by oiless » Sun 10 Jul 2005, 00:16:47
What I see here on the west coast of Canada is a lot of independant stations closing. It looks like economic terrorism to me. They run low on gasoline and are forced to fill their tanks at the going rate from their suppliers. Once that gas is in the underground tanks they are stuck. The franchise station "owners" are guarteed a profit, 2 or 3 cents a litre as near as I can tell, but their prices are set by head office.
So, the little guy fills his tanks with gas at say, 82 cents a litre. The franchise staions around him all drop their prices in unison to 79.9 cents a litre. The independant either stays high and sells no product, and has no customers buying pop, candy, cigs, etc., or he sells his gasoline at a loss.
I spoke with an independant a few days ago who was selling gas for 4 cents a litre less than he paid for it, simply to remain competitive with the Esso accross the street.