Can anyone please explain to me how the price at one gas station can differ from another one down the block?

Answer 1

Station sets their own prices, stations closer to highways or farther away from competition offer higher prices.

Answer 2

Gas prices are controlled mostly by supply & demand and also competition with nearby stations. Most of the time the prices will be the same at all gas stations in a specific area, and they use something used in economics called "elasticity" which is the willingness to use that product. Since gasoline usage is inelastic, meaning people will most likely buy it regardless of the price, they can fluxuate the price on a whim. Most of the time however, it's to try to one-up another station nearby in order to get their customers by lowering their price by a cent or two or not raising it as quickly as other stations.

Answer 3

Each dealer sets his own price depending on what he has to pay wholesale, the profit he wishes to make, the clientele he services, and the competition from other stations. If all the prices were the same, state could come after the owners for price collusion. However if all stations paid the same wholesale there is no problem, You may suspect as I do that we are getting gouged!!

Answer 4

It is just the competition between the two stations, even though it is quite ironic that the same company owns both of them reguardless what ever the name of the gas is that they are selling,lol. I am still trying to figure out why gas in NY is EXTREMELY HIGH compaired to every other state in the U.S. lol. My friends back home down south still do not believe I am paying over $2 a gallon,lol.

Answer 5

Supply and demand. One corner may have a higher volume of traffic, so they know they can get more customers. Or maybe there are other gas stations on the same corner...more competition usually leads to lower prices.

Answer 6

Because we live in a free market society where businesses are allowed to set any price they wish for their products.
This is not only true for gasoline, but virtually all goods and services. For example, visit two different grocery stores (e.g. Safeway and Krogers) and you will find diferent prices for the exact same products (e.g. Twinkies, Rice Crispies, Kleenex).

Answer 7

depends on the frequency of the customers, and some offer better quality gas=more expensive.

these two places by my house have a 20+ cent difference, on the other hand the more expensive place is full service, so it gets alot of business in the winter.

but most of the time it's just incompetence of the adjusters...........................................or what vincent said below....that's a 10 point worthy answer. better than mine

Answer 8

Different companies have different suppliers, different processes and different delivery systems for gasoline.
Think of it this way...if you opened up a restaurant, you will set your price for a hamburger based on your rent, utilities, supplies, payroll and a reasonable profit. All businesses, even all franchises of similar businesses, have different factors affecting their prices.

Answer 9

Competition for your hard earned Bucks $$$$$$$$

Answer 10

transport cost and different brand