Why ARE GAS PRICES DIFFERENT AT GAS STATIONS OWNED BY THE SAME COMPANY BUT ONLY 2 MILES APART?

Answer 1

Oil companies call it "pricing for the market." Prices at any station will always be the highest oil companies think the market will bear. This means that if one of your gas stations less than 2 miles apart is located at a busier intersection, for example, or near a glitzy shopping mall, expect the prices to be always higher there.

Answer 2

There are several reasons...but the 3 most likely are these:

1) One gas station is closer to a highway, high traffic shopping center, or some other facility that generates more traffic, and therefore, more customers.

2) Even though they are the same company, they may not be owned by the same individual. There might be 2 separate owners, or perhaps one is a franchise and one is company-owned.

3) One has been informed of a price increase/decrease, and the other hasn't yet, or just hasn't changed prices yet.

I live in a medium sized city (4th largest in IL) and it's not uncommon to have as much as a 4-5 cent differential in various parts of town, and cheaper yet across the river where the taxes are slightly less.

Hope this info helped.

Answer 3

gas prices differ most likely because the gas stations may be part of the same company but the gas staions have been franchised so the gas stations are owned by different people so there is always the distinct possibility that prices will not be the same

there is also the possibility that they could get there gas in different amounts which would drive up or down the price and also the quality is dependant upon the price

Answer 4

Because alot of gas stations like 7-11 and Citgo's do a mimi-market analasys. Usually a manager will often drive around to the nearest gas stations and report the prices to a corperate location which will respond with a daily price. I worked for the Pantry, Inc. which owns many gas stations in the South East and that is theor exact method of deteminating prices.

Answer 5

It all depends on how much the station paid for a barrell of gas and then they need to turn around and make a profit so if they sold the gas below the price they made it would mean they are loosing profits, so they have to price it above so they inturn make a profit. Also if the store if privately owned they can set the price to be anything, and the price can be different on account of the sales of last month and if they did not meet their quota.

Answer 6

The price of the gas that you pay is decided by the individual that owns the gas station. He/she has already purchased the gas (a whole truckload of it) from the parent company at a set price. How much he/she charges for it is a tradeoff between how much money they can make, vs. how high a price will cause people to not come there to fill up.

Answer 7

oil companies aren't always playing the game right. see the gas stations buy their gas at a set price, but that same gas they bought, a day ago they will raise the price up more, even tho they just bought it at this other price. they do it to make more profit on us, some gas stations do it some dont, so thats why you saw two gas stations with different prices.

Answer 8

depends on location - a station close to a freeway will often boost prices a few cents to take advantage of the convienence factor of being right on the freeway.

in the end, it's basically they charge as much as they can.

Answer 9

It's all about money. I work at one, and all of our stations are different prices.

Answer 10

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