Gas prices, why do people pay that much more for a "brand"

[eddie13]

Wow, you must really be in the middle of nowhere. I have barely seen a non prepay station in 15 years.

I guess..
That Shell, about 15 miles away, did go to prepay only for a few days around the 4th of July, I noticed..
Even the 2 closest "cities" to me don't have prepay.. About 40 and 50 miles in either direction..
I never realized this wasn't the norm.. Out of state I always had those gas cards where you even have to type the odo mileage into the pump so always paid at pump with them.. I guess I don't travel all that much personally..

I even went trucking through 4 states twice this year and the truck stops aren't prepay... Hmmm...

As for the fuel economy, it's just what you want to spend $$ on.

Yeah.. My cars are more my hobby than just transportation tools.. I beat on them pretty good, but don't really put on a lot of miles.. I don't commute for work or anything like that..

[squatz1]

Wow, you must really be in the middle of nowhere. I have barely seen a non prepay station in 15 years. Not counting the full serve ones.

And I have receipts from 35 of the 48 continental states. A lot of them from some very rural places. I have fueled up in towns with a smaller population then the office building I work in and they even had the pre-pay pumps.

As for the fuel economy, it's just what you want to spend $$ on. I (pre covid) put on too many miles to have a non fuel efficient car at the moment. Or, as my accountant put it. "Compared to the car before this you are just about saving more in gas then the car costs"

When you get oil changes every 7500 miles and someone asks you "weren't you her this month already?" and you just nod and head for the free coffee & donuts you start to care...a lot.

-Dave

Prepay gas stations are just the ones where when you put your card in they authorize for a larger amount then you purchase, and then refund you, right? Pretty sure that's just done with debit cards though, I know Credit Cards are typically just charged in the amount that was done afterwards -- with maybe just an authorization for more if they're checking you can pay for gas.

Literally don't think I've ever seen a nonprepay gas station EVER.

When you get oil changes every 7500 miles and someone asks you "weren't you her this month already?" and you just nod and head for the free coffee & donuts you start to care...a lot.

Isn't that what rentals are for? I've done 4-5k on two-week rentals, far cheaper than maintenance and depreciation on your own car. Oil change warning comes up, call Hertz, they tell you to ignore it LOL.

Might not be able to call Hertz once these bankruptcy proceedings are done, lol.

[DaveF]

When you get oil changes every 7500 miles and someone asks you "weren't you her this month already?" and you just nod and head for the free coffee & donuts you start to care...a lot.

Isn't that what rentals are for? I've done 4-5k on two-week rentals, far cheaper than maintenance and depreciation on your own car. Oil change warning comes up, call Hertz, they tell you to ignore it LOL.

2 reasons. 1st and main reason is that I like my creature comforts. Heated & ventilated seats, Bluetooth and setup the way I like it, etc. If I am spending that much time in the car I might as well be comfortable. Most rentals are not that great and the ones that are are stupid $$$. 2nd reason is you cannot deduct / declare rental car mileage on your taxes. So it's actually a bit of a wash.  

Yeah.. My cars are more my hobby than just transportation tools.. I beat on them pretty good, but don't really put on a lot of miles.. I don't commute for work or anything like that..

That's what I have motorcycles for.

Prepay gas stations are just the ones where when you put your card in they authorize for a larger amount then you purchase, and then refund you, right? Pretty sure that's just done with debit cards though, I know Credit Cards are typically just charged in the amount that was done afterwards -- with maybe just an authorization for more if they're checking you can pay for gas.

Literally don't think I've ever seen a nonprepay gas station EVER.

Most of them do an authorization for anywhere between $75 to $100 to make sure you can pay for it. They then let you pump up to that amount. Once you are finished you get charged what you used. If you go over the authorized amount the pump stops and you have to re-swipe your card.  

As eddie13 pointed out they are out there,they are just getting really rare. It's just a security thing too. This way they know you can pay for the gas before you pump it.
When you think about it, it is kind of logical. You can't walk into Walmart put a bunch of things in your cart, roll it to your car, put them in your trunk and then walk back in and pay for them. You have to pay for your stuff before you leave the store. Why would someone let you put their gas in your car before they know you have the money to pay for it?


