Gas War

A Murphy Express gas station/convenience store
opened across from Walmart in the town limits of
South Boston Va. just over a week ago now. It's
right beside the long time Gas House that's been
there since 1975. Gas house has always been the
lowest price on gas in the county. The price was
at $3.39 when the gas war started. By the end of
last week it was $2.87 and this week it's $2.72.

Looks like Murphy Express is trying hard to drive
out the Gas House. As far out as the town of
Halifax I bought gas today for $2.74 from a Hess
station. Folks at Murphy Express say they'll sell
gas on the 4th for $2.14. Folks from far away are
bringing containers and filling up with lines out
in the street at those 2 stations. I waited till I
got off work tonight and used Hess. No line and
paid at the pump. This may go on a while. Gas
House has approval to match Murphy for the time
being.

Last gas war we had in the county was in 1969.
Gas was going for 24 cent then and got down to 18
cent.

I remember gas wars! Someday kids will be reading about them in history books. A little over a year ago Sheetz opened a facility in our town. They undersold everyone for awhile. When they opened they kinda gave the impression that they would have the lowest prices in town. The other day I was by there and they were 2 cents HIGHER than many local stations.

They had a "gas war" once in Evansville Indiana and I paid a whopping 18.9 CENTS per gallon. Hmmmmmmm that was like around 1968 best I recall. And then there was a gas war?? around 5 or so years ago when it was $1.89 Hmmmmmm Bush and his rich oil buddies lol lol

John T

$2 per gallon would be a real nice thing to have for a few years.
So the station can sell the gas for $2.74 ? I always thought that the stations only made 10 or 15 cents per gallon. My last fill up I paid $3.55.

They can't sell it for $2.74. They are losing money by the truckload.

Each is trying to drive the other out of business. It's a matter of who goes broke first.

(quoted from post at 13:07:27 07/03/13) They can't sell it for $2.74. They are losing money by the truckload.

Each is trying to drive the other out of business. It's a matter of who goes broke first.

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And if one does go away, the survivor will be constantly a nickle or dime per gallon higher than the norm.

AG

I remember around 1965 when Gulftane or Sunoco 190 was going for 15.9 cents a gallon around the Detroit area.

In al. it is illegal to sell gas for a loss to prevent large operators driving out the smaller ones.

Actually, that is not true so long as there is no collusion among operators (which we all know occurs routinely as the retail dealers associations collude to establish uniform prices).

Dean

I believe the Murphy brand is a Wal-Mart subsidiary. They are rountinely placed on or adjacent to the Wal-Mart stores.

It may read collusion, but is enforced as selling below cost.

(quoted from post at 00:22:14 07/03/13) I remember gas wars! Someday kids will be reading about them in history books. A little over a year ago Sheetz opened a facility in our town. They undersold everyone for awhile. When they opened they kinda gave the impression that they would have the lowest prices in town. The other day I was by there and they were 2 cents HIGHER than many local stations.

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They still are , if you have one of their loyalty cards, they give you 3 cents off at the pump just for scanning it. Cards are free, and earn you free drinks and such...

Selling below cost is not illegal.

You can give it away if you desire.

Dean

(quoted from post at 11:45:19 07/03/13) Selling below cost is not illegal.

You can give it away if you desire.

Dean

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That depends on where you are. Wisconsin had a minimum markup law until about 6years ago. Stations were required by law to make 5% profit on road fuel.

(quoted from post at 22:45:19 07/03/13) Selling below cost is not illegal.

You can give it away if you desire.

Dean

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A politician are a lawyer could work on this to his liking...

http://www.lawserver.com/law/state/north-carolina/nc-laws/north_carolina_laws_75-82

BTW I get 5% off a gal. with my PenFed card... As a Merchant it cost me 4% over the normal 2.20% (for a total of 6.20% then other chit they dream up) to take a rewards/cash back/corporate are business card... The Merchant pays the rewards not the card Company .. I am thinking of offering a 5% discount if you pay with cash...

Legally I can charge the customer my processing fees but have to eat the Rewards fee's :twisted:

Gee, I would be pleased with $3.39/gallon. We haven"t had that good of a price here for months. I am not sure if it is true, but I have read that Washington has the highest gas tax in the country.

I remember "gas wars" back in the late 60"s and very early 70"s. I once bought a tank of gas for 18.9 cents/gallon, but it went up a couple of cents the next day. But usually we could get Regular for 23.9 or 24.9 at most "cut rate" stations. The "name brand" stations usually had gas for around 30 cents. Of course there has been a BUNCH of inflation since those times, and the $2.00/hour I was paid at the time would now be probably at least 5 or 6 times as much today.

I had a friend who owned a gas station back then. He said they only made a couple of cents on each gallon sold, so they HAD to sell a lot of volume to stay in business. Also back then there were probably 10 times as many gas stations open as compared to today, at least around here. It seems like the gas prices in a general area are always within a cent of eachother. Collusion, maybe? I haven"t seen a real "gas war" for many years.

Ah, for the good old days, formerly known as "these trying times"! I do hope that fuel costs will come down some soon.

Still is law in Mn, 6% or a certain cent/gal, don't remember exact number.
That was passed a long time ago to prevent the big operators from driving out the small station owners & then jacking up the price.
It is still legal to give away as a prize in a contest or drawing, but not as normal selling practice.
WJ

No connection

I have a Sheetz station near me. They are the first to raise their price and the last to lower it. There is a station 1/2 mile north of them and they sell thier gas at the same price as Sheetz, but they pump it for you. There is a station 1/2 mile south of them that sells gas for around 5 or 6 cents lower than Sheetz.
I don't like Sheetz for that reason.