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Old 11-08-2007, 08:56 PM   #2
secondcurve
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WeirsBeachBoater:

Believe it or not, gas stations do terrible in rising price markets. What happens is there are usually two or three stations in close proximity and one station typically holds its price low while the price of gas has increased forcing the immediate competition to do the same, thus compressing margins. Since gas stations have only a few days supply of gas, they are often forced to pay more for their product while the price they are selling the street is slowly increasing. It doesn't sound like it happened in your case, but then again your station could have been holding its prices artificially low for a couple of days prior to its posted price increase. Trust me, gas station owners make a lot more money when prices are declining.
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