For any car owner, the topic of gas prices will always be important. From price hikes to rollbacks, vehicle owners only have information to gain when tuned in to these topics. While the price changes are often declared in the news, one must have come across other gas stations that show otherwise, perhaps cheaper than pricing from usual gas stations.
If you are one of those people who have wondered why the prices of gasoline change depending on locations, you’ve come to the right place. The easy answer to the question, turns out to be that there is no single answer, but rather a collection of factors at play.
Price
The price is usually determined by retail managers. They use a variety of factors to determine the price of the fuel, one of which includes the price of the fuel when it was purchased from suppliers or distributors.
Cost of transport
The price of fuel will also depend on how much it takes to deliver the fuel from the depot all the way to the station. With this, you can see why in far-flung areas, the cost of fuel is higher than usual. This goes the same as in expressways. Gasoline prices along expressways tend to be higher compared to those you see when exiting the central business district. If you ever noticed, gasoline prices are usually much lower in big urban centers such as Manila and Cebu as these are highly developed areas.
Competition
Competition from other companies in the area is another factor. This catapults into a “price war” among similar establishments, which usually brings about lower prices in an attempt to be competitive, while the absence of competition results in higher prices.
For the everyday customer what this means is that the prices of gas stations are not raised at whim but are still reasonably priced, with permission from the petroleum company’s main office.
Learn more about how gasoline stations work by checking out more of our blogs. When it comes to solutions for gasoline stations, we have a variety of products that a gasoline station equipment needs such as our gasoline pumps and fuel dispensers. At the same time, we provide services such as tank calibration and tank testing for your service station equipment. To learn more, look no further than TOIC Solutions with our expertise.