Anyway, back to the original point of the thread. I saw another one yesterday, 2 stations on one side of the road that were next to each other at the exact same price. $2.09 / unleaded. If you went a few hundred feet and made a right onto the cross street and then a few hundred feet more....$2.49. So yeah it's 1/4 mile or so away from the cheaper places but really?? if I'm ever back in that area I might just do a 15 second video...

-Dave

[eddie13]

Ok maybe I'm confused..

When I say "prepay gas stations" I mean ones that FORCE you to prepay..
Yes, the gas stations around me you can pay at the pump with a card, or go in and prepay, but you can also just pump your gas and then walk in and pay for it after you grab drinks or whatever..
Right?

Pump all the gas you want, walk in and shop for snacks or whatever, pay for everything, leave..
Actually a lot of them will stop at $100, but I've rarely pumped more than $100 at a time..

Non-prepay = they don't force you to prepay..


So with prepay... You don't mind paying twice at a gas station? Like pay for your gas, then go swipe a card inside for a $1.50 drink separately from your gas purchase?
Makes no sense..

I figure if you live around prepay only gas stations, you probably live in a shitty area full of criminals.. Sorry..

I feel like prepay-only gas stations assume I'm a criminal, so I really don't like them..

[DaveF]

Saw another one the other day and actually got a picture.
$.54 spread on unleaded for going across the street.



There was one in I passed in Wilkes-Barre PA last weekend that was also $.50 spread but the sun was glaring through the windshield and all I got was reflection / blur.

-Dave

[JohnBitCo]

The brand always takes extra from your pocket only because of their names. In most of the cases, why you buy a branded product you actually pay high not for the quality but for the name that brand has gained over the years and this is true for the gasoline industry too. Also people have trust in brands as they will never compromise on quality.

[fr4nkthetank]

thats funny...and kinda of a good thing.  Where I'm at gas stations collude and all prices are the same and move at the same time.  Cops and anti-competition feds busted some a few years back but its a rigged market.  We had a price war 20 years ago where the 3 big refiners dropped prices to kill off the independent gas sellers.  Since they refine the gas they sold it at a higher price wholesale than they sold retail at their stations...small guys all died.  Since then, collusion and oligopoly.  which translates into higher average prices and higher price volatility (jumps before weekend, etc).  all proven with the power of mathematics and comparative statistics...

[coolcoinz]

I don't live in the US but I usually choose those cheaper, local brands. We have all those big ones like Shell and BP here, but it's the same gas. Some guys were even testing it in a lab for a YT video to see if they aren't cheating and giving you a bit less or mixed old gas with "fresh" and the results were more or less the same. The same amount (no cheating), all clean and fresh. I don't know why some people choose expensive gas. BP has a special offer for companies so I see a lot of busses and trucks there and small places don't have all that fuzz with fresh coffee and snacks.

When you get oil changes every 7500 miles and someone asks you "weren't you her this month already?" and you just nod and head for the free coffee & donuts you start to care...a lot.

Isn't that what rentals are for? I've done 4-5k on two-week rentals, far cheaper than maintenance and depreciation on your own car. Oil change warning comes up, call Hertz, they tell you to ignore it LOL.

And then some poor guy buys a 3 year old car and finds out the engine is basically dead because they were doing one oil change a year regardless of the distance it covered.

[FIFA worldcup]

When you get oil changes every 7500 miles and someone asks you "weren't you her this month already?" and you just nod and head for the free coffee & donuts you start to care...a lot.

Isn't that what rentals are for? I've done 4-5k on two-week rentals, far cheaper than maintenance and depreciation on your own car. Oil change warning comes up, call Hertz, they tell you to ignore it LOL.

And then some poor guy buys a 3 year old car and finds out the engine is basically dead because they were doing one oil change a year regardless of the distance it covered.

