Quote:
Originally Posted by Aragorn
Over the last couple of years around here (northeast) gas prices seem to drift up and down in around .05 to .20 cents a gallon increments overnight. It used to be that retailers only changed the prices when they purchased more off the truck. Now with small independent chain stations, the managers say the prices are set by the company on a daily basis and they (managers) have no control over the prices. Someone presses a button and all the stores prices go up or down.
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Dunno about Canada but in the US, over 90% of all stations are independently owned or operated.
Most of the stations with big names are actually privately owned franchises.
There are a go-zillion different types of franchise agreements, some of them include set prices depending on spot prices, wholesale prices, competitors, etc. Some give the station owner a great deal of freedom, some not at all.
Point is, the oil companies have a little bit on influence on the pump prices but not as much as most folks think.
More often than not a station's price is determined by what Joe Blow across the street has on his sign.
There's not supposed to be collusion at the retail level but I'm sure there is some.