At 01:54 PM 3/7/2004 -0800 Damon Agretto wrote:
>You also have to consider the cost-of-living factor. I
>know, FREX, that its overall cheaper to live in PA
>than in NJ. Gas sellers will only try to sell gas at
>the highest price they think the market will bear.
It is also important to realize the full economics of gas. When you fill
up your tank with gas, you aren't only paying for the extraction, refining,
and transportation of the gasoline, plus some amount of taxes, but you are
also contributing towards the lease of the land the gas station is on, the
property taxes of the gas station, and the salaries of the employees. In
New Jersey in particular, all gas stations are required to be full-serve by
State Law, which is partly why the State keep the gas taxes lower.
Likewise, the land-costs of the gas station will be much higher in an inner
city than in an outer-suburb.
Most gasoline is sold as a loss-leader by the gas station. This is
particularly true in States like Pennsylvania and New Jersey where
discount-marketers like WaWa, Wal-Mart, and Sheetz have helped drive down
the price.
JDG
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John D. Giorgis - [EMAIL PROTECTED]
"The liberty we prize is not America's gift to the world,
it is God's gift to humanity." - George W. Bush 1/29/03
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