A Tale of Two Gas Stations

It’s like that scene in Steinbeck’s The Pearl where the pearl buyers are all lined up in a row, giving the illusion of competitiveness but they’re really in cahoots with one another. Except the pearl is your car and the peasant wins, temporarily.

    “A gas station’s credit card promotion in Pennsylvania turned into a 7 hour price war with a competitor.

    Both Latrobe Pennsylvania stations started out Tuesday with regular unleaded for $2.89 a gallon.

    A BP station countered by offering the first discount. The independent station across the street took their price a few cents lower.

    Within a couple of hours both stations were selling for $2.36 a gallon and drivers were lined up for blocks.

    Just before 9:00p.m. both stations gave up the fight. They raised their prices back to where they started Tuesday.”

Pennsylvania Gas Price War” [WZZM13]

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  1. RandomHookup says:

    So how exactly is this a credit card promo?

    Most people won’t take a coupon for an item they are planing to buy even if you hand it to them, but will wait for hours to save $8 on gas. We put way too much emphasis on the cost of gasoline versus all our other purchases.

  2. Mary Marsala With Fries says:

    I love the fact that we’re so used to non-competition in the oil market that when two gas stations actually compete (for less than a day), it makes the news. -M.