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- Why do some gas stations charge less than others?
- Why do some gas stations have different prices?
- Why do gas prices end in 9/10 of a cent?
- Do gas stations owners set their own prices?
- Why are some gas stations so much more expensive?
- Why is Safeway gas so cheap?
- Can a gas station charge whatever they want for gas?
- Why is gas cheaper in the south?
- Does gas differ from station to station?
- Why do gas station prices have fractions?
- How do gas stations determine their prices?
- Why do gas prices have 3 decimals?
- Who regulate gas prices?
- Can gas stations raise prices?
- Why is Shell gas more expensive?
Why do some gas stations charge less than others?
When you see significant price differences between gas stations, it's usually due to an underlying real estate issue -- stations in premier locations pay higher land costs or rents, and can charge a corresponding premium for driver convenience.
Why do some gas stations have different prices?
Gas prices often differ because of three broad factors: taxes, fuel blends and margins. In mid-February 2021, gas prices averaged $2.51 per gallon, according to AAA. ... It boils down to three broad factors: taxes, fuel blends and margins.
Why do gas prices end in 9/10 of a cent?
Gas station owners weren't about to give up their business by rounding up, so they instituted the percentage of a cent to keep prices down. By the 1970s, 9/10 became the standard, as consumers were annoyed by fractional price fluctuations mandated by the government.
Do gas stations owners set their own prices?
Stations that buy and sell their own fuel set the price to whatever they want. It's illegal for owners to conspire on prices, but there are unspoken rules that control the way pricing is decided. When a dealer drops his price, sometimes he is intent on starting a 'price war'.
Why are some gas stations so much more expensive?
In general, stations closer to interstates pay more for land, so prices are going to be higher. In some areas, stations charge more "because they can," Wright said. ... The two main drivers of price are the cost the stations pay, and what their competition is doing.
Why is Safeway gas so cheap?
According to one clerk at a Safeway gas station, many Safeway locations purchase their gas from tank farms such as Kinder Morgan. These farms use less additives in their fuel, which not only reduces the cost of gas, but also lessens the possibility of harming the vehicles engine and clearing fuel injections.
Can a gas station charge whatever they want for gas?
In the US the answer is yes, they can charge whatever price they want for gasoline/diesel, BUT that does not mean that people will purchase from that said station.
Why is gas cheaper in the south?
It's one reason why southern states South Carolina, Mississippi, Alabama, Tennessee, and Louisiana have the lowest gas prices in the country as they are closer to America's oil-refining center along the Gulf Coast -- they benefit from lower distribution costs as the gas doesn't have to travel as far.
Does gas differ from station to station?
The fuel from different filling stations comes from a common source: the "base gas" from a refinery. ... The real difference is the amount of additives that are in the gas, Nielsen says. More additives essentially afford more protection — but they also cost more.
Why do gas station prices have fractions?
A one-cent price swing when gas is selling for 10 cents per gallon meant a 10% change. ... By pricing to a fraction of a cent, retailers could more easily adjust prices to lure customers. But pricing to the 1/10th of a cent didn't mean that the price always ended in 0.9.
How do gas stations determine their prices?
The price of gasoline is made up of four factors: taxes, distribution and marketing, the cost of refining, and crude oil prices. Of these four factors, the price of crude oil accounts for nearly 70% of the price you pay at the pump, so when they fluctuate (as they often do), we see the effects.
Why do gas prices have 3 decimals?
“We have to go way back to when the oil companies were selling gas for, let's say, 15 cents, and then the state and federal boards decided they wanted a piece of that to keep the roads going, so they added 3/10 of a cent.
Who regulate gas prices?
Our rates are regulated by the California Public Utilities Commission, or CPUC, based on three components: Commodity Costs – The cost of the natural gas itself.
Can gas stations raise prices?
Depending on where you live, there can be big price swings between gas stations. And even if the difference in price per gallon may only be a few pennies, it can still add up to hundreds of dollars per year. Even prices from one state to another can vary significantly.
Why is Shell gas more expensive?
Since most end product stations have equal research, they can produce similar additives. The most likely scenarios for Shell gasoline to be more expensive is that their additive is more expensive to add, or that other stations are using the base gasoline from the local distributor refinery.
