Sunday March 21, 2010 6:06 PM ET
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SmartMoney Magazine by Jim Rendon (Author Archive)

10 Things Gas Stations Won't Tell You

Below is an excerpt from the book "1,001 Things They Won't Tell You," which was published in May 2009 and highlights popular columns from SmartMoney's long-running "10 Things" feature.


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1. “Good luck finding the best deal.”

When it comes to gas prices, most stations are branded—meaning the name of a major oil company hangs out front—and must buy gas from their proprietary company. They can’t shop around. With a lock on sales, the oil companies charge each station a different price depending on various factors, such as the station’s competition and its location. That means a station can pay as much as 46 cents a gallon more than one down the street, and that cost gets passed along to you.

Faced with such instability, Gainesville, Fla., resident Steven King plans ahead: “If I know I’m going out of town, I try not to buy gas so I can fill up after I leave.” King says he can save 10 cents a gallon by purchasing gas on the road. You’d be similarly wise to shop around—with prices constantly in motion, the cheapest gas may not be at the same station every time.

1,001 Things They Won't Tell You

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User Comments
CashnsaveCeo

5 Comments
The trueth of the matter is, it really doesn't matter what price we have to pay for gas!Bad driving habits are the #1 reason of such gas price hikes. Trying to save at the pumps now days, just isn't possible unless your a penny pincher. The ONLY way to save at the pumps is to change your Bad driving habits, period! Making each trip down the road More cost efficient, rather then making many trips all week to stores etc. Plan the ride out of the driveway instead of being the in and outers that are the causes of Gas price hikes! Waste, is what makes the Gas hikes. Cutting your driving trips will keep much more money in your Wallet.
rdmcma

1 Comments
I suppose telling people what they want to hear sells books and magazines, which is the authors motivation here.
#1. Companies do not charge significantly differently differently to customers in the same class of trade.
#2. We drop our retail more slowly than the wholesale because we have expensive inventory in the tanks.
#3. A Kia meets the same minimum specification for an automobile as a BMW. A car is a car, right?
The exchanges that occur between oil companies allows for markets to be stabalized and competition to increase.
#7 When gasoline meters wear they give gasoline away. Gas stations that want to stay in business do not wait for weights and measures to have state certified calibration companies check meters for accuracy. We check them at least twice per year.
#10. Most gasoline has 10 percent or less ethanol by volume, both to meet state and federal EPA regulations and to appease the farm lobby. Ethanol is not a long term solution to our energy needs.<...(Read more of this comment)
PhilB49

1 Comments
RE Standard stations only buying their gas from Standard Oil. Dealer owned "Chevron" stations can buy their gas from other oil company's if Standard is unable to fill their order. This was common in the 70s during the gas shortages. I was a dispatcher for a discount oil company at the time and processed such orders. Took the order at Time Oil, wrote it up on a Union 76 invoice and shipped it out of Texaco refinery in a plain no brand tanker truck.
double004

1 Comments
Okay, I read the article. What is the best way to pay for gas? If there is no way to tell I am getting my money's worth, what is the point in even trusting anyone? You don't seem to offer any good alternatives on most of your criticisms.
oldcheme

3 Comments
To Modeno and Bogus - y'all should check your facts, if you live on the USEC, the major oil companies have no (ZERO) refining capacity in this region. The region is served by Sunoco, COP, Hess, Valero, and the Colonial Pipeline. The pecentage of gasoline supplied by the pipeline exceeds that produced by refiners in the region. Gasoline is bought and sold between majors and independents every day. While there are segregated batches on the Colonial system, the vast majority are fungible shipments that meet COMMON industry specifications. The largest refiner is actually an independent, Valero; quit deluding yourselves.

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