Gas Station Price Gaps

[genchan]

Is anyone else seeing huge price gaps between gas stations recently? Ususally the prices are within 10 cents in my area, but this past week there is a difference as muchas 40 cents a gallon on what gas stations are charging.

[JanH]

I'm wondering if it has something to do with independent owners and the big companies. One may have to charge more than the other? I don't know how it works either. Maybe the big stores like walmart buy more often and in bigger bulk so they get more price changes on their supplies.

[sweeps]

The price gaps tend to happen when gas prices are moving very quickly like they are now. (Fortunately that direction is down right now.) It's my understanding that gas station owners have to wait for the new price from the corporate office before they can change it. One gas station may get the new price quickly while another is still waiting to receive an update. I've seen differences of more than 20 cents between gas stations right across the street from each other.

[JanH]

So that's how it works. Always wondered.

[disneysteve]

I've posted about this at another board. I agree that right now the gaps are bigger than usual. The station closest to our house was $2.15 the other day. The station directly across the street, not more than 30 feet away, was $2.41, a difference of $.26. Now one is a brand name (Shell) and the other is an independent, but the gap isn't usually that large. What amazes me is that people keep going to the Shell station, though not nearly as many as go to the US Gas across the street.

[shelbylovesmelby]

Originally Posted by Sweepsplayer

The price gaps tend to happen when gas prices are moving very quickly like they are now. (Fortunately that direction is down right now.) It's my understanding that gas station owners have to wait for the new price from the corporate office before they can change it. One gas station may get the new price quickly while another is still waiting to receive an update. I've seen differences of more than 20 cents between gas stations right across the street from each other.

My dh worked @ a gas station years ago & he said that they can only change the price of the gas once a day. They usually changed it when a fax came in or when their delivery came in. Either way in my state they have to keep the posted price up for 24hrs before they can change it.

[disneysteve]

Originally Posted by shelbylovesmelby

My dh worked @ a gas station years ago & he said that they can only change the price of the gas once a day.

New Jersey has the same law.

[debtfreeme]

in a former life i worked for a oil/gas company, wew had to do the daily report of stations near us (usually 6 or 7) and then the company told us to raise or lower. often took a wile for copr to make up their minds. this particular MAJOR company we the leader in raising prices, they always made the bigger jumps and caused others to raise around us. i hated it.

[debtfreeme]

we could change as much as 4 times in a single day!

[disneysteve]

One thing I've noticed with prices lately is that the spread between regular, mid-grade and premium is larger than it used to be. Around here, it was always 10 cents between each grade, so like $2.00 for regular, $2.10 for mid and $2.20 for premium. Now, it is $2.00 for regular, maybe $2.15 for mid and $2.35 for premium. It doesn't affect me at all as I use regular. Just something I noticed.