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Secret Formulas Set the Prices For Gasoline

Secret Formulas Set the Prices For Gasoline

SECRET FORMULAS SET THE PRICES FOR GASOLINE
 
	In the article “Secret Formulas Set the Prices For Gasoline,” written by Alexei Barrionuevo, states that there are pricing discriminations within different areas of states and cities.  This kind of pricing is called zone pricing, and it had caused many dislikes among the consumers of gasoline.  Zone pricing, is common practice that oil companies used to boost up their profits.  These companies charge dealers of gasoline stations different wholesale prices based on secret formulas that varies in different locations.  For example, consumers of Potomac, Md. had to pay 26 cents more for a gallon of gas at Bill& Mitch’s Exxon station than at Exxon stations in Southern Maryland.  As an executive director of Service Station Dealers of America stated, “zoning pricing in Maryland has gotten completely out of whack.”  Moreover, many gasoline dealers were angry because they were being charged too much from the gasoline terminals, hence caused their gasoline prices to go up because of their locations.  This would hurt these dealers because many different gas stations would charge lower gasoline prices, which caused attractions to consumers.  For many years, states like California, Oregon,

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