Originally Posted by Flyby1206
How about someone come in and start-up a LCC style gas station? Sell gas for 2 bucks a gallon as opposed to $2.57? I would drive a few extra minutes to pay 57 cents less per gallon. Probably not possible unless you can find a way to get the oil directly from the ground through the refinery process and into your store without going through exxon/mobil?
Gas stations aren't like legacy airlines..there's no fat to trim. Margins are so slim at the retail level there is no possible way those guys could reduce their prices and still afford to buy their own stock. The only stations that can sell a little cheaper are ones with lower rent (ie poor location) or ones that have mini-marts that subsidize the gas prices. The only ones who can charge outrageous prices above their own cost are those that are the only game in town. There's also a few medium sized towns that are notorious for price-fixing.
Last edited by rickair7777; 04-19-2006 at 11:15 AM.