Gas Price War

[Micah 16]

My area of Houston making national news is something incredible to hear. A new Chevron station opened up today next to an older Shell station and the two went to war:

Price War Drops Gas Below $3

HOUSTON - A gas price war that has fuel selling for less than $3 a gallon turned into long lines for two northwest Harris County gas stations, KPRC Local 2 reported Tuesday. Two gas stations on Eldridge Parkway at FM 529 started the price war at about 3:30 a.m. on Tuesday.

Word quickly spread and long lines formed when gas prices kept dropping. At one point, the lines continued onto the street and created gridlock.

At 3 p.m., gas was selling for $2.85 a gallon at the Shell station and $2.83 a gallon at the Chevron across the street. 

By 5 p.m., Chevron sold gas for $2.39 a gallon while Shell dropped its price to $2.49.

At 6 p.m., the price fell to $2.34 for Chevron and $2.37 for Shell.

Even big rigs got in on the action when diesel dropped to $3.69 a gallon.

"We're just having a friendly competition and it's a good thing for the customers. They're getting a good deal out of it, so everybody's happy," said Sunny Gill, Shell's manager.

Chevron ran out of gas by 6 p.m., but a new shipment was expected within an hour, so drivers just parked and waited.

"A girlfriend of mine told me about it and I came running over," customer Terry Jackson said.

There's no word on how long the gas price war will last or how low prices will go.

"We set a mark at 99 cents. I?m thinking maybe they should stop, too, by then," Gill said. "We're just going back and forth until they stop."

The initial price drop was part of a grand opening celebration for the Chevron.

The average gas price in Houston on Tuesday was $3.62 and diesel was $4.44.quote>

$2.37? If only I knew this was occuring at the suburb-town right next to me.

[Tia-may 0]

I've never seen gas prices actually fall for sometime. The last time I remember the last period of price falls in the UK was aftermath of the aftermath of the Katrina hurricane.

[GMT 389]

you lucky ba... over in the states.

you know what a german (respectively european) price war looks like?

-> how far can we rise prices until the stupid cutomers realize were cheating. all over the world, gas prices are dropping, but here, they're rising over the last few days, now close to 1.50€/liter again (making it about $9/gallon) after it was down to 1.40€/liter last week.

and for whatever reason, all the different companies rise their prices alike, what a coincidence...

once, the german monopolies and merges commission aimed at the oil companies for illegal pricing agreement. guess what happened... nothing. no real evidence. sure. take a look at the gas prices, morons!

same'll happen now as they go for the gas companies cuz they raised their prices almost 100% in the 15 months (did I mention that the gas prices are linked to the oil prices here? that's why gas is ridiculously expensive aswell)

I know why my move to the states comes closer every day...

[patriots_1228 51]

erm...my town has an intersection with 3 gas stations on 3 of the corners. rather than a war, they have made a truce and they all ar 3.88 or whatever

[Easy Bakes 253]

But how much is your time worth to travel and wait in line to save

15 dollars on a tank of gas?

[Xyloxadoria 1,099]

The gas prices here (Kansas City) have been going down but there is still about a 25 cent diffrence in the highest and lowest prices here. Theese are the avarages

Today	$3.659/gal
Yesterday	$3.675/gal
One Week Ago	$3.795/gal
One Month Ago	$4.010/gal
One Year Ago	$2.709/gal

[Duke87 1,070]

Okay, those gas stations are definitely losing money there. Not wise business at all.

In any case, the cheapest gas in town here is still $4.09. The interesting part is that it's at the exact same gas station (the Shell at West Broad Street and Mill River Street) which a few weeks ago had the most expensive gas in town, at $4.79.

[hym 358]

Originally posted by: Duke87 Okay, those gas stations are definitely losing money there. Not wise business at all.

In any case, the cheapest gas in town here is still $4.09. The interesting part is that it's at the exact same gas station (the Shell at West Broad Street and Mill River Street) which a few weeks ago had the most expensive gas in town, at $4.79.quote>

It wasn't about making money, but rather, opening with a bang.  The new Chevron wanted to get noticed, and a price war is a good way to do that.

[patriots_1228 51]

gas is going down about 10 cents a gallon each week here

[TEG24601 32]

We just broke $4 about a week ago and are continuing to drop (about an hour east of Portland, OR). PDX is down around $3.87 and continuing to drop. If oil prices continue to fall as they are, AND people continuing to conserve, I expect $3/gal gas by December.

As for Europe, your problem is really taxes, bring them down to the same level as the US and you'd be paying around $4.50/gal right now.

TEG

[Easy Bakes 253]

Droped below 3.50 Yesterday in dallas.

[Micah 16]

The two stations had another war yesterday bringing the price all the way to $2.08. However, both stations agreed that the war was over and the prices came back up around $3.40ish.

[belfastuniguy 18]

This is nothing new in the UK. Petrol stations operated by the supermarket giants are always competing to lower prices, once one lowers it, the rest follow suit. The petrol sales are nothing compared to billions upon billions they made in food and general shopping. So they can sell petrol much more cheaply.

[djrules5454 5]

^^^ That's why, here in the states, retail stores like Costco, Home Depot, and Sam's Club can sell it cheaper than most places.

[reducexx 0]

^^^^

Don't Forget Vons....

[Hummer bob 1 4]

Here in New York, gas is over 4.00, depending on where you buy it. The area in which you live in can defiantly have an influence on the price of gas. However, I have noticed the drop in gas here.

[jammy 0]

So does this prove that oil companies can still make a profit with petrol under $3 a gallon

if so this petrol price war has opened a can of worms which needs to be strongly persued.

[krbe 193]

Originally posted by: jammy So does this prove that oil companies can still make a profit with petrol under $3 a gallon

if so this petrol price war has opened a can of worms which needs to be strongly persued.quote>

No it doesn't. Nothing hinders them in losing money; and all businesses do this to some extent. It proves that they're willing to go to great lenghts to be percieved as a company that's not just out there to screw you and your wallet. Margins on petrol aren't great; maybe bigger in the US, but I doubt manned stations could survive just selling petrol.

[jammy 0]

when I say petrol I do mean all kinds of 'gasoline' products (diesel, petrol, autogas etc)

[Haljackey 17,268]

Sometime gasoline shortages are good thing if you want high octane and they only run out of low octane:

Two hits in 1 week!