Thursday, July 24, 2014

Somerset's Battle of the Pumps

Nation watching Somerset gas sales » Commonwealth Journal



the fuel center is selling gasoline today for $3.36 per gallon for regular.  Many of the local stations are selling at the same price.  Some stations farther out are at $3.39.



The other day at Kroger I used my fuel points and bought gasoline for $3.07.  My work truck has a 30 gallon tank so that 30 cent discount will amount to $9 per fillup if the tank is empty.  Most vehicles have a 15 or 18 gallon tank so that same discount would amount to about $4.50 per fillup.  That is a significant number but at, say, $3.41 that would only be about 75 cents for a fillup.  That is not enough to motivate me to make a trip to some inconvenient place to buy gasoline and I don't think that most folks would disagree with that.  Alternatively, you can see what it meant when the stations precipitously increased prices 20 cents or 30 cents at a whack.  For my work truck that meant an additional $9 per fillup and for most it would be an additional $4.50.  That is enough to motivate someone to seek a better deal.



My point being that stations in more convenient locations could easily get away with charging 5 cents or maybe even 10 cents more per gallon without any significant loss of business.  The Somerset Fuel Center is not a handy place to get to even if you know where it is.  The hue and cry over the city entering this market is all sour grapes and an ideology that does not favor the average person.  With any degree of luck this will keep the others a little closer to a reasonable price.

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