Warning

 

Close

Confirm Action

Are you sure you wish to do this?

Confirm Cancel
PSA
Member Login

Site Notices
Posted: 1/7/2005 11:17:01 AM EDT
I live in Rolla, MO and the gas stations around here are consitantly 5-8 cents more than the other cities around us.  If I go to Springfield or St. Louis or even Sullivan the gas is almost always cheaper.  It's not like there is a monopoly on gas or anything.  

Why would it always be more expensive unless they are trying to make bigger profits?  One day a letter to the editor in the local paper addressed this situation and the next day gas prices dropped several cents per gallon.  Didn't take long for them to go back up, however.  Today, gas went up 8 cents from yesterday.
Link Posted: 1/7/2005 11:17:51 AM EDT
rent at the location, and probably people have more cash in that area?
Link Posted: 1/7/2005 11:20:40 AM EDT
[Last Edit: 1/7/2005 11:21:41 AM EDT by DeadSled]
because Rolla is a dinky ass town and doesn't have the volume of sales to cover expenses that springfield has. produce more sell for less

I used to live in Bolivar and hated every minute of it
Link Posted: 1/7/2005 11:22:48 AM EDT
It is all just supply and demand.

What's wrong with making a profit, anyway? It's not like anyone owes us cheap gas.
Link Posted: 1/7/2005 11:26:59 AM EDT
[Last Edit: 1/7/2005 11:32:56 AM EDT by JIMBEAM]

Originally Posted By redleg13a:
I live in Rolla, MO.



Damn I am sorry to hear that. I lived there 2 1/2 years while attending UMR.

The gas is probably higher because of a local tax or because you are on an interstate highway and they simply charge more because they can.

Link Posted: 1/7/2005 11:28:08 AM EDT

Originally Posted By DonS:
It is all just supply and demand.

What's wrong with making a profit, anyway? It's not like anyone owes us cheap gas.



Didn't say there was anything wrong with it.  I just want to know why it's always higher here than 30 miles down the road at a town that's about the same size as this one.  If their cost is higher and they need to charge more to cover costs, fine.  Nothing wrong with that.  However, if they get gas for the same price as everyone else and their costs are similar (which I admit I don't know what their costs are) why do they always charge more than everyone else?

Back to the original question:  How much per gallon profit do stations usually make?
Link Posted: 1/7/2005 11:29:05 AM EDT

Originally Posted By JIMBEAM:

Originally Posted By redleg13a:
I live in Rolla, MO.



Damn I am sorry to here that. I lived there 2 1/2 years while attending UMR.



When were you here?
Link Posted: 1/7/2005 11:31:40 AM EDT

Originally Posted By redleg13a:
Back to the original question:  How much per gallon profit do stations usually make?



Usually 1 to 3 cents per gallon.

Do you really think that your local stations are gouging?

Then open your own station and sell it for less than them.  You will corner the market.
Link Posted: 1/7/2005 11:33:14 AM EDT
They make a few cent on the gallon.  They make more from pop and sales in the store then on the gas.
Link Posted: 1/7/2005 11:33:37 AM EDT

Originally Posted By redleg13a:

Originally Posted By JIMBEAM:

Originally Posted By redleg13a:
I live in Rolla, MO.



Damn I am sorry to hear that. I lived there 2 1/2 years while attending UMR.



When were you here?



1990 to 1992.
Link Posted: 1/7/2005 11:35:13 AM EDT
Generally, they average a couple cents per gallon. 1-3 sometimes up to 5. However, price fluctuations generally even it out at 1-3.

If one area is higher than another, it is usually due to taxes. You may have a city or other local tax on the sale.

In Florida, Gainesville has the highest prices in the state dute to a tax.
Link Posted: 1/7/2005 11:37:56 AM EDT

Originally Posted By Q3131A:
Generally, they average a couple cents per gallon. 1-3 sometimes up to 5. However, price fluctuations generally even it out at 1-3.

If one area is higher than another, it is usually due to taxes. You may have a city or other local tax on the sale.

In Florida, Gainesville has the highest prices in the state dute to a tax.



