Fill it up

[Cow Poke]

Fine. When the price starts to drop then they can immediately start dropping the price at the pump because, after all, the prices are more about what the stations expect to be paying -- which will be less.

But has anyone ever seen that happening?

They only tend to drop when one of the competing stations in the area decides its time to increase traffic* again.



*traffic to their location for gasoline, that, while you're filling your tank, you'll buy a 96oz slurpee, some gas station hot dogs and a bag of ice.

[Stoic]

To a large extent, there's the "Toilet Paper Shortage" principle.

A) There's a reason to believe gas prices will increase
*) Rogue tells everyone, "Fill em up while you can still afford to."
2) Lots of people rush to purchase gasoline before the increase
C) The sudden increase in demand lowers supply
IV) Gas prices are nudge higher
5) Prices increase
#) Rogue complains about prices going up more than necessary, without any trace of irony
F) Goto A

Added a few steps for you.

[Stoic]

Fine. When the price starts to drop then they can immediately start dropping the price at the pump because, after all, the prices are more about what the stations expect to be paying -- which will be less.

But has anyone ever seen that happening?

The price is set as high as the market will bear. Welcome to capitalism.

[Cow Poke]

The price is set as high as the market will bear. Welcome to capitalism.

Yes.

[Cow Poke]

Yes, within reason --- often they want their fuel prices to be low enough to lure you in to their specific location so you can pay exorbitant prices for bread and other things..

[Cow Poke]

Added a few steps for you.

It is 100% Rogue's fault - on that we agree.

[rogue06]

They only tend to drop when one of the competing stations in the area decides its time to increase traffic* again.


*traffic to their location for gasoline, that, while you're filling your tank, you'll buy a 96oz slurpee, some gas station hot dogs and a bag of ice.

Back in the 80s I passed a station going to work where they were busy changing the prices on their sign.

I had to leave to go do something or another and when I passed the station they were back out there raising prices again.

I ended up stopping for lunch and when I returned from the various things I had to do (and lunch), as I went past the station three hours later... Yup. You guessed it. They were raising prices a third time that day and it wasn't even 2PM.

That's something that's hard to forget, and I've never seen anything even remotely like it when the price of oil had dropped. Typically you'll hear about it on the news and then a couple weeks later it begins trickling down.

[mossrose]

1.26 per liter * 3.78541 liters per us gallon = 4.77 per us gallon


If those are Canadian dollars, then you need to divide by 1.21 to get us dollars

4.77 / 1.21 = 3.94 us dollars per us gallon

I understand the difference with the exchange rate, thanks. Canada is still paying way more than the States right now. My province currently is paying the least.

Here is a chart that lists current prices across Canada. Please note that BC is currently paying 1.50/litre.

https://www.gasbuddy.com/can

Figure that one out.

[mossrose]

The national average is currently $2.97 so we're effectively now only a dollar less a gallon than Canuckistan

You are paying "only" a dollar less compared to Alberta, which is the price I gave here. Take an average from the chart I posted in my previous post and that dollar amount might increase some.

[rogue06]

You are paying "only" a dollar less compared to Alberta, which is the price I gave here. Take an average from the chart I posted in my previous post and that dollar amount might increase some.

Oh yeah? Well, one of the periods in my post is actually the digital equivalent of a microdot which specifically declares "mileage and prices may vary."

[Stoic]

Back in the 80s I passed a station going to work where they were busy changing the prices on their sign.

I had to leave to go do something or another and when I passed the station they were back out there raising prices again.

I ended up stopping for lunch and when I returned from the various things I had to do (and lunch), as I went past the station three hours later... Yup. You guessed it. They were raising prices a third time that day and it wasn't even 2PM.

That's something that's hard to forget, and I've never seen anything even remotely like it when the price of oil had dropped. Typically you'll hear about it on the news and then a couple weeks later it begins trickling down.

I suspect the reason for the difference is that there are a lot of drivers who don't really shop around for gas. If everyone buys the cheapest gas available, there should be just as much downward pressure on prices when demand is lower than supply as there is upward pressure when demand is higher than supply.

But drivers who aren't price-sensitive tend to shield those stations that raise their prices too fast, or lower them too slowly.

[Cow Poke]

I suspect the reason for the difference is that there are a lot of drivers who don't really shop around for gas. If everyone buys the cheapest gas available, there should be just as much downward pressure on prices when demand is lower than supply as there is upward pressure when demand is higher than supply.

But drivers who aren't price-sensitive tend to shield those stations that raise their prices too fast, or lower them too slowly.

Which often happens when traveling, and you hit the closet gas station to the freeway. Everybody knows there are cheaper prices "down the road" away from the main highways, but too many people are in a "let's fill up and get back on the road" mindset.

[rogue06]

I suspect the reason for the difference is that there are a lot of drivers who don't really shop around for gas. If everyone buys the cheapest gas available, there should be just as much downward pressure on prices when demand is lower than supply as there is upward pressure when demand is higher than supply.

But drivers who aren't price-sensitive tend to shield those stations that raise their prices too fast, or lower them too slowly.

Convenience does have a lot to do with it. This place used to be the last chance to get gas before going down the interstate to Atlanta from the main east-west route through the city immediately north of it (Marietta). And of course, the first one coming back from Atlanta for the traffic (majority) going right.

The thing is, and I'm very price conscious, I just haven't seen anyone who doesn't immediately raise prices significantly in anticipation of higher costs, or delay lowering the prices and then slowly in tiny amounts, when they expect lower costs.

[Stoic]

Convenience does have a lot to do with it. This place used to be the last chance to get gas before going down the interstate to Atlanta from the main east-west route through the city immediately north of it (Marietta). And of course, the first one coming back from Atlanta for the traffic (majority) going right.

The thing is, and I'm very price conscious, I just haven't seen anyone who doesn't immediately raise prices significantly in anticipation of higher costs, or delay lowering the prices and then slowly in tiny amounts, when they expect lower costs.

A few price-conscious drivers aren't going to make much difference. The amount of business a station loses by raising prices too quickly, or lowering them too slowly, is negligible compared to the increased profits they get from all the drivers who either aren't paying attention or can't be bothered to do something about it. (The stations also lose out on a lot of profit if they raise prices too slowly, or lower them too quickly.)

[Cerebrum123]

Kind of why I posted this. To give everyone here a chance to get some gas before you need to take out a second mortgage in order to do so.

Thanks for doing so btw, my parents were able to do so before the price got hiked too much.