Prices Force Station Owners To Stop Selling Gas

Some gas station owners in Wisconsin have stopped selling gas because of the high prices. Apparently, the high prices are forcing them to run with profit margins of less than $0.03 a gallon and that is usually eaten up by credit card processing fees.

The article says that, at 3% per gallon of gas sold, credit card processing fees are the second biggest expense to the gas station.

Doesn’t it seem reasonable that this is just going to drive prices up further? After all, with competition closing up shop, the guy across the street can afford to raise his price without fear that the customer will go elsewhere. This also solves his margin problems and brings him/her back into the black.

Here’s a link to the original Article:
http://www.whiotv.com/automotive/13381672/detail.html?rss=day&psp=irresistible

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s