View Single Post
  #27 (permalink)  
Old 04-16-2008, 12:29 PM
Simon Wolf's Avatar
Simon Wolf Simon Wolf is offline
Cheesesteak GURU! Wiz with
 
Join Date: Sep 2007
Location: Lower Italian Market/Eastern Passyunk Square/West Pennsport
Posts: 1,720
Default

Quote:
Originally Posted by raider.adam View Post
Federal government drops the tax 18 cents a gallon. Why would all of them raise their price 18 cents a gallon without discussing it? If Sunoco raised it 18 cents a gallon, all the others could raise it 10 cents and take their business.

That means Sunoco would have to go down to their range, which means they can go down to 5 cents a gallon more, etc.

It is called economics.
You're so right, because that's how gas pricing always works! That's why we all buy our gas at ExxonMobil, as they're always $0.15 cheaper than everyone else! I don't know why anyone bothers to compete with them.

Seriously, haven't you ever noticed that the price per gallon rarely varies by more than $0.05/a gallon in any given area? The reality is that if one gas station raises their prices, all the rest do, too, as you can't not buy gas. They can charge whatever they want and don't have to worry about undercutting the competition because they're selling a commodity that people literally cannot live without.

It's called, but the way, economics.
Reply With Quote