That's funny because no oil company suggest to change the oil after certain months, they will always recommend to change it after certain millage. How can one be so ignorant ?

[coolcoinz]

That's funny because no oil company suggest to change the oil after certain months, they will always recommend to change it after certain millage. How can one be so ignorant ?

Those aren't their cars so they don't care. They lease them for a few years (usually between 2 and 5) and return them to the dealer.
Most manufacturers advise to change oil before a given mileage is reached. When I've been shopping for a used car, I demanded them to show me the service history. If the oil changes were being done at the last possible moment just to fit in the scheduled maintenance it was obvious the car was part of a fleet. Also, the first oil change is a good indicator. Normal owners know you should do it ahead of sechdule (like with half the mileage given by the manufacturer) but a rental will always have it at or even after the max mileage. They always want to save a buck and do as little of them as possible in those few years when the car is in their hands. 

[lepbagong]

That's funny because no oil company suggest to change the oil after certain months, they will always recommend to change it after certain millage. How can one be so ignorant ?

Those aren't their cars so they don't care. They lease them for a few years (usually between 2 and 5) and return them to the dealer.
Most manufacturers advise to change oil before a given mileage is reached. When I've been shopping for a used car, I demanded them to show me the service history. If the oil changes were being done at the last possible moment just to fit in the scheduled maintenance it was obvious the car was part of a fleet. Also, the first oil change is a good indicator. Normal owners know you should do it ahead of sechdule (like with half the mileage given by the manufacturer) but a rental will always have it at or even after the max mileage. They always want to save a buck and do as little of them as possible in those few years when the car is in their hands. 

Yes, we have to differentiate between the ones we rent with and we have of course the treatment to be made clearly very different.
but usually, even though we rent it monthly or maybe annually, they will also be responsible for what happens when we use it, so if the matter of changing the oil is clear it must be according to the schedule that has been made. based on the company's experience in the place where I work, vehicle rental has been followed with responsibility for all damage or anything that occurs with the vehicle we rent.

it is clear that the matter of attention will be different if we rent it with what we have, obviously we will pay more attention to what we have. but if we rent it too, if we are not comfortable using it, we will definitely complain so that it is fixed immediately.

[KonstantinosM]

I always buy gas at wholesale clubs.

15 cents cheaper than outside. I always have their cards as I get more in savings from holding them. Some items you can get for an absolute steal at Costco and Sam's.

Add cash back from credit card 5% usually and I stretch my dollar to the max.


I would never stop and fill at a more expensive gas station unless I absolutely had to.


Here's why I think people do it. Maybe it's just slightly more convenient for them to park there and they're that lazy.
Maybe the store attached sells what they wanna buy and again they are that lazy.
Maybe it's psychological, they think the gas is better.
Potentially they like the owner or some of the employees and want to support that business instead.
Maybe the cheaper gas station has really slow pumps and is generally harder to use them.

[DaveF]

Bit of a necro bump here, but...it's getting worse.
$2.99 vs $4.59 for diesel.
Or to put it another way, more then 50% more between stations across the street.
WTF
And although you can't see them in the picture there are people putting fuel in their cars at the Mobil.
I really wanted to walk over and ask them why?



-Dave

[PrimeNumber7]

Bit of a necro bump here, but...it's getting worse.
$2.99 vs $4.59 for diesel.
Or to put it another way, more then 50% more between stations across the street.

For diesel, I would think a lot of people who are buying diesel are not personally paying for gas, but rather their company is (or they are going to get reimbursed after putting it on their card). An employee filling up may simply not care about paying the lowest price, or if they are going to put it on their credit card, they may want the higher price so they can get more credit card rewards and will get reimbursed regardless of what they pay. I can't think of any other reason why someone would be willing to pay that much more, assuming there is actually gas available at the lower price.

As for the "regular" gas, I suspect some gas stations figure that people will be willing to pay the higher price rather than wait in line to pay a lower price, especially if they are filling up to/from work and waiting in line would make them late.

[eddie13]

That’s crazy...
I’ve never seen anything like that..

