Originally Posted by Donger
Here's what you asked:
Is there something about distribution that could explain why a dinky town in the middle of nowhere has cheaper gas than a different rural town that's on a major by-way? There isn't really an easy way to get to Republic, unless the fuel is coming in by train or something.
And my reply:
I doubt it's a distribution thing. Don't forget that retailers can and do set their owns prices (for the most part). The retailers in Republic might set their prices lower respective of each other than compared to the other town. If one station in Republic suddenly sets their price five or ten cents higher than the other stations, people will go to the other stations.
The fos part was you were trying to tell me that there was only a nickle difference and it was probably due to the stations there keeping the price lower out of the goodness of their hearts or something.
There is only one station in Republic, so I doubt there's a price war. And you are basically saying that the stations in a town can get together and jack prices up as high as they want and there is nothing we can realistically do about it, since driving 80 miles out of the way wouldn't accomplish anything and there is no competition to drive the price down?
Here is what I was griping about
Spokane is A, Colville is B and Republic is C. 71 miles between A and B and 52 miles between B and C. Republic has stayed consistent and Colville has doubled in the difference between local gas and Spokane. Makes no sense to me.