Quote:
Originally Posted by ken0042
Yes, and I agree the refinery should not be so quick to jack up the price that they charge the stations. What I read yours to say was that the stations should not charge more right away; as they bought the gas for the lower price. So blame the refineries for jacking up the price and likely colluding; not the gas station. (Unless it is owned by one of the refineries.)
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So a few things. I know that gas stations barely make any money at all off fuel - pennies on the litre (most is made off convenience sales as opposed to actual fuel or on volume).
However, what I don't understand is why the prices all seem to go up in unison. I know that lots of franchisees are locked into purchasing from a single company - so they are forced to raise their prices when their cost rises: Shell, Esso, Husky, etc, but how are those companies able to boost the prices of gas they sell to the station at the same time? Don't they all have different refineries that they manufacture their fuel out of? Shouldn't those companies sell fuel to the stations at different prices?
If that was actually the case, you would likely see prices more static since an owner with 3 stations on their corner would want to sell volume if they have a supply advantage over their neighbors.