Gasoline
prices are set within OPEC supply controls which adjust to demand.
They also are affected by the value of the U.S. dollar.because
they’re priced in dollars.
Gas
stations actually have little to do with pricing. Stations earn an
average between 10 and 15 cents on a gallon. When prices climb, gas
stations see their profit margins shrink in order to remain
competitive; they then earn less per gallon.
Their
credit card fees are about 2 ½% of all purchases, a significant
factor affecting their margins.
Furthermore,
gasoline prices go up faster than they go down. That is the way
supply and demand normally influence wholesale and retail gas
pricing.
Yet
gas station operators usually are blamed when high gas prices
occur.(See the Earl J Weinreb NewsHole® comments.)
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