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Saturday, October 11, 2008

This Isn't Price Fixing?

2.87 Sam's Club
1572 N DuPont Hwy & W Rustic Ln
Dover
Oct 11,1:24 PM 1572 N DuPont Hwy & W Rustic Ln Dover Oct 11, 1:24 PM

3.07 Sam's Club
2700 N Salisbury Blvd & Northpointe Dr
Salisbury
Oct 10,7:00 PM 2700 N Salisbury Blvd & Northpointe Dr Salisbury Oct 10, 7:00 PM

Look, everyone knows I appreciate Sam's Club delivering lower prices to our area but one has to be fair and ask, how can they be $ .20 cents a gallon LESS than their other location not that far from Salisbury?

Granted, Sam's Club is MUCH lower than those Kratovil Gas Stations locally but this is ridiculous. Americans are being cheated and just like the Stock Market, OUR GOVERNMENT is once again proving they cannot monitor or regulate certain businesses they have every right doing so.

Close your eyes Congress and line your pockets. It certainly pays to be a Politician these days, doesn't it?

32 comments:

Anonymous said...

The better question is why are the other gas stations 20 plus cents higher than Sam's?
If we expect the Govement to regulate every aspect of our life, including gas prices, you will see prices much higher than they are now.
One of the primary reasons oil has dropped to $80 dollars a barrell is supply and demand. We are not demanding as much oil so they drop the price.
You do not for one minute believe the Govment would ever be able to make that happen do you?

You got to feel sorry for the Socialist among us!

BossHogg said...

The answer is simple.

State Gasoline Taxes.

Maryland has some of the highest taxes of any State in the union.

Dover has always had *THE* cheapest gas between the Virginia line and New York City.

Anonymous said...

I would say part of it could be the difference in the amount of taxes the State collects on the gas.

joe albero said...

Boss Hog,

I believe you're wrong and let me explain why. Delaware has always been more money than Maryland. I live in Delaware and let me assure you, it was cheaper buying gas in Maryland the past two years.

Anonymous said...

Does the gasoline have to meet the same environmental standards? I know they can vary by state/region, and the supply for them differs. I'm sure the taxes differ between Delaware and Maryland too.

joe albero said...

There are already laws on the books for price fixing. The government also keeps tabs on the volume accurately coming out of the pumps as well, or they're supposed to anyway.

There's not a single gas station that is listed on the gas reports in Delaware over $3.00 a gallon. Every single one is below $2.98 or less.

As a matter of fact, here they are.



MARYLAND - DELAWARE GAS PRICES:
Lowest Gas Prices in Cambridge, Ocean City, Salisbury

Price Station Address City Time
2.99 Valero
1020 Eastern Shore Dr & E College Ave
Salisbury
Oct 11,6:00 AM 1020 Eastern Shore Dr & E College Ave Salisbury Oct 11, 6:00 AM
3.07 Sam's Club
2700 N Salisbury Blvd & Northpointe Dr
Salisbury
Oct 10,7:00 PM 2700 N Salisbury Blvd & Northpointe Dr Salisbury Oct 10, 7:00 PM
3.09 Shell
900 Snow Hill Rd near east college ave
Salisbury
Oct 11,6:00 AM 900 Snow Hill Rd near east college ave Salisbury Oct 11, 6:00 AM
3.09 Royal Farms
941 Snow Hill Rd & Beaglin Park Dr
Salisbury
Oct 11,6:00 AM 941 Snow Hill Rd & Beaglin Park Dr Salisbury Oct 11, 6:00 AM
3.09 Royal Farms
1401 Division St & Dykes Rd
Salisbury
Oct 11,6:00 AM 1401 Division St & Dykes Rd Salisbury Oct 11, 6:00 AM
3.09 Wawa
670 S Salisbury Blvd & Maryland Ave
Salisbury
Oct 10,8:37 PM 670 S Salisbury Blvd & Maryland Ave Salisbury Oct 10, 8:37 PM
3.12 Exxon
31997 Beaver Run Dr & Walston Switch Rd
Salisbury
Oct 11,6:00 AM 31997 Beaver Run Dr & Walston Switch Rd Salisbury Oct 11, 6:00 AM
3.12 Exxon
501 Spring Hill Rd & Isabella St
Salisbury
Oct 10,8:37 PM 501 Spring Hill Rd & Isabella St Salisbury Oct 10, 8:37 PM
3.18 Chevron
100 60 Foot Rd & US-50
Salisbury
Oct 11,6:00 AM 100 60 Foot Rd & US-50 Salisbury Oct 11, 6:00 AM
3.18 Wawa
2740 N Salisbury Blvd & Dagboro Rd
Salisbury
Oct 11,3:08 AM 2740 N Salisbury Blvd & Dagboro Rd Salisbury Oct 11, 3:08 AM


