I saw an intersection with gas stations on 3 corners sell 3 grades of gas each had the same prices?

Question

Are gas stations possibly fixing prices, or was it just luck they all have the exact same cost and profit formula?

Answer 1

THAT'S VERY COMMON BY MY HOUSE THAT'S BECAUSE THEY ALL BUY THEIR MATERIALS FROM THE SAME PLACE

Answer 2

To be honest, it's a silly question.  If the stations are on the same corner, and the prices are different, then 100% of motorists will buy from the one with the cheaper price.  Keep driving around, and you'll see what I mean.  If stations are across the street from each other, they will be the same price.  They have no choice.  Whichever one lowers prices first, the others follow.  they have to.  Raising them is a little bit trickier.  

There is a little bit of flexibility.  If one of them is a "major" (like Exxon) and the other is "El-Cheapo Mike's shack 'o gas" then they can have a 2 cent difference.  There are some people that don't buy the watered-down stuff.

Answer 3

thats not too uncommon..

they might differ by a couple of cents every once in awhile

but they all buy the same oil from one place and they need to set a specific price for profits..