Gas dealer are getting low profit margin in gas price increases
Gas dealers are seeing a slide in profit margins from an increase in gas prices. Gas dealers are experiencing 20 year low. The article stated that the decrease in profit is due to more individuals using credit cards to pay for gas. In addition, more consumers are purchasing unleaded gas as opposed to premium. Gas dealers are finding they have to find other ways to stay competitive. For example, Chevron in Los Angeles is offering 10 cents off gas if you get your car washed at their station. This is truly economics at work. The pressure builds and companies have to find a way to survive the market.