Explain This To Me…
Before leaving Nashville on Friday morning I noted that the prevailing price for regular gas at the majors was about $2.69. Feeling quite smug about having paid $2.54 on Thursday at a new station still on their promo pricing scheme (Hook ‘em in once and they’ll come back again…), I took off toward Knoxville, about 200 miles up I-40.
About forty or so miles up the road, around Lebanon, I made a pit stop, not for petrol, but to pee and get another coffee so I would have an excuse to make another pee stop a little further up the road. Getting out of the car, I glanced at the sign… $2.37! Holy Halliburton, Batman! Alas, my batmobile was not yet thirsty.
Cruising on toward Knoxville (also known as The Permanent Interstate Construction Zone That Would Not Go Away), the towering signs at each exit announced lower and lower prices. Finally I filled up at a large Shell station at Kingston, about 30 miles out of K’town, for the throw-away price of $2.23.
Arriving at my destination, the Hallowed Ground of College Football, prices had crept back up a bit to about $2.39. Here’s my question: How in the name of OPEC can gas prices vary so much, almost half a dollar per gallon, in the same state from the same distributors within minutes of each other? Either we’re being gouged back in Music City or the stations elsewhere in the state are taking such a loss that they’ll soon be out of business.
To complicate the picture, just this week I heard or read one report that gas prices up east and on the left coast were still at or over $3.00 per gallon. Admitted, I’m an engineer and don’t understand a lot of things. But I also have an MBA, studied Keynesian economics, understand the basics of supply and demand pricing structures, and have some knowledge of regional, national, and international trade and distribution systems. But I don’t understand this…
11 Comments so far
I have no idea either, so I suppose I’m another sailor in this ship of fools!
It’s the same deal downunder, although CPI trends tend to show that fuel is cheaper on a Tuesday for some reason. More than likely as it’s the last day before the salary/welfare payday cycle.
I was once a production planner for a food business and our peak days were Thursday to Saturday, that’s when Mums and Dads did the shopping.
Current price here is AUD$1.25 a litre which works out at about $US3.55/gallon it was up around US$4.23 for premium. Still cheaper than Europe though!
I’m as confused as you are Winston. I was just talking about this yesterday with my son. I’ve noticed the same thing here in the suburbs of Chi-Town. I haven’t seen a difference so high as a half dollar yet, but certainly 20 and 30 cents difference. With as horrible as it’s been…everytime I see a place that’s cheaper than the usual place I go to….I have a few moments where I feel just a little “steamed.” What the heck’s up with this?
We have the same thing in Oregon but our price for unleaded is still 2.87 in the closest town but will vary through the cities and state. They keep people confused so no one can call it corruption or greed which is what us little people are assuming given their astronomical profits recently. We certainly have a government that is not going to look seriously into what it is. They just want more of it. Any money going into a millionaire or billionaire’s hands has to be patriotic.
Yup - I noticed the same thing when I was in Atlanta the other week. Ahhhhhhh, the joys of living in New York and not owning a car! (Don’t care about gas prices, insurance prices, car servicing, parking tickets . . . burden lifted.) Go Big Orange! (And, of course, Roll Tide!)
And your’re complaining Winston… Spare a thought for us here on the other side of the pond. Petrol is £5ish pounds a gallon, and at a rough estimate US prices are around £1.50ish.
We’d like to emigrate, any suggestions which is the cheapest state for petrol :-), and there has to be lots of Chinese, Malaysian, and Italian restaurants, oh and mountains and lots of forests…. and preferably a new administration, with James Carter as governor or possibly president…. Tall order??
Winston, go here, I think you will like this…. this is what I have been waiting for, writing speeches for GB…
http://www.tinpot.net/minibytes/blog/archives/edutainment/make_your_own_bush_speech.html
Damn, Winston. Florida? You let Florida win?? Damn. And one more time - damn! Aaargh! I thought I left you in charge of Vols football!
(Now, be careful driving back to Nashville, whatever the gas prices.)
I’ve heard that the pump price depends on the price the station paid when the tanks were filled. If one station is working off a less expensive tank, that should make a difference. Does that make sense to you?
Ooops! Sorry Winston. Remember…it’s only ONE game.
Stay safe.
Well of course other economics besides the raw cost of the gas come into play, the more rural stations have less location cost built into the price, plus they have to survive within the economics of a lower general cost of living … I wouldn’t think these would account for *so much* difference, but I suppose they could.
Here in Texas the price goes up and down so fast, I wonder who are the guys changing the signs every other day. A whole new profession. On one side of the nearby street $2.33, across the street $2.56. Guess where the line is?