I see no great mystery here.
- Gas is sometimes sold as a loss leader, particularly by stations
attached to convenience stores, as the profit margins for convenience
stores are relatively generous.
- A gas station owner with some cash to burn might well embark on a
little price war, particularly when prices peak, to put some pressure
- During a surge in gas prices, it may be profitable in the long run
to sell gas at a loss in order to build customer loyalty.
These all boil down to the simple principle that it sometimes makes
economic sense to sell a product at a loss for a short period.
Happens all the time, and a "crisis" is an ideal time to do it, since
you get free advertising from media attention and word of mouth.
Michael Wojcik email@example.com
Yup, appears to be coming from home office. Found a press release that
What I found to be the most relevant part of the release (in regards to this
ExxonMobil is making branded fuel available to its independent retailers and
distributors at wholesale prices below the spot market and NYMEX gasoline
prices. The vast majority of Exxon and Mobil service stations are operated
by individual dealers and distributors who purchase their fuel products from
ExxonMobil and set their own retail prices.
It appears that many (at least here in my area) are going along with
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