No Embargo But Gas Lines Are Forming

Discussion
Aug 04, 2003
George Anderson

By George Anderson


It is amazing how far consumers will go to save a few cents on a gallon of
gasoline. Pump up the savings to 20-cents or so a gallon and watch the lines
starting to form.  


Giant of Carlisle and Sheetz are selling gallons of gas for $1.19 compared
to $1.45 being charged by gas stations in the Cumberland County area of Penn.,
according to a Shippensburg Sentinel report.  


Robert Smith, owner of a landscape business, did not have time to wait earlier
in the day so he came back later to fill-up his truck and three five-gallon
gas cans.  


Sam Cressler, owner of Cresmart, says he can’t compete with the prices being
charged by Giant and Sheetz. Referring the $1.19 a gallon price, he said, “That’s
20 couple cents less than cost.”  


Moderator’s Comment: Does selling gasoline below cost
amount to anti-competitive behavior?


Sam Cressler would certainly come down on the yes side
of the question. Consumers might even agree with him. The problem is, however,
most consumers don’t care why prices are so low, they are just happy they are.

[George
Anderson – Moderator
]

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