that particular gas station taking the profit?
- ohsnap 11y agoFor Costco, gas is a loss leader for custom loyalty. People go crazy for saving $4 dollars for gas, even if it means waiting 15min in line.
- ams6110 11y agoIn most areas all the gas comes from the same distribution terminal. Some companies have some proprietary additive blends but in general it really makes very little difference where you buy it (assuming the retailer doesn't have a problem like groundwater getting into the storage tanks, etc).
- toephu2 11y agoexactly, so who is making the extra 10% profit? or it's nonsense that owning a gas station is a low margin business?