I spoke to an attendant at one franchise gas station in Batavia some weeks ago. I asked why several stations of the same franchise in Genesee County have different prices. He said management bases it on what the market will bear in each location, not upon the actual cost of the fuel in the tank truck. When you make the decision to buy fuel at a station you are actually teaching the management what to do next. If the same number of cars line up for $2.79, why drop it? If there is a reduction in customers because they are going to the next station down the road at $2.77, then management will see the wisdom of dropping to $2.77 at the former station, or maybe even a penny less than that to pull customers back.
Someone in the know will tell me that it's more complicated than that, and of course the cost of a tanker truck load of fuel is a major factor in management's decision. Independents may bid on fuel from distributors who follow the same logic - they will charge what the independents are willing to pay, and will drop that cost if purchasers begin to go elsewhere.
It may also be that the gas stations which operate as mini-markets may actually sell fuel as a loss leader, so you will go into the store and pay higher markups for other consumer items.
Whenever I purchase gas at Sheetz along Rt. 15 in Pennsylvania, I am always struck by their lower price and also the high volume of customers inside the store buying sandwiches, etc. The restrooms are very clean, too.
I love the competition that credit unions offer to commercial banks. I have always wondered what the impact would be if there were fuel co-ops in existence in our area, whose purpose would not be profit-making for owners, but profit-sharing with co-op members?
I'd love to see a serious investigative piece on the cost of fuel, with an actual breakdown of how the $2.79 I just spent is allocated in various categories, going all the way from executive salaries to the wages paid to the people working in the oil fields (and at the local gas station).
While I don't enjoy paying higher prices for fuel, and will search out the lowest price I can find, I also have to admit that the $4.00 price being paid last summer was finally adding some strong incentive to our society to take fuel efficiency, alternative energy sources, hybrid technology, car-pooling and mass transit more seriously. In today's world these are not just good ideas, they are also patriotic values, and (I hope) will reduce the need to prepare, fight and pay for wars over oil that put the members of our military at greater risk.
These are the things I am always thinking about when I drive up to the pump.
Excluding the independent stations, the price of gasoline is set by the company Chevron, Exxon, etc.) at a regional level. The station owners have very little say in the matter.
Numerous investigations have been undertaken involving why gasoline is "so high" (which is very subjective in the first place - high compared to what exactly?) Most of the costs associated with the price of gas are government imposed taxes and fees. I know several station owners and on average they make about .02 cents a gallon. The reason gas is more expensive here than in Rochester because this area is at the furthest end of the distribution chain.
By all means, let's move away from being dependent on foreign oil and switch to battery powered cars. That way we can be dependent on countries like Venezuela and Bolivia for lithium. Great plan!
As far as FastTrack on W. Henrietta being cheaper, it's only cheaper if you pay with cash. If you pay with a credit/debit card, it's about the same price as all the area gas stations.
I think the discount you get by paying with cash has to do with a service fee that is incurred if you use a credit/debit card. A service fee that the, in this case, the gas station pays. If you use cash, there isn't a problem.
I came back from Tonawanda earlier today. Average price was $2.67. The lowest I saw was at Delta Sonic on Niagara Falls Blvd, at $2.63 (w/o the car wash).
So much for the state's "zone pricing" law.....it sure goes up fast enough-too bad they don't lower price as fast as they raise it.They have done "investigations" in the past year when WNY was paying high prices than the rest of nation-but of course,they didn't find anything out of whack,so it's business as usual.I was in Ohio Saturday-gas south of Cleveland was the upper $2.20-$2.30 gal. range.Diesel was somewhat closer to NY prices,in the $2.60 range.
Bob - Western NY is at the end of the diesel, gasoline and fuel oil distribution supply line for this region. Numerous media outlets have looked into this and there's nothing nefarious to expose.
(Unless they're in on it as well. Hmmmmmmmmmmmmm.)
Maybe this could be Howard's chance for a Pulitzer!
I can remember, years ago, during the 'gas shortage' being in the Thousand Islands. When we stopped for gas, there were signs all over stating that they wouldn't take credit cards. Gas was, at least, $1.00 a gallon more than it was here in Batavia. When we asked why it was so high, we were told it was high because the gas had to come via the St. Lawrence Seaway.
