Going Green

Monday, May 26, 2008

How is Gasoline Price Set?

The factors that go into setting the price of gasoline at the pump are the subject of this article from the Houson Chronicle.

Cost of oil only start of what's behind price of gasoline

Associated Press

Consider the game of chicken that plays out every day across Pennsylvania State Highway 441. In Marietta, where the road hugs the Susquehanna River, a Rutter's Farm Store gas station stands on one side, a Sheetz gas station on the other.

Kelly Bosley, who manages Rutter's, doesn't even have to look across the highway to know when Sheetz changes its price for a gallon of gas. When Sheetz raises prices, her own pumps are busy. When Sheetz lowers prices, she has not a car in sight.

She calls Rutter's headquarters to report the competition's new price and wait for instructions.
"I call a lot of times and say...(complete article

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