Gas prices, after spiking upwards, have now declined for 30 consecutive days, per Gasbuddy. That's good news for drivers, but terrible news for gas-station owners.
- The pattern of a sharp rise and then slow fall in gas prices is the worst possible dynamic for such businesses.
How it works: "Stations tend to hold back price increases to hold onto customers," said Jeff Lenard of NACS, the trade association for convenience stores.
- As the WSJ explains, when the gas station refills its own tanks, it buys weeks' worth of fuel — sometimes months' worth, in the case of diesel — at a single high price.
- If prices then start to fall, the gas station is forced to sell at below its own cost.
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