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Why do gas prices...

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Old 1/26/08, 07:49 AM
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Why do gas prices...

change so much within the same city?

I live in dallas and by my school gas was 2.76 per gallon, but in a different part of town it was 2.96 per gallon. And this was at the same brand gas station. I dont understand how there can be this much difference in price in the same city.
Old 1/26/08, 09:10 AM
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Simple. Because they can.

By the way, congrat's on being able to find it under $3.00.
Old 1/26/08, 09:20 AM
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Originally Posted by hatchttu
change so much within the same city?

I live in dallas and by my school gas was 2.76 per gallon, but in a different part of town it was 2.96 per gallon. And this was at the same brand gas station. I dont understand how there can be this much difference in price in the same city.
Each station owner can set his own price in a free market.
If he can sell all the gas at a higher price, why not?
Think about it, the prices you mention aren't even 10% different.
That can't even be considered price gouging.
When I was a young driver, gas went from $0.35 to $0.60 in a couple of years (a 75% increase).
There was a station in Boston charging $0.99: that is price gouging.
Old 1/26/08, 10:27 AM
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Gas stations that are located with a competitor right across the street or intersection supposedly get a discount to help them compete with other stations....not sure if true or not but a station owner I once knew told me that.
Old 1/27/08, 09:21 PM
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From what I understand, the gas companies themselves (ergo Exxon, Chevron, etc) sets the "recommended" price for each gas station in the zone they are in.
Old 1/27/08, 09:54 PM
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3.27 here in NY
Old 1/28/08, 04:04 AM
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I also noticed gas prices seem to be higher in the high crime areas too, maybe due to theft or cost of extra security.
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