Comments on: Prices are lower all around us, what gives?! http://www.thegasgame.com/2008/09/20/prices-are-lower-all-around-us-what-gives/ Keep track of gasoline prices, oil prices, future gasoline prices, future oil prices, see predictions, get price prediction, find gasoline prices, see if you're getting gouged, find news about diesel prices, ethanol prices, and refinery maintenance and refinery shutdowns. Tue, 07 Feb 2012 16:59:14 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Lonnie http://www.thegasgame.com/2008/09/20/prices-are-lower-all-around-us-what-gives/comment-page-1/#comment-1790 Lonnie Wed, 24 Sep 2008 03:00:36 +0000 http://www.thegasgame.com/?p=1058#comment-1790 Here in Kalamazoo its 3.75.. Battle Creek is 3.85.. Why is that? Here in Kalamazoo its 3.75.. Battle Creek is 3.85.. Why is that?

]]> By: Retailer http://www.thegasgame.com/2008/09/20/prices-are-lower-all-around-us-what-gives/comment-page-1/#comment-1785 Retailer Tue, 23 Sep 2008 13:11:15 +0000 http://www.thegasgame.com/?p=1058#comment-1785 Brian: The "price zone" situation that you are referring to only applies to stations that are owned by an oil company and leased to a dealer. The dealer pays monthly rent and whatever they decide to charge him for gas deliveries (not actual rack prices). In a way it makes sense, real estate prices and taxes are going to be different in different parts of a big city and from city to city. They should charge more in the areas that cost more to be in. The real question is if they should charge more per gallon or in rent. Rent seems more fair to the dealer. But, we don't have that problem in Michigan. There are very few stations that are owned by oil companies and leased to dealers. I can't even think of a station like that, but I know there are a few in Detroit. The oil companies want as little to do with the retail part of gasoline as they can. They prefer to only deal with companies like ours referred to as Jobbers that own and/or supply multiple stations. That way, we deal with 99% of the problems and rarely have to call them. We only see someone from the oil company at a station less than 2 times per year. Brian: The “price zone” situation that you are referring to only applies to stations that are owned by an oil company and leased to a dealer. The dealer pays monthly rent and whatever they decide to charge him for gas deliveries (not actual rack prices).

In a way it makes sense, real estate prices and taxes are going to be different in different parts of a big city and from city to city. They should charge more in the areas that cost more to be in. The real question is if they should charge more per gallon or in rent. Rent seems more fair to the dealer.

But, we don’t have that problem in Michigan. There are very few stations that are owned by oil companies and leased to dealers. I can’t even think of a station like that, but I know there are a few in Detroit.

The oil companies want as little to do with the retail part of gasoline as they can. They prefer to only deal with companies like ours referred to as Jobbers that own and/or supply multiple stations. That way, we deal with 99% of the problems and rarely have to call them. We only see someone from the oil company at a station less than 2 times per year.

]]> By: brian mcbee http://www.thegasgame.com/2008/09/20/prices-are-lower-all-around-us-what-gives/comment-page-1/#comment-1784 brian mcbee Mon, 22 Sep 2008 22:29:40 +0000 http://www.thegasgame.com/?p=1058#comment-1784 you were asking why grand rapids is higher than everyone else well i am not sure if you know this or not but i read a online report they did when they investigated gas prices and how they are set the refinerys set the price according to demand and they have "price zones" a zone can be several gas stations in a small area or as few as 1 gas station most oil/refinery companys have about 150 to 200 price zones nation wide thats why here in my area (st louis mo)the gas is 3.69 in fenton which is south of st louis but only 3.59 in north st louis the rack prices can have several small(+or-.10 to .20 cents) variances over a large metropolitan area depending were the actual gas station is the refinerys/oil companys say they have to do this to keep the volume within a certan range to maxamise profits in my opinion its a type of price fixing because the refinerys controll this price and individual gas stations have no say in this you were asking why grand rapids is higher than everyone else
well i am not sure if you know this or not
but i read a online report they did when they investigated gas prices
and how they are set
the refinerys set the price according to demand
and they have “price zones”
a zone can be several gas stations in a small area or as few as 1 gas station
most oil/refinery companys have about 150 to 200 price zones nation wide
thats why here in my area (st louis mo)the gas is 3.69 in fenton which is south of st louis but only 3.59 in north st louis
the rack prices can have several small(+or-.10 to .20 cents) variances over a large metropolitan area depending were the actual gas station is
the refinerys/oil companys say they have to do this to keep the volume within a certan range to maxamise profits
in my opinion its a type of price fixing because the refinerys controll this price and individual gas stations have no say in this

]]> By: Sue http://www.thegasgame.com/2008/09/20/prices-are-lower-all-around-us-what-gives/comment-page-1/#comment-1776 Sue Sat, 20 Sep 2008 20:44:54 +0000 http://www.thegasgame.com/?p=1058#comment-1776 Lowell is ALWAYS lower than me (Rockford) and I am always higher than G.R. The Mobil station 2 miles north of me (14 Mile & Northland Dr) is ALWAYS 10 cents cheaper than Meijer, BP (131 & 10 Mile) and downtown Rockford. Lowell is ALWAYS lower than me (Rockford) and I am always higher than G.R. The Mobil station 2 miles north of me (14 Mile & Northland Dr) is ALWAYS 10 cents cheaper than Meijer, BP (131 & 10 Mile) and downtown Rockford.

]]> By: Matt http://www.thegasgame.com/2008/09/20/prices-are-lower-all-around-us-what-gives/comment-page-1/#comment-1774 Matt Sat, 20 Sep 2008 17:45:04 +0000 http://www.thegasgame.com/?p=1058#comment-1774 I was up north of Muskegon on Friday and at the town of Rothbury it was 3.78 a gallon. I was up north of Muskegon on Friday and at the town of Rothbury it was 3.78 a gallon.

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