How gas stations price their product

Gasoline and Diesel are priced by rack though out the country.  I suggest googling “Gasoline Rack Prices” for more information. Companies such as OPIS make a business out of monitoring and reporting wholesale rack prices at 200+ racks across the country. For a price any one can access this information including the local gas station owner.


Refining/Transportation companies price the racks in an array by location based on their cost to supply. Their power in the market place (perception of quality XOM vs. Sinclair), the retailer relationship with the supplier (i.e. are they carrying a branded flag and what volumes are they allowed to pull), etc.  The pricing is dynamic to avoid runs on inventory by retailers who see a price discontinuity, etc.

What happens at the retail level after the fuel is purchased at the bulk wholesale rack is usually driven by local issues and may have less transparency. However fast is the local gas station turning over inventory, where do they make their money (Beer, Twinkies, car wash, etc), are they branded, location, etc.


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