If one gas station lowered gas prices.........?

Question

If one gas station lowered their gas prices by maybe a dollar then they would get more buisness so they could pay for the gas to be put in the pump, Then the other gas stations would have to lower their prices so they could be good competition then a whole town could have cheaper gas prices right??? Well I'm only a teen so don't blame me if this sonds stupid I am just sick of stinkin high gas prices!

Answer 1

The problem is, the gas stations only make about $0.05 margin on each gallon they sell.  Out of this, they need to pay for operation of the station as well as income for the owner.  If they lowered the price by $1.00.  They would be loosing $0.95 on every gallon they sold.  Not a plan for continued survival.  You cannot make up a loss on volume.

Answer 2

most gas  stations dont make more then .05 a gal.

Answer 3

Gas has always been cheap. It's highly subsidized. We are taking our resources for granted. Even if gas was bazillion dollars, don't you think drilling, pumping, transporting it to a facility to convert it, transport it to another facility to make the pseudo engine gunk-free formula, and then transporting it to the gas stations costs a lot?

Answer 4

That won't work because of what they have to pay for the gas...

What would work is if everyone in the country stayed out of their cars for twentyfour hours..on say Tuesday when they would normally drive....for most people it would only save one or two gallon per car....but there are millions of cars.....

Answer 5

If the gas station really did lower their prices, people would go insane pumping gases into their car! The only reason why the gas price is high because this may decrease gas user and as well save the environment a bit. For those people who may not afford gas for their car, they may end up taking public transit. This is a good thing because like I have said before gas is a non-renewable (only could be use up once).

:D

Answer 6

i wish they would do that!!

Answer 7

That would not work. It is not the gas stations that cause the price of gas to be so high, its the people that buy the oil and sell it to the refineries.  Gas stations do add some profit, but its more like 10 cents a gallon and not a dollar or two.

Answer 8

The gas stations have to buy the gas to put in the pumps.  The profit margin on gas is only 10 to 15 cents a gallon, so if they drop the price a dollar, then they are paying for your gas.  It is not the gas stations fault gas is so high, it is because the E P A will not let any more refineries be built.  The last refinery went on line in 1973, and some of those have closed.  This means that we have less refineries producing gas for many times cars that we did have  35 years ago.