Originally posted by BOFH:I don't believe the oil companies set the price of fuel. The only thing they control, just like OPEC is production. They really can't even control the gasoline basic formula as the EPA has a couple of dozen different formuations throughout the USA.
Read up on 'zone pricing' - there are two Exxon stations within a mile of each other here. One is charging $1.999/gal, and the other $2.119/gal. I asked the $2.119 owner why he ALWAYS charges $0.10/gal more than his neighbor and it's because he's in a different price zone. Exxon charges him more for the supplied fuel. Exxon (all of the oil co's actually) definitely has direct control of the selling price of fuel. They base the price of supplied fuel on a variety of factors, including amuont of local competition, local demand, local marketing charges, and local income levels. Giving them a direct hand in the local selling price of fuel.
Oh yeah, the SAME EXACT truck delivers fuel to the two stations.