Forward a few weeks and we were in Detroit for a training session. Stopped to get gas and it was lower than we were paying in Batavia and one heck of a lot less than it was in Messina. We asked why gas was so cheap in Detroit. The answer?
It comes via the St. Lawrence Seaway.
Go figure!
Well, if it's traveling West to East, which is the most likely scenario, that would make perfect sense. Gas certainly isn't being refined off the coast of Massachusetts but there are refineries in the mid-West and south Central parts of the country.
Bud - Of course the main difference between PA and NY gas prices is the state tax. I was actually comparing Sheetz to other PA gas stations along Rt. 15. I think they price it lower because they make it up by being a very busy store selling fast food and other consumer products.
I think the 15% figure you cite, whether independent or oil company-owned, is largely determined by what the market will bear. Even the guys in company HQ must be monitoring sales figures in their various stations and nudging prices. So choosing to go to the cheapest dealer ought to teach management something I would hope! But if more nefarious methods are used, such as collusion or price-fixing, then the market won't be as responsive to consumer choices.
Yesterday I noticed at the
Yesterday I noticed at the mobile station it was $2.72 At the fasttrac on W. Henrietta rd it was $2.44
I know mobile is always higher but almost $.30 is ridiculous.
Lucky for me I work in Henrietta.
i made that same comment last
i made that same comment last week to someone.
I filled up in Henrietta for 2.55 and in batavia/leroy it was 2.79
there is no explaination given.
plus has anyone noticed that all the weights and measures stickers on a lot of gas pumps in Genesee County expired over a year ago?!?
I spoke to an attendant at
I spoke to an attendant at one franchise gas station in Batavia some weeks ago. I asked why several stations of the same franchise in Genesee County have different prices. He said management bases it on what the market will bear in each location, not upon the actual cost of the fuel in the tank truck. When you make the decision to buy fuel at a station you are actually teaching the management what to do next. If the same number of cars line up for $2.79, why drop it? If there is a reduction in customers because they are going to the next station down the road at $2.77, then management will see the wisdom of dropping to $2.77 at the former station, or maybe even a penny less than that to pull customers back.
Someone in the know will tell me that it's more complicated than that, and of course the cost of a tanker truck load of fuel is a major factor in management's decision. Independents may bid on fuel from distributors who follow the same logic - they will charge what the independents are willing to pay, and will drop that cost if purchasers begin to go elsewhere.
It may also be that the gas stations which operate as mini-markets may actually sell fuel as a loss leader, so you will go into the store and pay higher markups for other consumer items.
Whenever I purchase gas at Sheetz along Rt. 15 in Pennsylvania, I am always struck by their lower price and also the high volume of customers inside the store buying sandwiches, etc. The restrooms are very clean, too.
I love the competition that credit unions offer to commercial banks. I have always wondered what the impact would be if there were fuel co-ops in existence in our area, whose purpose would not be profit-making for owners, but profit-sharing with co-op members?
I'd love to see a serious investigative piece on the cost of fuel, with an actual breakdown of how the $2.79 I just spent is allocated in various categories, going all the way from executive salaries to the wages paid to the people working in the oil fields (and at the local gas station).
While I don't enjoy paying higher prices for fuel, and will search out the lowest price I can find, I also have to admit that the $4.00 price being paid last summer was finally adding some strong incentive to our society to take fuel efficiency, alternative energy sources, hybrid technology, car-pooling and mass transit more seriously. In today's world these are not just good ideas, they are also patriotic values, and (I hope) will reduce the need to prepare, fight and pay for wars over oil that put the members of our military at greater risk.
These are the things I am always thinking about when I drive up to the pump.
I live in the Corfu area and
I live in the Corfu area and per yesterday evening, around 11pm:
KK Mart $2.79
Corfu IGA $2.77
Flying J $2.63
TA $2.64
Rez $2.50
I hope this helps someone! :)
Excluding the independent
Excluding the independent stations, the price of gasoline is set by the company Chevron, Exxon, etc.) at a regional level. The station owners have very little say in the matter.
