Cinder Block Wall Next to Safeway?

I bet the prices will still be the same.... darn gougers... nobody should buy from the neighborhood stations... stick to places like Citgo on rt50 near south riding (near belmont ridge) or up near Costco... definately cheaper than in our community 8)

 

Why do you think that the Rt. 50 prices are lower? Are the station owners over there just nice guys?

Most likely has to do with the cost of real estate and doing business. Our community is an expensive place to own and operate a business. Route 50 west of 28 is a less expensive (and less desirable) location. The fact that our local stations charge higher prices does not mean that they are gouging.

I like lower prices like everyone else but one also has to consider the circumstances. I don't think that our local stations are gouging us. Sure they could be a few cents cheaper but they are not way out of line with other area stations. For me it is often a question of convenience. I would tank up on Rt. 50 if I had a reason to be there and needed gas but would not make a special trip there just to fill up. Time is money too.

I do think that some competition may be helpful but won't likely make a big difference in the local gas prices.

 

Interesting argument, but the real estate issue breaks down when you consider Sheetz in Leesburg, 7/11 in Sterling (across from Costco) and Costco. All three of these are high rent districts, not much different than what would be expected in our neighborhood. There prices are substancially less. It's gouging pure and simple, in my mind. I only buy at these neighborhood stations to get to the cheaper ones. I always tell the attendants as well. Not that that may make a difference, but I feel better.

 

All we have in this area are exxon/mobils so there'll be no price war. As soon as the Shell and Safeway go in, and they price their gas .01c below the ex/mo stations in the area...boom, price war. Mark my words...

 

The price differences could also be a victim of zone pricing. It's a nasty little practice the oil companies engage in. Here's a brief description from a Washington Times article:

"Oil companies and gas distributors determine wholesale prices for stations based on zones they create in each state. The zones can be as large as an entire county or as small as one gas station, but they will not disclose where the zones are or how they determine them.
Essentially, the oil companies examine how much competition is in the area and then estimate the price motorists are willing to pay, said Andrew Kleit, a Pennsylvania State University energy and environmental economics professor."

If you are interested, here's a link to the full article:
http://www.washtimes.com/business/20040603-102828-5866r.htm

 

One of the reasons gas is cheaper in Leesburg, is that the gas tax is cheaper in the city of Leesburg. Loudoun County has a a higher gas tax ... so you could have an Exxon in Leesburg selling gas 5 cents cheaper than another Exxon just the other side of the city line.

Neil Z.
Resident since 1999

 

Just bought gas at my favorite exit (104) off I-95. All the stations there were either $1.74 or $1.75 a gallon.