I'll admit that I feel a bit sheepish today. I've always thought and taught that gas prices are set by supply and demand. But today, I'm happy to admit that I'm wrong. Very wrong. Gas prices are set by 11 people in a faded blue trailer in Sanford (NC) who:
... are responsible for setting the gas prices at the 1,639 stores owned by The Pantry, the Southeast's leading independent convenience store chain. They crunch numbers, run data and transmit new prices to each of the stores every day but Sunday.
Mark Holmes, who leads the team, calls what they do there a "never-ending puzzle," balancing the need for profit with the need to sell more gallons and keep up with the competition.
...
Nine- and 10-hour days are typical, but Sizemore was expecting the worst because the market that determines the daily price of gas sold to The Pantry and other companies had closed higher, a substantial 91/4 cents, the previous night.
That increase meant that all gas sellers would be making big price adjustments.
There were other factors: Wildfires in Florida had triggered a state of emergency. A report predicted a rough hurricane season. And several refineries were shut down.
Then there's the competition.
"I can say, 'Go up 10 cents,' if I want, but if I'm at $2.60 and the guy across the street is at $2.50, I just lost a ton of business," Holmes said.
The stereotypical gasoline price gouger (sarc) is an already rich man in a dark suit. Who would've thought that it was former teacher in a trailer drinking too many Mountain Dews? Not me!