Maryland Gas Prices provided by GasBuddy.com
Lowest Gas Prices in Dover, Georgetown, Laurel, Seaford

Price Station Address City Time
2.87 Sam's Club
1572 N DuPont Hwy & W Rustic Ln
Dover
Oct 11,1:24 PM 1572 N DuPont Hwy & W Rustic Ln Dover Oct 11, 1:24 PM
2.89 US Gas
461 N Dupont Hwy & Townsend Blvd
Dover
Oct 11,1:23 PM 461 N Dupont Hwy & Townsend Blvd Dover Oct 11, 1:23 PM
2.92 Royal Farms
295 S DuPont Hwy & S Bay Rd
Dover
Oct 11,1:24 PM 295 S DuPont Hwy & S Bay Rd Dover Oct 11, 1:24 PM
2.94 Gulf
1104 S State St & S Dupont Hwy
Dover
Oct 11,1:23 PM 1104 S State St & S Dupont Hwy Dover Oct 11, 1:23 PM
2.94 Wawa
1450 Forest Ave & Mifflin Rd
Dover
Oct 11,1:23 PM 1450 Forest Ave & Mifflin Rd Dover Oct 11, 1:23 PM
2.94 Valero
1491 S Governors Ave near Gunning Bedford Dr
Dover
Oct 11,10:45 AM 1491 S Governors Ave near Gunning Bedford Dr Dover Oct 11, 10:45 AM
2.94 Valero
1612 S DuPont Hwy near Webb Ln
Dover
Oct 11,10:45 AM 1612 S DuPont Hwy near Webb Ln Dover Oct 11, 10:45 AM
2.95 Valero
530 N Dupont Hwy & Garden Ln
Dover
Oct 10,4:41 PM 530 N Dupont Hwy & Garden Ln Dover Oct 10, 4:41 PM
2.97 Gulf
2490 Forrest Ave near Sharon Hill Rd
Dover
Oct 11,1:23 PM 2490 Forrest Ave near Sharon Hill Rd Dover Oct 11, 1:23 PM
2.97 Gulf
595 Forest Ave & S West St
Dover
Oct 11,1:23 PM 595 Forest Ave & S West St Dover Oct 11, 1:23 PM

joe albero said...

Like I said earlier Folks, gas has always been higher in Delaware than Maryland.

So many times when we head north on Rt. 13 I look at the gas prices in Delaware and say, this is unbelievable! Their prices are always higher and I always gas up at Sam's Club because they are ten to twent cents per gallon less.

Now all of a sudden their prices are lower? When the corporate office at Sam's Club called me, I told them flat out, they shouldn't be pricing their gas less than the other local stations. They should be marking their gas up at a certain percentage over COST.

As a Member, I felt this was only fair and it would keep everyone else honest. Wouldn't you agree? Instead, (even Sam's) they're making a small fortune from the other stations near them trying to keep prices up and making a larger profit. It's wrong, period.

While I'm paying for a Membership and spending more than a thousand dollars a month in their store, I expect and deserve respect and I deserve to be treated honestly.

Now, if they, (Sam's Club) want to lose my business by showing a twenty cent difference from one store to the next, I'm going to take care of a local business owner first then and buy all my gas elsewhere.

This is a scam that must be stopped.

Anonymous said...

Say it aint so Joe, Have you seen the light???

Anonymous said...

I absolutley agree with Joe. I work in Delaware and their gas has always been higher than here in Maryland.

Almost everytime SBYnews picks up on the skewed prices at Sam's, they immediately reduce it.

I'll bet you they'll adjust it by morning as SBYnews travels 'faster than lightning' across the shore.

I hope you continue to stay on them.

Mardela said...

I don't think gasbuddy has the correct info all the time. There were plenty of stations in Salisbury today that were under $3 a gallon. The lowest I saw was 2.91 on 13N b't rt 50 and the hump.

I'm still going to support Sam's because they have taken care of me for quite some time. But I agree Joe, keep them honest (if that's possible).

Could the lower prices in Delaware be because of a suspension of some tax? I thought I heard Biden say something about that.

Anonymous said...

I often drive between Elkton and Chincoteague, and, Joe, you're right, for the past several years gas has always been cheaper in Salisbury UNTIL THIS YEAR. This whole summer, gas was less in Delaware - often Smyrna was the lowest price.

Don't forget, MOM's tax increase that took place in January.

Tim Chaney said...

You are right Joe, my sister lives in Georgetown and she always waited until she came down here to gas up because in the past it was always more up there. Good question by the way.

Mardela has a point, however I don't know if they suspended or reduced that factor.

Anonymous said...

