How to tell if you are being gouged at the pump

.....how do you explain stations raising prices on gas that's already in their tanks (and that they've already paid for)?

If the price is going up at the source, then the increase should only hit the consumer when the station's tanks are refilled with the more expensive gas, right?

gas stations have to raise their price so that they can pay for their next shipment at a higher cost. If they didn't raise their prices, they could not afford to by the next shipment

It's invoiced. So they can make the extra money to pay for it by raising the price on that gas.

and see what his situation is. Are you so sure he's raising the price on gas that's already in the tank? Are you so sure he has credit to refill in advance? You think these guys are getting rich from high gas prices?

Personally I think the station owner should be able to charge whatever the market will bear.

We are friendly with the owner of our local gas station. He's considering converting one pump to cash sales only because the credit card surcharge adds several cents to the cost of each gallon. Post Katrina his prices went through the roof, but he was only making a couple of cents on each gallon. I have no reason to question his integrity in the matter. IF he were gouging, I can go to the next nearest gas station and see what he's selling for.

...the gas station owners I know here are billed at a "net plus 15" basis, meaning that payment is due no later than 15 days after the invoice date. That interval is simply too short for them to do what Josh suggests.

A little economic literacy in this country would work miracles, IMO...

It's so much easier to believe a massive worldwide conspiracy, (and blame Bush)

that messy politicians' heads on pikes part.

Also, demand is in the "here and now". Most gas stations make profit on services other than gas (mini-mart, car wash, etc.). If they run out of gas, they don't get customers for those either. If they are selling gas for too cheap, they'll be swamped and then run out.

This is why the huge Pilot gas station off I-95 that USUALLY has some of the cheapest gas in the state ups the price during these crunches. For a couple of weeks post-Katrina they were considerably more expensive than their neighbors by several cents, even more expensive than Mobils on the highway! They are doing it again. Gouging requires either collusion or participation of the consumer. IOW, there's almost always a station or two that have very high prices. They also have no lines at the pumps or the registers inside. Depending on the circumstances, I'll gladly be "gouged" by them!

But, like so with many other things, there can be one who takes advantage.

And those few are what the article is about. It does not blame other owners for the gas prices, nor do I. No doubt 99.99+% of them are honest.

By knowing what to look for price-wise, that rare gouger can find himself without any business, instead of their casting a cloud of suspicion on the honest ones.

Angeline
Speakeasy Moderator
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The pumps have stickers on them that tell exactly what the taxes are on each gallon, federal and state. They also show nearby states' taxes too. I can save almost 20 cents a gallon by riding 6 miles into Virginia for gas.

Cindi