The cost of gas: How two stations set their prices

HAVERTOWN, Pa. – Steve Kehler spends most of his time working on cars or managing paperwork at the auto repair shop and gas station he runs in this Philadelphia suburb.

Unless an overnight gas shipment forces him to play another round of pricing roulette: Should he raise prices to keep up with pressure from his wholesaler? Or will that kill sales?


“It’s not an exact science,” he said.

Earlier this week, Kehler’s wholesale price jumped by 4 cents a gallon. The price is set by Sunoco Inc., from whom he leases his gas station and is contractually obligated to buy.

Shipments arrive overnight, whenever a remote sensor tells Sunoco that Kehler’s tanks are low. The wholesale increase means Kehler will have to raise his pump prices soon