Ok, taxes makes sense.  It is consitant so there must be something.  It's just aggrevating.
Link Posted: 1/7/2005 11:38:38 AM EDT
If you are looking into convience stores, I looked into one 7-11 and it was clearing about $50k a year.  So its not like its a huge amount of money they are making.  They have to deal with a lot of theft and spoilage.
Link Posted: 1/7/2005 11:39:17 AM EDT
[Last Edit: 1/7/2005 11:47:32 AM EDT by warlord]
I have some cousins that used to own a ARCO Mini-Mart, they sell sandwiches, soda pop, small convience items similtar to that of 7-11, & beer, and they told me, if they didn't sell the other stuff, they would be out of business in a week. They can't make enough money selling gasoline to cover the rent, utilities, taxes, & help. They told me that they use gasoline as a draw to get people to buy other stuff from them.

redleg13a: most dealers can charge whatever they want, but a penny here or there is not a big deal to you & me, but if you pump 20,000 gals of gas a month......
Link Posted: 1/7/2005 11:43:28 AM EDT
The jobbers are the ones who set the gas prices.
Do a google on gas jobbers.
Link Posted: 1/7/2005 11:46:12 AM EDT

Originally Posted By Old_Painless:
Usually 1 to 3 cents per gallon.

Do you really think that your local stations are gouging?

Then open your own station and sell it for less than them.  You will corner the market.



+1

As a CPA with gas station clients, and my brother in law owning two of them, they sell gas almost at a breakeven in order to get people into their stores to sell the high margin goods and services to them.

Link Posted: 1/7/2005 11:52:31 AM EDT
When your grandad pumped gas in grandma's 1952 Buick there was about 3 cents per gallon margin.  When dad filled mom's 69 Camero he was working on 1.5 cent margin.  Now you pump your own gas after a quick swipe of your credit card and the margin is about .25-.75 cents per gallon for the station owner.

Most likely the station owner doesn't even own the fuel you are pumping & has NO control over the price.  Pumps are linked electronically to the distributer who can adjust prices at will.

The money made at "gas stations" is in the products inside the store.....$2.00 for a Coke & $1.29 for water
Link Posted: 1/7/2005 11:54:11 AM EDT
I used to work at a gas station (Sheetz).  The difference between what we paid for the gas and what we sold it for varied between about 3 cents a gallon and about 14 cents a gallon, the higher octanes having more profit.  
Link Posted: 1/7/2005 12:01:42 PM EDT
[Last Edit: 1/7/2005 12:06:25 PM EDT by DonS]

Originally Posted By Q3131A:
Generally, they average a couple cents per gallon. 1-3 sometimes up to 5. However, price fluctuations generally even it out at 1-3.

If one area is higher than another, it is usually due to taxes. You may have a city or other local tax on the sale.

In Florida, Gainesville has the highest prices in the state dute to a tax.



I believe that here in San Diego, we have the highest gas prices in the US.

Back in the 80s, they shut down most of the independent stations. They couldn't meet the environmental requirements of the county. It is more expensive to build a gas station in San Diego than in LA. It also takes longer for all the permits to be approved, etc., and as they say, time is money. The result is fewer gas stations. And that results in less competition. And that results in higher prices.

To make it worse, there are regulations on fuel additives that differ by location and time of year. Consequently, if there is a gas shortage here in SD (and the resulting higher prices), gas from Arizona can't be shipped here.

And of course, there are high taxes. I believe we pay $0.18 on every gallon to the state, and that doesn't include the fed take. Or the sales tax.

Bottom line: it's all the governments fault.

Edited to say: Bottom line, it is supply and demand and a highly regulated market. The only unfair aspect is due to the regulation and predatory taxes.
Link Posted: 1/7/2005 12:06:43 PM EDT
The real profiteers are the Fed, State and local governments.  They take none of the risk.
Link Posted: 1/7/2005 12:08:01 PM EDT

Originally Posted By DonS:

Bottom line: it's all the governments fault.

Edited to say: Bottom line, it is supply and demand and a highly regulated market. The only unfair aspect is due to the regulation and predatory taxes.



You were right the first time.

High prices are the gov'ts fault.

A TRULY free market drives down prices.

