Cheap Gas

[MaineShark]

Paid $2.719 on 108 in Newmarket (just south of the center of town).

They claim that they're the lowest in the state.  Probably not worth a drive if you aren't in the area, but I was driving through anyway...

Joe

[K. Darien Freeheart]

$2.97 ain't bad.

It's $3.19 in my city, $3.39 in the city I work in.

[Lloyd Danforth]

http://www.newhampshiregasprices.com/Newmarket/index.aspx?

[margomaps]

http://www.newhampshiregasprices.com/Newmarket/index.aspx?

Joe: looks like you may have been swindled to the tune of 2 cents per gallon. 

On a related note, can anyone explain why the prices change so much from town to town?  Is it all due to competition and supply-and-demand?  Moving one town over from Newmarket to Lee, the cheapest price is 45 cents/gallon more.  In the past I've heard convenience store owners claim their profit margins on selling gas are miniscule -- a few cents a gallon at best.  But a 45-cent swing between nearby gas stations that surely have the same distribution/transportation/tax burdens seems to cast doubt on that explanation.

[MaineShark]

http://www.newhampshiregasprices.com/Newmarket/index.aspx?

Joe: looks like you may have been swindled to the tune of 2 cents per gallon. 

The Mini-Mart is more expensive, if you have cash.  If you don't have cash on you, Rockingham Gas has a much higher plastic price.

On a related note, can anyone explain why the prices change so much from town to town?  Is it all due to competition and supply-and-demand?  Moving one town over from Newmarket to Lee, the cheapest price is 45 cents/gallon more.  In the past I've heard convenience store owners claim their profit margins on selling gas are miniscule -- a few cents a gallon at best.  But a 45-cent swing between nearby gas stations that surely have the same distribution/transportation/tax burdens seems to cast doubt on that explanation.

Part of it is that they high-demand areas allow stations to set higher prices.  Another factor is quantity: if a station sells a lot of gas, they can often get a better price, and therefore keep their prices low, allowing them to sell more gas...

And, remember that profit comes after all expenses.  A franchise station may charge more than a generic station in the same area, but still make the same profit margin, because the franchise costs (and worker benefits, and such) may be higher.  The generic station can make money at a lower selling price, due to lower overhead.

Joe

[J’raxis 270145]

Budget Gas in Manchester was $2.98 on Saturday. Probably cheaper now.

Gas Buddy can be useful to find good prices.

[Jared]

2.99 in portsmouth today

[K. Darien Freeheart]

Gas in the "proper" DC suburbs is insane. I wouldn't be surprised right now hear somewhere in there was still hovering near $4.00 a gallon. That said, Joe is mostly right, and the implied "what other services do the offer" factors in. Gas stations make very little on gas, it's the insane markup on beverages and cigarettes and the like that turns most of their profit.

I've been told that Costco actually sometimes uses gas as a loss-leader to get people to become members. The idea is that once someone's paid for a membership, they'd be more incline to use it in the store.

[MaineShark]

Gas stations make very little on gas, it's the insane markup on beverages and cigarettes and the like that turns most of their profit.

Same with lottery, which nets the store very little, but gets the compulsive gamblers in there scratching tickets and buying snacks while they do it.

Of course, if you want insane mark-ups, check out what a 50-pound bag of popcorn kernels costs, wholesale.  Then figure out how much popped popcorn you can make from 50 pounds of kernels, and then sell for $.99 for a little bag or it.  Last I checked it, the profit margin was in the thousands of percent.

Joe

[dalebert]

Of course, if you want insane mark-ups, check out what a 50-pound bag of popcorn kernels costs, wholesale.

I believe the same is true of fountain drinks. I think the most expensive part of the drink is actually the cup, top, and straw.

[Fluff and Stuff]

I've heard that Newmarket is the cheapest in the state, also.  The reason why gas is so cheap in Seabrook is because it has many gas stations, most of which are on the busy Route 1, and is known for cheap gas so lots of people make the drive to visit the area (beaches, race track, strip clubs, stores) and get gas.  I think it is 2.819 right now.  I've noticed that gas usually runs 10 to 30 cents per gallon cheaper than nearby towns.

[Pat K]

3.29 by me on the Isle of Long.

[KBCraig]

The northeastern tip of Texas seems to always have cheaper gas than the surrounding area, but I did read of $2.41 gas in Little Rock yesterday. I paid $2.659 this morning, although I could have saved a penny by driving around.

[PowerPenguin]

I paid 3.03 in Hampton yesterday. Exxon/Mobil has a branded credit card that saves 30 cents/gallon for the 1st 2 months (15 cents/gal after). I need to dump my old credit card after I pay it off anyway, so I might go with this one.

[BaRbArIaN]

$2.77 in Durham NH