I live on a road where there are three gas stations directly connected to one another. Right in a row. Two of them are usually pretty close. The third one, a Shell, is always like 5-10 cents more than the other two. I always wonder how this works out for them.
ETA: Which brings up another question in my opinion. I can maybe understand the first two being next to each other. But why on earth would the third guy say to himself. “Ya know what this 100 yard stretch of road needs? A third gas station!”
I’ll be that the Shell gets the customers who were hoping that the third station would be cheaper, and then realized that they won’t get home without buying more gas NOW.
Maybe he was first, and the other two were built later?
I don’t know how that would work. When I worked in a gas station, we always had to order a full tanker and there weren’t any ‘leftovers’. Sometimes we would be able to split a load with another station, but all the gas was still accounted for. Which brings up another good point, the driver isn’t the one who sells the gas, it’s done through the oil company (in our case Black Hills Oil) and the driver just brings a bill of lading.
The commentator above who said that gasoline is fungible is exactly correct. I worked on a gasoline carrying pipeline system many years ago. This is what was called a “common carrier”: it would pipe any gasoline for anyone at a published price. Most shippers would ship their gasoline what was called “common code” because it was cheaper. Common code meant "I’m giving you X barrels of gasoline here and I want to pick up X barrels of gasoline over there. It DOESN’T HAVE TO BE THE SAME GASOLINE I GAVE YOU. So most shippers wouldn’t get back the gasoline they actually refined.
As a side note, it also lead to some interesting situations: although a little bit rare, it WAS possible to pick up your gasoline at its destination before you actually gave it to the pipeline at the source!
I always find it remarkable that the vast majority of the time, a cluster of gas stations in the same general area (whether big chain, small or independent) all manage to sell gas for virtually the same price.
If there’s an outlier it’s usually a station selling considerably more expensive gas (maybe because it contains Superscrub Miracle Additive or somesuch). Some motorists go there anyway for latte or sushi.
And yes, lower prices are sometimes associated with higher ethanol content.
Naw, they are RIGHT beside each other. You can drive from one’s lot to the next to the next without going on the road. You can see all their prices in one glance.
Well, there had a to be a third guy at some time. Why he decided to go there is beyond me. Wouldn’t shock me if they were all owned by the same guy and use a common gas tank or something.
I doubt the mom & pop stations get a better deal than the bigger guys except in rare cases. What you might be seeing is the fact that they sell less gas. Maybe they bought it 1 month ago for $2.99 and marked it up to $3.09, and they haven’t sold it all yet. The big guys might get a truck every day or two, so if wholesale prices have risen their price will wind up higher than the mom & pop. Of course that can work the other way, if the mom & pop buys high and wholesale prices fall it might take them even longer to sell the gas.
I’m not an expert, but I don’t think this is how it works. I remember hearing that, when a new batch of gasoline is purchased, the price is immediately adjusted to the new purchase price, regardless of how much gasoline is left over in the tanks. If the old price was lower, then they make a little bit extra on the “blended” tank contents. If the old price was higher, they make a little bit less on the blended tank contents. Since they are continually adding new gas over time, the amount of profit balances out.
When I was growing up, there was a station near where I worked that did something like that, and their prices were always at least $0.10/gal cheaper than other area stations (keep in mind gas was around $1 - $1.25 back then)
They used to take the “switchover” gas from the pipelines. The way it was explained to me was that the various chains would send their gas thru the pipelines, and then when it switched to the next “brand” there was no way to confirm when one started and the other ended, so you’d have a bit of “switchover” gas that might be a mixture of both. This station (and other independents like him) would buy it cheaper than the name brand gas.
Ooh, ooh, something else I can use my pipeline scheduling experience to comment on!
The pipeline system I worked on would pump unleaded gas, middle grade gas, premium gas, diesel, and jet fuel. One of the VERY important things of running the pipeline is that the liquid HAD to be pumped fast enough to induce turbulent flow within the pipeline. This kept the “switchover” section as mentioned by lips_obsession fairly small. With turbulent flow, there would be minimal mixing between the 2 batches. You NEVER wanted laminar flow to happen. Imagine this scenario: you have the liquid in the pipeline moving slow enough to have laminar flow. So everything in the pipeline is moving smoothly in the same direction without any “swirling” as you get in turbulent flow. What happens is the liquid at the outside of the pipe is actually moving slightly slower (due to friction) than the liquid at the center of the pipe. So what happens is that you get a huge plug of liquid from the center of the pipe from the subsequent batch encroaching on the previous batch. This is a Very Bad Thing, and you could ruin a LOT gas, diesel, or jet fuel this way.
Another interesting thing that relies on turbulent flow are the air fans at the entrance of grocery stores. You’ve probably experienced this. Some grocery stores have very large openings (without any doors) at the front of the store. They will have large fans pointing down at this entrance. These fans are running fast enough to induce turbulent flow in the air at the opening, minimizing the mixing of the (say) hot air outside with air conditioned air inside.
I know exactly the type of fan that you’re referring to, (I’ve installed a few of them over the years) but I can’t recall ever seeing one being used in lieu of doors. All of the ones that I’ve ever seen were primarily used to keep flying insects (mainly flies) outside.
They were always used in conjunction with some type of door, and most of the ones that I’ve seen were installed at the entrances to kitchens, warehouses and cold storage areas. The ones that were in use at cold storage areas and warehouses ran continuously and were used in combination with vinyl ‘strip doors’, which consisted of a series of clear vinyl strips hung vertically, each one about 4" wide that overlapped one another approx. 1/2" or so. This kept the cold air in, the hot air out and allowed one to see ‘oncoming traffic’.
The ones that were installed in conjunction with regular (self closing) doors had a momentary switch installed that only turned the fan on while the door was opened.
In both cases, the primary function of the unit was to prevent flying insects from entering. YMMV
Some of those Mom and Pop places are listing their cash price on the signs. They’ll have a higher rate if you pay with a card because they get charged for people using cards. The place I go to in my hometown is like this.
Sure, I can see that. The use I’m referring to, however, is in grocery stores that have open entrances. I used to live in the Arizona desert. (I guess I could have just said “Arizona” ) There was a grocery store in the town that had an entrance about 20 - 25 feet wide, without any doors. This store had the aforementioned fans and when you walked through them you’d get blasted by the fans. These fans did a pretty good job of keeping the hot air out and the cool air in. I suppose they could also have the additional function of keeping the bugs out. And, in truth, I’ve never asked them specifically about my turbulent flow air separation hypothesis, but my experience says that that is the result.
On the other hand, the only stations which do this near me are Valero stations, which are a brand of a major refiner and which replaced Exxon here. The Mom and Pop stores almost never charge extra for credit.
Only a crook would do it of course … but I’ve bought very cheap “super” that wouldn’t run correctly in my bike – I assumed it had been split with “regular”.
And 10 or 20 years ago there was a bunch of trouble here with people substituting kerosene for diesel. Diesel <is> kerosene, but much cheaper here because of taxes. And also because Diesel is required to have lower sulpher levels. The high sulpher levels in the illegal product create sulphuric acid, which destroys your engine. Big issue for truckie owner/operators. (As well as being an atmospheric poison which kills people in polluted cities)
