Don't you think if gas stations lower their prices, they would be making more money?

Question

It seems like now, people just don't want to buy it, but they would if it was cheaper right?

Higher Gas Price= Less Sales

Lower Gas Price= More Sales

Answer 1

Thats how capitalism is SUPPOSED TO WORK in theory, with this price gouging, one station would undercut all the others and get all the business, but gasoline is a victim of monopolies and price fixing

Answer 2

What you have deff. makes sense, but gas stations have a set price range that the can use, like now something like 3.98-4.04, if they go below the minimum or exceed the maximum, they have to pay a hefty fine, plus in the long run, they could be loosing money. A Barrel Of Oil is almost 200 dollars.

Thanks for the thumbs down.

Answer 3

From what I have seen gas prices haven not  really dropped in Southern California. It is essential to drive to most places here. Some people are lucky to have public transporation avilibele so  they do hat but they normally have to drive to the train station or have a hard time commuting. Some people have opted to have a bike to go close by, but they still drive to most places.

Like others said gas prices are not established by the owner of a gas station and there are laws on the pricing in the US. I am curious to know from where you are from since you have seen a drop on sales!

Answer 4

The stations do not make the profit, lower price would bankrupt them.

Answer 5

nope ppl

are gonna keep buying even if its like 8 dollars a gallon

cuz we need it .. theyre gonna sell the same no matter wat.

Answer 6

Nope, they were just having enough, it doesn't necessarily mean lowering everything to be more accommodating for everyone would mean more bucks! more customers, Yes! but at the end when you run out of stocks, you'll end up doubling the price of it for giving it at the price your customers want.

Higher Price =  More Money = Less Customer

Normal price = Normal Customer = Normal Money

Low Price = More Customer = Low Money

Answer 7

most station owner are now hardly making it now. its the oil company's and the producers that are making the money. not buying gas only lessens the producers profit

Answer 8

gas stations make verry little proffit off the gas they sell.  the make more off of beer and chips and stuff like that..     and the gas stations do not controol the price of gasoline..   we buy barrels of oil from a middle eastern country..   they charge us so much a barrel ( right now the are tearing us appart on it ).. so after the price of the oil and the cost of making it inot  gas..

  we are not being ripped off by the gas stations or the gasoline makers.  we are being ripped off by the people selling the iol..  if  gas stations lowered the price they woulb be loosing money..   the gas stations pay almost as much as we pay for the gasoline

Answer 9

Gas stations only make a few cents on each gallon of gas. It's the oil companies who make the most money, and they've got you over a barrel.

Answer 10

NO, gas prices at the pumps aren't based on the "owner of the gas station" thinks.

It's the price of OIL darlin' per barrel.

Answer 11

I think that if they lowered it, by even 50 cents, there would be lines down the street to get in there. In the long run, they would make a killing!

Answer 12

I don't think they'd be making more money. People need gas, and no matter how expensive it is, they'll still buy it. Yeah, they may buy a little less gas, and walk a little more, but if they lowered the price, the same amount of people would be buying the gas as before.

Answer 13

No.  Gas station owners aren't making a bunch of bucks from selling gas.  They make more money from the soda you buy than from the gas you put in your car.

Answer 14

no it would stay the same, gas prices are going up because of taxes on them, not because of oil prices. It's the taxes that pay for the oil being imported. Most of the money you pay is tax.

Answer 15

I go to the cheapest gas station and I know everyone else would too, so the answer to your question is yes. If gas were cheaper, I would travel more. I've really cut down on driving. Gas in CA is $4.71 for premium, so I don't really go anywhere anymore.

Answer 16

people either need to shut up about rising gas prices because we all know you still gonna buy it. We should go back to horses and buggies....but then we'd have a hay shortage and be back to where we started...hmmm

Answer 17

NO.  I don't know where you live but there has been no dramatic drop in gas sales in the USA.

There are also laws in the USA that state that one station can not have a certain % lower price than other stations in the same area.

Besides, gas stations really aren't responsible for the price.  The oil companies are gouging them for rent.

Answer 18

It's not that simple cuz the only reason y its so expensive rite now is cuz its hard to get atm, also because of the war, so its kinda impossible to lower the gas prices

Answer 19

Unfortunatly  - No. The gas stations  price fuel per gallon as a standard mark-up in percentage. It is usually only PENNIES (like 2 or three cents) per gallon, most the rest goes back to uncle Sam in various forms of different taxes.

Gas stations make most their profits on conveinience sales, like when someone pays $4 for a package of cheap pens or pays $1.75 for a soft drink.

I wish they would think that lower gas prices = more sales! that would be great.

Answer 20

yea gas is expensive

were i live its 4;40 $

Answer 21

For most items, your idea works. But with gas, the mark up is very small. The gas station makes a very small part of the money and thus has little power to lower the price.

Answer 22

Wouldn't work like you think. For instance, I work for a fairly large company that operates over 500 gas stations. We already loose money on every gallon of gas we sell. If we sold it for any less we would no longer be in business. Wal-mart recently sold off all of their Murphy gas stations because they came to the conclusion that it was a good business decision to loose millions of dollars selling a product for less than it costs. This is also why there aren't many gas station is metropolitan areas anymore. Loosing money on gas along with the high prices of real estate has cause them to flee the metro areas.

Answer 23

yea i think so but u can't live without gas