Gas Price Question
- Thread starter DanC78
- Start date
In Florida there is a minimum profit per gallon. They are likely buying more of it so it is cheaper. The smaller stations pay a higher rate because they have smaller tanks and don't pump as much. Gas does go stale and the stations have to size their tanks accordingly. Costco in Tallahassee for example gets multiple truck loads a day and likely takes the whole approx 9000 gallons the truck holds at a time which makes delivery cheaper (i.e. it's a single truck ride with a single stop vs multiple).
contrary to popular belief all the gas from every station comes from the same source. Additives are the difference between stations.
Yeah, I knew there was a price ceiling and floor, and of course we all know that Costco doesn't have their own refineries. And each state I believe have their own requirements on the quality level of the gas.
So I guess it's like you said. They take a lower margin but sell more volume. they also might not care all that much about being profitable with gas sells. It's more of a way to get people to funnel back in and purchase product. Which I'm assuming is the same play that some of your really shady gas stations use.
There is a Petro in my home down that stays a nickel lower than most everyone in town. They aren't the opposite of Costco for sure. Their gas definitely looks of lower grade when you judge by observing their pumps and station in general. My guess is that they break even and make profit on sales inside the store. This particular place is where we would by our beer on Friday night with out fake IDs when in high school. I'm pretty sure every town has a gas station like the one in trying to describe.
Gas should be filtered before it hits the nozzle at the station. With that said I know many mom and pop shops that are too cheap and will pull the filter. What happens is when the filter gets clogged up the pumps slow down and people get impatient and pump less gas. They pull the filter and all the crap goes right into your tank. The big boys don't do this as they recognize the price of an engine is far greater than some filters. My brother got bad fuel and it caused about 8 grand worth of damage to his truck because of this. I now always get from the big players that pump loads of fuel.
I don't know how it works in Florida, but several years ago there was an article in the Denver Post about gas prices throughout the state. I lived in Vail at the time and they were wondering why the price was so much higher.
In that article it stated that EVERY gas station in the state paid the EXACTLY same price for a gallon of gas regardless of location. The price difference was due to factors at the station... whether it be additives or a higher markup for location... etc. That way owners wouldn't build gas stations closer to pumping stations to get gas a little bit cheaper.
In that article it stated that EVERY gas station in the state paid the EXACTLY same price for a gallon of gas regardless of location. The price difference was due to factors at the station... whether it be additives or a higher markup for location... etc. That way owners wouldn't build gas stations closer to pumping stations to get gas a little bit cheaper.
