At One Intersection Today

[DUD]

It has 3 different brands of gas. One a BP was $2.69 unleaded regular self serve, 2nd was an Exxon at $2.66 per gallon unleaded regular self serve, 3rd was a Citgo at $2.58 self serve unleaded regular.
I don't understand. Bill

[dlminehart]

With gas prices here at about $3.37 for unleaded regular self-serve, I don't understand those prices either, Bill!

[LCHIEN]

It has 3 different brands of gas. One a BP was $2.69 unleaded regular self serve, 2nd was an Exxon at $2.66 per gallon unleaded regular self serve, 3rd was a Citgo at $2.58 self serve unleaded regular.
I don't understand. Bill

So its around 2.91 for unleaded regular around here. What's your point?
If its the spread of around 11 cents for the prices for equivalent product,
then there are several reasons for it.

Not all producers work with the same efficiency, there may be price differences in crude supply and refinery costs that cause them to price it that way. Even an oil company's crude may vary in prices depending upon what field it came from and the quality of the crude.

The product may come from batches delivered on different days, (I suspect the value of all the gasoline in the storage tanks at the station goes up if the new batch is higher, but if the new batch is lower the the tank retains its previous value) because as we know the price of crude varies from day to day.

Finally the major gas stations are not highly pressured to match prices in price wars anymore, when gas was 0.60 a gallon 10 cents was 16% but now with $3 gas 10 cents is 3% difference. And there's a certain percentage of buyers for whom brand loyalty makes the demand inelastic.

[leehljp]

Price differences at the same location as Bill noted, are usually because of the price of the gas for the tanker that delivered it. I saw a 10 cent drop at one station in a matter of hours and I asked why (although I knew why). The answer is that they charge based on the price from the truck that delivered.

Usually, big price differences means some instability up or down in the market and the prices reflect the change. The one with the latest truck is usually the cheapest or most expensive depending on the heading of prices.

For the most part, prices are not supposed to change for what is on hand until a truck delivers more at a different price.

Ooops, Loring said much of the same thing.

[wreckwriter]

I paid 2.999 for Chevron regular today. Its always that way here, varies 20 cents or more in same area, even same brand, shop for best price unless you need it now.

[RayintheUK]

Ooops, Loring said much of the same thing.

Maybe - but you were polite and non-patronising.

Ray.

[crokett]

My experience is that BP is going to be the most expensive. At least around here the BP stations are consistently 3-5c higher per gallon than their competitors.

[LCHIEN]

Maybe - but you were polite and non-patronising.

Ray.

I guess that was a slap on my wrist.
I apologise to Dud for what I agree sounds like brusque reply.
I really wasn't sure what he was getting at, though. I finally assumed it was the price spread.

[DUD]

Loring
That was what I was talking about was the spread, of course Sam's Club was the cheapest at $2.53, but they are a few blocks away. Bill

[Jeffrey Schronce]

Not all producers work with the same efficiency, there may be price differences in crude supply and refinery costs that cause them to price it that way. Even an oil company's crude may vary in prices depending upon what field it came from and the quality of the crude.

What suprises me is that we don't see greater variance between the major retailers. It would seem natural that one supplier is leaner, meaner, etc and would normally offer a lower price. I understand OPEC, which IMHO IS price fixing, but you would think there would be some natural competition.

Side note : Just read a report a few moments ago that indicates price reductions of up to $.75 per gallon by Sept. Of course there are hundreds of events that could cause that to go sideways . . .

[TB Roye]

Paid $3.22 here in Sacramento to day for unleaded Regular for my Toyota Pick up. The wife's Expedition stay in the garage now a days, will use it to go to Idaho over Memorial day weeked figure 4 tanks of gas for the trip.

Tom

[atgcpaul]

Well, I'm riding my bike to work about 3 days a week now. I paid $3.33 at
Costco the other day. Yikes. In my neighborhood, the price is about $3.55.

Around here the cheapest station, Arco, is always a few cents cheaper but
you can only use debit or cash and if you use debit, you pay a 25 cent
surcharge. When gas was cheaper, you about broke even. Now you may come
out ahead. I just wait until I need to go to Costco.

Paul

[maxparot]

Well, I'm riding my bike to work about 3 days a week now. I paid $3.33 at
Costco the other day. Yikes. In my neighborhood, the price is about $3.55.

Around here the cheapest station, Arco, is always a few cents cheaper but
you can only use debit or cash and if you use debit, you pay a 25 cent
surcharge. When gas was cheaper, you about broke even. Now you may come
out ahead. I just wait until I need to go to Costco.

Paul

I won't purchase gas at Arco(AMPM) here in AZ because of their surcharge, no credit card policy.
I have found that I can always find gas within 2 cent per gallon of their price. Using my credit card I get 2% back on fuel purchases right now that's over 3 cents a gallon and a merchant that offers me the flexibility of offering credit card purchases and no surcharge debit purchases along with low prices deserves my business. Even when gas was sub $2 I'd avoid Arco because of their policy choices.

[DUD]

We are blessed in this area, as We have pipelines bringing the raw material to Memphis, TN, then there is a refinery there. Many different branded semi's pull in there and fill up the tankers and carry them to the stores or stations.

But I am sure that gas will start rising here very soon, it so funny how it can jump a quarter a gallon daily, but only drops a penny or two a day. Bill

[bigsteel15]

Gas War!!!

It's called a gas war guys.
I used to experience them frequently when I lived in BC.
Actually, there is always about 10 cent/litre difference between Greater Vancouver Regional District and Abbotsford, which is the first town outside the GVRD. This is due to the Transit Levy applied to gas within the GVRD.

We don't see them here in Edmonton very often and there are 5 refineries within 5 miles of my house.... Don't get me started on that.