[Mauser]

In my city there are two gas stations on the same road right opposite of each other, one is Shell and the other one is a no name gas station. The no name one is offering cheaper prices than Shell but still most people go for the brand. It's a really wierd phenom and might be related to advertising of Shell. The fuel is exactly the same, except for the high premium one which are most people mit buying anyway. I read in an article that 80% of the cars don't really see an performance increase from the premium fuel.

[DaveF]

Bit of a necro bump here, but...it's getting worse.
$2.99 vs $4.59 for diesel.
Or to put it another way, more then 50% more between stations across the street.

For diesel, I would think a lot of people who are buying diesel are not personally paying for gas, but rather their company is (or they are going to get reimbursed after putting it on their card). An employee filling up may simply not care about paying the lowest price, or if they are going to put it on their credit card, they may want the higher price so they can get more credit card rewards and will get reimbursed regardless of what they pay. I can't think of any other reason why someone would be willing to pay that much more, assuming there is actually gas available at the lower price.

As for the "regular" gas, I suspect some gas stations figure that people will be willing to pay the higher price rather than wait in line to pay a lower price, especially if they are filling up to/from work and waiting in line would make them late.

On the same note, people who are buying gas for themselves; truck owner / operators, contractors, small biz, etc. are going to avoid you so you loose that business.
And with a look at gas buddy, every station that has reported diesel pricing in a ~5 radius is at the $2.99 level give or take.

In my city there are two gas stations on the same road right opposite of each other, one is Shell and the other one is a no name gas station. The no name one is offering cheaper prices than Shell but still most people go for the brand. It's a really wierd phenom and might be related to advertising of Shell. The fuel is exactly the same, except for the high premium one which are most people mit buying anyway. I read in an article that 80% of the cars don't really see an performance increase from the premium fuel.

That I have seen for years, but between 2 "name" brands, it's usually at least close.

-Dave

[DaveF]

Oh my god how can people live $6.99 a gallon for diesel and $4.49 for unleaded.





Oh, wait nevermind.



The sad part is the people / person who run the speedway have figured out they don't even have to be competitive, just a chunk less then the Mobil.
There are stations a few miles away that are about $0.20 a gallon cheaper then they are, when they used to be by far the cheapest.

-Dave

[Mr.right85]

Sometimes people have loyalty cards/discounts that make up at least part of that difference.

Loyalty cards... well sometimes but not at most becuase, there are others who consciously or unconsciously find themselves in this pool and just keep up the way.

Some of the factors to this could be distance and maybe loyalty cards but if we are to take away these two factors, I'll attribute most of it to ignorance. Some customers comes up with the feeling, the fuel in other station is better than the other.
What they fail to realise is the fact that, the products are loaded from a single manufacturer (refineries) and discharged at a filling service station. Where the branding comes in is, the carriage vessels but the product stays same.

Not many acknowledges this and I think the quality of services as per customer services and also, the accuracy of its meter readings would be some other factor that promotes this but, its largely due to ignorance.

[PrimeNumber7]

Oh my god how can people live $6.99 a gallon for diesel and $4.49 for unleaded.

[img ]https://i.imgur.com/3D8Ehchl.jpg[/img]



Oh, wait nevermind.

[image of $4.89/gal diesel]

I would repeat what I said previously, that some people buying diesel may be buying on behalf of their company, in which they have no incentive to minimize costs.

You had previously responded that these crazy high prices may cause some people who actually are ultimately paying for the gas (independent contractors, actual owners of rigs, etc) may bypass these gas stations, and these gas stations would lose this business. My response to this is that the larger markup is likely sufficient to make up for those lost sales.

I would also note that in many gas stations, the pump for "regular" gas, and the pump for diesel occupy the same "spot", meaning if someone is pumping regular gas, someone cannot pump diesel in the same spot, and vice versa. I am speculating about the data, but it is possible that those who buy diesel are less likely to buy items inside the gas station, which tend to be a larger source of profit than gas, so some gas stations may disincentive people from buying diesel, so they can ultimately attract more people buying regular gas into the "store".