Gasoline and oil are commodities, so the price doesn’t change much from place to place.
Lots of the businesses that sell gas don’t make any profit on it at all. They use gas to draw people in, and sell them other stuff, like overpriced headphones.
The price of gas has more to do with what you’re buying if for than what you’re competitors charge.
The drive around is defensive. If someone says “so and so is dumping gas at below market prices” you can defend yourself by showing competitors prices.
Since the gasoline is a marketing technique, long term below market prices aren’t inconceivable.
Edit:
The real question is “why is the government opposed to low gas prices?”
To be clear there is actually a minimum markup law where I live, so it’s not just anti-dumping.
Lots of the businesses that sell gas don’t make any profit on it at all. They use gas to draw people in, and sell them other stuff, like overpriced headphones.
The price of gas has more to do with what you’re buying if for than what you’re competitors charge.
The drive around is defensive. If someone says “so and so is dumping gas at below market prices” you can defend yourself by showing competitors prices.
Since the gasoline is a marketing technique, long term below market prices aren’t inconceivable.
Edit:
The real question is “why is the government opposed to low gas prices?”
To be clear there is actually a minimum markup law where I live, so it’s not just anti-dumping.
This is supported mostly by old school Democrats.