How you can help to bring down the gas prices
By jonesy123
@jonesy123 (3948)
United States
May 15, 2008 8:25am CST
We all know that one way to bring down gas prices is through demand reduction. We drive less and such in order to use less. Now I just heard a report about another method to reduce costs. Most people don't realize it, but everytime you pay with your credit card at the pump, or anywhere else for that matter, the merchant has to pay the credit card company. The cost for this convenience is passed on to all consumers through respectively higher prices. In this case, the gas prices are higher by up to 8 cents. Have you ever seen those signs at the gas stations where you can get the gas cheaper, when you pay cash instead of credit? That's why!
Now, if we all would stop whipping out the plastic at the pump and pay cash instead, we might be able to curb drive down the gas price a bit;)
1 person likes this
4 responses
@spalladino (17891)
• United States
15 May 08
That would work if the independent station owners had any control over the price at the pump. Unfortunately, they don't. I live in a very small town and personally know the owners of the two (yes, two) gas stations we have which always have the same exact price per gallon. BP and Marathon tell them what price to put on their pumps...they have no say so about it.
@jonesy123 (3948)
• United States
15 May 08
I know that big oil dictates the price at the individual pump, but if the overhead is cut down a little in form of less credit card expenses, wouldn't that help in lowering the price or delaying the next increase? Or are the individual owners stuck with those? I have seen chain gas stations offer the discount, if you pay cash, namely some Marathon stations. I also know that at least some gas stations use the 'dicated price' as a base and then add a cent or two, or three or five.
@spalladino (17891)
• United States
15 May 08
The chain stations who offer discounts for cash are doing so with the premission of their distributor. Our Marathon doesn't participate in that because he doesn't bring in enough revenue so Marathon won't approve it. Paying by cash does help the station owner, who normally makes less than $100 profit a day on the sale of gas, so if you happen to care about your local favorite gas station, it would be a good thing to do.
@SunnyBuddy (443)
• India
15 May 08
It may be true that the price is more when we use credit cards but it is only a way to pay less for the gas. The gas prices can be reduced by use of renewable sources of energy. The prices of goods generally depends on their availability, necessity and abundance. If we shift to renewable sources than their cost decreases due to less demand.
@jonesy123 (3948)
• United States
15 May 08
True, unfortunately much research still has to be done in that area to make it feasible for the masses to use alternate and renewable fuel and energy sources.
@kareng (80243)
• United States
16 May 08
That wouldn't change a thing, because there will always be people who use the plastic. Now if everyone went out and bought a sub-compact car or hybrid and all got 50mpg, that would hurt them because you wouldn't be putting gasoline into your car multiple times per week.
@akonangato (83)
• Philippines
15 May 08
Prices are moved according to the law of supply and demand. Supply of oil is really becoming very low which is why prices are skyrocketing. Bringing down the price of gas would be futile if we can't bring up the supply of oil. The best alternative would be to start using hybrid vehicles.
@jonesy123 (3948)
• United States
15 May 08
True, but every little bit helps. If we can drive down the price just a little bit or delay the next price increase by a bit, it would help us consumers just a bit, don't you think?
