The only thing that distinguishes brands is the fraction of a percent of proprietary additives dropped into tanker trucks before delivery to retail gas stations, according to the Consumer Reports organization.
So why can the price per litre differ significantly at stations only blocks apart?
The answer can help you save hundreds of dollars per year, says Consumer Reports. It says differences trace back to who owns the pumps.
In the United States, gas stations that sell a specific brand of gas may be owned and operated by the oil company and leased to an independent dealer, or owned by a "jobber" who contractually commits to buy branded gas from that company. Independent stations can buy wherever they can get the lowest spot price.
While Consumer Reports' did not take the differences in supply channels and marketing between Canada and the United States into account in their suggestions, the differences are minor, the organization's conclusions and tips are valid here.
CR says the underlying costs for each business arrangement can dramatically affect the price at the pump. Prices can vary within the same brand because of zone pricing, a practice in which oil companies adjust their wholesale prices to the prevailing rates in different parts of town to keep their stations competitive and profitable.
Contrary to popular belief, independents don't always have the best deal, CR claims.
SMART SHOPPING FOR GAS
When oil prices are relatively low or falling and supplies are adequate, independent gas stations tend to have the lowest prices because they're free to shop around. Super-size independents or hypermarketers, can afford to market gas for little profit; convenience-store gas independents make more profits selling coffee and cigarettes than gasoline.
When oil prices are relatively high or rising and supplies are tight, brand-name gas stations will tend to have a pricing edge.
That's because the brand-name companies make sure their own stations get scarce supplies first, at contract prices that insulate them somewhat from hikes. Scarcity pushes up spot market prices and independents' costs.
Break the same-station habit. Instead of always filling up at a familiar gas station, monitor prices all along your normal travel routes and buy where they're lowest.
Avoid airport gas-price traps. Rental-car agencies' overcharging to refill the gas tank on returns tends to push up prices at gas stations near airport car rentals. Don't wait until the last minute to gas up.
Buy out of town. If you are passing through or live near a town that frequently has lower gas prices, such as Chilliwack in the Lower Mainland, fill up there.
Blogalaxia Tags: oil,gas,prices