Numerous investigations have been undertaken involving why gasoline is "so high" (which is very subjective in the first place - high compared to what exactly?) Most of the costs associated with the price of gas are government imposed taxes and fees. I know several station owners and on average they make about .02 cents a gallon. The reason gas is more expensive here than in Rochester because this area is at the furthest end of the distribution chain.
By all means, let's move away from being dependent on foreign oil and switch to battery powered cars. That way we can be dependent on countries like Venezuela and Bolivia for lithium. Great plan!
Jim- a big difference between
Jim- a big difference between PA and NY is the amount of tax. But it is very unfair to have a price difference of 15% within a 30 mile range.
As far as FastTrack on W.
As far as FastTrack on W. Henrietta being cheaper, it's only cheaper if you pay with cash. If you pay with a credit/debit card, it's about the same price as all the area gas stations.
I think the discount you get by paying with cash has to do with a service fee that is incurred if you use a credit/debit card. A service fee that the, in this case, the gas station pays. If you use cash, there isn't a problem.
I came back from Tonawanda
I came back from Tonawanda earlier today. Average price was $2.67. The lowest I saw was at Delta Sonic on Niagara Falls Blvd, at $2.63 (w/o the car wash).
Its a nickel more expensive
Its a nickel more expensive at the fasttrac to pay with a credit card.
Try this site..It list all
Try this site..It list all gas prices in any zip code you want
http://autos.msn.com/everyday/gasstations.aspx?zip=14020&brand=statefarm
Dunno how accurate that is.
Dunno how accurate that is.
Thanks Mark! That's a pretty
Thanks Mark! That's a pretty cool tool!
So much for the state's "zone
So much for the state's "zone pricing" law.....it sure goes up fast enough-too bad they don't lower price as fast as they raise it.They have done "investigations" in the past year when WNY was paying high prices than the rest of nation-but of course,they didn't find anything out of whack,so it's business as usual.I was in Ohio Saturday-gas south of Cleveland was the upper $2.20-$2.30 gal. range.Diesel was somewhat closer to NY prices,in the $2.60 range.
Well lets be responsible
Well lets be responsible consumers and shop around...get the best deals...
Lol, all I have to say is
Lol, all I have to say is that I wish I owned oil.
Bob - Western NY is at the
Bob - Western NY is at the end of the diesel, gasoline and fuel oil distribution supply line for this region. Numerous media outlets have looked into this and there's nothing nefarious to expose.
(Unless they're in on it as well. Hmmmmmmmmmmmmm.)
Maybe this could be Howard's chance for a Pulitzer!
It can all be easily
It can all be easily explained by Corporate Greed and Politicians with their palms out waiting for some grease.
I can remember, years ago,
I can remember, years ago, during the 'gas shortage' being in the Thousand Islands. When we stopped for gas, there were signs all over stating that they wouldn't take credit cards. Gas was, at least, $1.00 a gallon more than it was here in Batavia. When we asked why it was so high, we were told it was high because the gas had to come via the St. Lawrence Seaway.
Forward a few weeks and we were in Detroit for a training session. Stopped to get gas and it was lower than we were paying in Batavia and one heck of a lot less than it was in Messina. We asked why gas was so cheap in Detroit. The answer?
It comes via the St. Lawrence Seaway.
Go figure!
Well, if it's traveling West
Well, if it's traveling West to East, which is the most likely scenario, that would make perfect sense. Gas certainly isn't being refined off the coast of Massachusetts but there are refineries in the mid-West and south Central parts of the country.
Bud - Of course the main
Bud - Of course the main difference between PA and NY gas prices is the state tax. I was actually comparing Sheetz to other PA gas stations along Rt. 15. I think they price it lower because they make it up by being a very busy store selling fast food and other consumer products.
I think the 15% figure you cite, whether independent or oil company-owned, is largely determined by what the market will bear. Even the guys in company HQ must be monitoring sales figures in their various stations and nudging prices. So choosing to go to the cheapest dealer ought to teach management something I would hope! But if more nefarious methods are used, such as collusion or price-fixing, then the market won't be as responsive to consumer choices.
thanks everybody,,
thanks everybody,,