Did you know that some Gasoline retailers would sell gas below cost but are prohibited by law from doing so?

Question

in Maryland for instance companies like Safeway and Costco would useGas as a loss leader to get you in to the store. but THE Maryland government forces them to sell at or above cost.

Answer 1

I think this is a myth. Costco does often sell gas at cost, but I don't think they can afford to sell gas below cost. For one thing, their fueling stations generally have longer hours than their warehouse.

It's very hard to tell if Costco is selling gas above, at, or below cost. That's because Costco buys gas from many different sources, some under long-term contracts and some bought at spot prices. So it takes an accounting degree and up-to-date figures to determine how much they pay for gas.

It's a really dumb law though.

Answer 2

You are right G!  The primary reason I don't live in the Soviet...I mean State of Maryland.

Answer 3

that's right, its so the little gas station owner doesn't get overtaken by large conglomerates to create a monopoly, its called unfair competition

Answer 4

yeah some chain tried that and the state stopped them. the idea is they give discount to their savings or membership card holders in exchange for a fee or coming in and buying your groceries