Link Posted: 1/7/2005 12:09:36 PM EDT
not enough
Link Posted: 1/7/2005 12:14:31 PM EDT

Originally Posted By garandman:

Originally Posted By DonS:

Bottom line: it's all the governments fault.

Edited to say: Bottom line, it is supply and demand and a highly regulated market. The only unfair aspect is due to the regulation and predatory taxes.



You were right the first time.

High prices are the gov'ts fault.

A TRULY free market drives down prices.




The government can drive down prices, too. When that happens, the supply dries up as well.

Examples:

1) Price controls on gas during the 70s: gas lines and even/odd gas days result.
2) Price controls on electricity in CA: shifting outages result.
3) North Korea.
4) Cuba.
5) USSR.
Link Posted: 1/7/2005 12:16:25 PM EDT
Very little "profit" margin....

If they are projected to sell 30,000 gallons per month, each gallon has 1/30,000 or their rent, license fees, product fees, etc built in too.

I believe when gas is at $2/gal they are paying about $1.75/gal...that is NOT ALL "profit".

this is from old data from a family friend, the franchise fees and lease amounts may have gone up, but that is the theory.

I say +1 to 1-3 cents "profit".

Link Posted: 1/7/2005 12:23:45 PM EDT
[Last Edit: 1/7/2005 12:24:50 PM EDT by SNorman]
Man, here in Duvall (city of about 3000) on one end of town we have Safeway, they'll have unleaded at 1.80/gal plus you get 3 cents off with your Safeway club card (6 cents off if you've spent over $50 the last time you shopped at Safeway).

On the other end of town, probably 1 mile away, we have a couple stations that are consistently *at least* 10 cents per gallon higher.  So if it's 1.80 at Safeway it's 1.90 or more (a Texaco and Chevron, I think).  It blows my mind why people would go there instead of Safeway.  They're still in business, so I guess people do.
Link Posted: 1/7/2005 12:27:45 PM EDT
Some of the convenience store clients I have operate on a 1-3 cent per gallon GROSS margin, hoping to make it up with cigarette volume rebates, and $2 Coke and $1.29 water, and $3 4 packs of Charmin.  (no wonder we ate 6 digits in bad debt last year from C-stores)
Link Posted: 1/7/2005 12:29:18 PM EDT
Kali-fornia probably has the highest gasoline prices in the USA. The taxes on gas(they go into the general fund) are high, the Kali-fornia legislature mandates to the oil companies how to make the gasoline, they f'cked up by mandating MTBE in gasoline, and 10 years later come back and say oophs becaue the gasoline refineries have to tool up to make the formulations.
Link Posted: 1/7/2005 5:36:36 PM EDT

Originally Posted By redleg13a:

Originally Posted By JIMBEAM:

Originally Posted By redleg13a:
I live in Rolla, MO.



Damn I am sorry to here that. I lived there 2 1/2 years while attending UMR.



When were you here?



I was there in 1980 as a freshman.  Nice campus.
steady
Link Posted: 1/7/2005 5:45:34 PM EDT
Link Posted: 1/7/2005 6:11:22 PM EDT
parents of a girl in my class in high school owned one
they claimed it was 2-3 cents per gallon profit
Link Posted: 1/7/2005 7:02:38 PM EDT
I think it depends on the region.  For example, in Denver you can get unleaded reg for $1.62.  Yes they have more sales and competition.  In the ski areas, over $2.00 is the norm.  40 cents per gal seem like alot to pay for transportation 80 miles or so.

In my town, all gas is the same price.  There is never more than three cents difference that lasts for more than two hours.  Price fixing, anyone?

SRM
Link Posted: 1/7/2005 7:38:35 PM EDT

Originally Posted By SRM:
In my town, all gas is the same price.  There is never more than three cents difference that lasts for more than two hours.  Price fixing, anyone?

SRM



That's the way it is here.  About 30 seconds after one station changes their signs, the rest in town have them changed as well.
Link Posted: 1/7/2005 8:09:26 PM EDT

Originally Posted By Q3131A:
In Florida, Gainesville has the highest prices in the state due to a tax.



 Damned hippy liberals.    
 The roads suck too, totally inadequate.
Top Top