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Originally Posted by stovt001
Oh my God, gtahvit, I hate to be this blunt, but saying the gas station owners are gouging is by far the most incorrect statement someone could possibly make concerning gas prices. Most gas stations make a few cents profit per gallon at best. Often they actually lose money selling gas, and just use it as a loss leader to get people into the convenience store. They make their profits on the food, drinks, and auto-services. Gas prices follow crude prices, but usually lag a little bit. Every gas station will try to keep prices down as long as possible, because raising your price first means no one will come to you. They'll hold out until the increasing losses force their hand, then they'll raise their price. Please, please don't insult the people taking losses just so you can get cheap gas. Those kinds of ignorant statements are just plain rude and inconsiderate.
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Well, if you had thoroughly read my post you would have seen that I recognized that only 4% of a gallon of gas is profit. The rest is cost and taxes. I don't believe for one second that any gas station is loosing money on gas. You mean to say that they sell thousands of gallons of gasoline a day, but will take a loss on that gas to sell a few sodas and candy bars? Think about how many Cokes and Snickers you'd have to sell to make up even a $.01 loss on thousands of gallons of gas. They don't keep that much in stock let alone sell that many. Sorry, but you didn't think this one through.
Quote:
Originally Posted by stovt001
Gas stations charging 25 cents more a gallon than others right across the street isn't the same thing as gouging. Its a poor business move, and I honestly don't know why anyone would go to the unless they have it in their heads that they must have that brand in their tank. I would say that's not gouging since there is a clearly cheaper alternative sitting right across the street. I'm saying on a whole its not right to say gas station owners gouge when I actually think they're the ones getting the worst of this whole thing. They have to fill up their own cars with that more expensive gas, they make little to no profit on selling it, and they often have to take a loss for a while waiting for someone else to raise their price to cover higher costs or else they'll lose business. They're in a very tough business situation providing a service that is quite necessary. While I think its incorrect to accuse the big oil companies of gouging, I don't think such accusations really bother them personally. However, for your hard working small business owner, it is personal and it can be offensive. I guess I just have a soft spot for small business people, but I hate to see them accused of something when they're feeling the same pain we are, if not more.
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Call it whatever you want, it's wrong, and I say when you jack the price up without a relative increase in cost, you are gouging. But, you are right, don't buy from them and they won't do it as easily the next time.
It appears we disagree in two areas.
One: Station owners take a loss on the gas they sell at the pump to get people in the store.
Two: The definition of gouging.