Greensboro, NC -- Depending on where you live, gas prices can be 10 cents cheaper on one corner than the next corner, why is that?
While it doesn't make sense to the untrained eye, it's a matter of how gas stations operate.
Gas station owners say they make pennies on each gallon. The price difference is really due to competition.
For example, say one station gets two or three shipments of gas a day, and a gas station just down the road gets only one shipment of gasoline.
If both stations pay $3.50 a gallon for gas in the morning, and the price goes up as the day goes on, the station who has to buy new shipments that are more expensive, will be forced to lose money to stay competitive.
However, the next day, if both stations pay $3.55 a gallon for their first shipment in the morning, and the price drops as the day goes on, the second station has to choose whether it wants to lower its price or lose out.
If the second station can't afford to lose money on its shipment of gas, you end up with two different prices for gas at two stations a block apart.
The bottom line is, gas station owners don't price gas to recover what they paid for it, rather, what it would cost to buy more and what it costs to remain competitive.
You can always find the lowest gas prices in the area by using the WFMY Gas Guide.
WFMY News 2