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are they paying more for their gas. Ha Ha Ha, I think they pay the same only charge more.

2007-05-28 09:20:03 · 4 answers · asked by madman 1 in Cars & Transportation Commuting

4 answers

The prices charged at any gas station are calculated according to the same formula -- supply and demand. If a station is charging more than another, it's because for whatever reason (less competition, more cars in the area, better facilities, better location, etc) they CAN, and people will pay it.

P.S. I'm pretty sure those "foreigners" are American citizens.

2007-05-28 20:54:04 · answer #1 · answered by nevergonnaletyoudown 4 · 1 0

hmm, you see there is the thing, the prices really depend on the gas station itself, not the actual ownership of the gas companies. Here is now the market works. The gas company buys oil or tries to find some of its own. Then it takes the oil to be refined into gas and then they sell it exclusively to the franshisee (the gas station you go to) now depending on the market area, the cost of shipping, the price of the gas itself (which fluctuates based on the cost of oil) the gas station charges a certain amount. You see, its not really that the gas company says "where going to charge rape today" its that the gas station owners have to pay for all of the gas while keeping up other costs such as upkeep, running whatever shop is located in the gas station, and paying franchise fees, and are forced to raise the prices of their gas in order to turn a profit. That said, any company could charge a high amount for gas, so its not really a foreigner thing (because all of these companies have bases in America that are almost independent of the rest of the company) but rather a gas station owner's struggle to stay in business. But hey, atleast he is getting a break on the cost of the gas, if he was out of franchise, he would easily have to pay 80% more for the same amount of gas, hence why you rarely see privately owned gas stations anymore.

2007-05-29 00:32:23 · answer #2 · answered by ddhboy1000 2 · 0 0

Hey, dude, I don't think ANY gas station owners are twisting arms to get customers but since pump prices are posted
Ha Ha Ha, I think some people think they are still living in the Age of Cheap Oil.

2007-06-01 01:53:15 · answer #3 · answered by Anonymous · 0 0

then just buy from your american friends

2007-05-28 16:30:28 · answer #4 · answered by bullwinkle3006 4 · 1 0

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