{"id":3453,"date":"2008-05-19T07:43:58","date_gmt":"2008-05-19T12:43:58","guid":{"rendered":"https:\/\/www.bridgeandtunnelclub.com\/blog\/?p=3453"},"modified":"2008-05-19T07:43:58","modified_gmt":"2008-05-19T12:43:58","slug":"the_supersecret_law_of_supply_and_demand","status":"publish","type":"post","link":"https:\/\/www.bridgeandtunnelclub.com\/blog\/archives\/2008\/05\/the_supersecret_law_of_supply_and_demand.html","title":{"rendered":"The Supersecret Law Of Supply And Demand . . ."},"content":{"rendered":"

. . . is run through ExxonMobil’s gigantic supercomputers and reflected in mysterious gas prices around the city<\/a>:<\/p>\n

Major oil companies use secret mathematical formulas to figure out the varying price of gas from one city to city — even as specific as one neighborhood to another.<\/p>\n

Gas stations owned by large oil companies, such as ExxonMobil, determine the cost of gas by creating “geographic pricing zones” based on competition from nearby pumps, traffic patterns and the makeup of the local population.<\/p>\n

Oil companies claim they use the formulas to confine competition to the smallest possible area in order to maximize prices at each outlet.<\/p>\n

But independently owned stations set their prices based on the owner’s assessment — factoring in how much it costs to buy the gas from a distributor and the price of his nearest competitors.<\/p>\n

. . .<\/p>\n

The cost of crude itself accounts for about half the retail price at the pump. The rest of the cost is for refining, shipping, taxes and the cost of running the station.<\/p>\n

But why does gas cost so much in Manhattan compared to Staten Island?<\/p>\n

“There are fewer gas stations in Manhattan,” [New York State Petroleum Council lobbyist Cathy] Kenny said. “And there’s even fewer of them since owners figured out that selling the land is a lot more profitable than selling gas.”<\/p>\n

This past weekend, the priciest place to get gas in the city was at a Shell station in Brooklyn and an Exxon station on Staten Island, both of which were charging $4.25, according to newyorkgasprices.com.<\/em><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

. . . is run through ExxonMobil’s gigantic supercomputers and reflected in mysterious gas prices around the city: Major oil companies use secret mathematical formulas to figure out the varying price of gas from one city to city — even as specific as one neighborhood to another. Gas stations owned by large oil companies, such […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23,62],"tags":[],"class_list":["post-3453","post","type-post","status-publish","format-standard","hentry","category-consumer_issues","category-followed_by_a_perplexed_stroke_of_the_chin"],"_links":{"self":[{"href":"https:\/\/www.bridgeandtunnelclub.com\/blog\/wp-json\/wp\/v2\/posts\/3453","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bridgeandtunnelclub.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bridgeandtunnelclub.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bridgeandtunnelclub.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bridgeandtunnelclub.com\/blog\/wp-json\/wp\/v2\/comments?post=3453"}],"version-history":[{"count":0,"href":"https:\/\/www.bridgeandtunnelclub.com\/blog\/wp-json\/wp\/v2\/posts\/3453\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bridgeandtunnelclub.com\/blog\/wp-json\/wp\/v2\/media?parent=3453"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bridgeandtunnelclub.com\/blog\/wp-json\/wp\/v2\/categories?post=3453"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bridgeandtunnelclub.com\/blog\/wp-json\/wp\/v2\/tags?post=3453"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}