Delaware uses a summer blend gas (think California) until Oct. 1st, that's why they now seem so cheap. However, still doesn't explain why Oasis in Laurel was $3.07 earlier in the week, their Maryland store (Delmar, MD Hardees) was $3.12 (taxes = 5cent higher, ok) but Sam's was $3.17, Wawa was $3.21 and Gordy $3.26. That's 14cents difference between Hardess and Gordy.

Anonymous said...

the gasoline used in Delaware and Maryland have two completely different requirements for environmental standards. They have to purchase the gas from different refineries. The gas in MD primarily come from around the gulf of mexico, and they've been having problems with distribution over the last month or so. Supply of that gas went down, so the price went up. Simple economics. I guess DE has had a better supply, so their gas is cheaper. It's not price fixing, because the cost of the gas from the refineries varies based on the environmental regulations set forth by each individual state.

Wymzie said...

Joe,

I don't disagree with you about the DE gas prices, but for some reason Billy and I have always found when traveling north that the cheapest gas is in Dover. I am wondering if this may be a Dover anomaly? With the Air Base there, I am wondering if possibly that has something to do with it?

joe albero said...

anonymous 9:18,

With all due respect, how can they be thirty cents cheaper per gallon if their quality of gas is even better than ours?

You make no sense, sorry.

Mardela said...

One other factor to consider is that the different brands have different additives that they use. This is why you have a difference in price between a Shell and an Exxon. The cheapest of them all don't have many if any additives. Just like with all products, the cheapest isn't always the best. For people that get a new car every couple of years, they don't care about the brand and additives, but for some, they want their car to last 10-15 years and 200,000 miles.

Anonymous said...

I am originally from Salisbury, and currently live in Southwest Florida now-you guys have it GOOD! Here it got down to $3.55 a few days ago and earlier today i actually saw $3.32-and i thought THAT was a good deal!!! I know taxes make a difference but it just stinks when I hear my mom tell me how much money she saves compared to me when it comes to gas...

Anonymous said...

Not to bash on you too much Joe, but how can you get on the gas companies about price gouging and get on the government for not doing anything, but at the same time support McCain. McCain believes in de-regulation, which is exactly what the problem you are having right now with gas. I wouldn't say to vote Obama for this one reason. But you really shouldn't get on the Democrats case if you agree with them. Especially on a topic that is as big as Government regulation and price gouging. And remember, the more we regulate, the more we become a socialist society,

Anonymous said...

Joe , it is price fixing. It's
called lazy business. They use other businesses to set the market price. Now that you have exposed
them they will lower their prices.

I see the station in Nanticoke
has is keeping up as the price is lowered. They are still very high.
Around $3.30

Anonymous said...

Delaware black powder deer
season
opened this weekend, perhaps they are trying to make some extra money from all the hunters up and about early.

Anonymous said...

Outta bed sleepy heads.

Anonymous said...

thanks! heading north today and now i know to wait to fill up!!

Tax Guy said...

A few things I've recently learned about fuel, from a client of mine who is a Shell retailer.

1. Unbranded gas has no additives, and is basically the duff of the distribution center. Branded gas and unbranded gas comes from the same refinery/distribution center, but the Shell or other branded gas has additional additives put into the load for the specific brand. I always thought that this was just marketing until I took my buddy who sells Shell gas up on a challenge. In my Camry, I can consistently get around 510 miles to a tank, where the unbranded gas is around 440 miles to a tank. That's a difference of about 2 gallons. At $3 per gallon, I save over $6 per tank, while only spending about $.75 more per tank. I'll never buy unbranded gas again. It's simple math.

2. Every gas load he buys has a delivery charge. When the gas is getting delivered to his station out of Delaware City, not Salisbury (when distribution isn't available) he pay a lot more for delivery charge for the load. This explains why your Delaware fuel is cheaper right now. If there are problems with local delivery (and there have been this year) the further from the distribution center, the more the dealer pays.

There are so many factors in why prices are one way or another in a free market economy. To call a price difference between 2 different Sam's Clubs price fixing is just plain ignorance.

Anonymous said...

Last night at 7pm my husband and I were going out to pickup some subs for dinner. As we were driving we noticed two gas stations at $2.99. They were Grants on Rt 50 and the Valero on Mt. Hermon acrossed from the Twilley Center. I had to take a double take, because I could not beleive my eyes. All I can say is, it's about time the prices come down.

Anonymous said...

Whats wrong with PROFIT? Prices that are too high will take care of themselves by consumer rejection. Geez, Its starting to sound around here and across the country that we are beginning to prefer socialism. If the price is out of sorts go somewhere else or ride a bike. Bailouts, rescue plans, government handouts and entitlements will be the end of life as we know it. Its like this friends, as I once heard about the stock market...bears make money( selling on he down side)...bulls make money (selling on the up side) and hogs,,well hogs they just get slaughtered! People overcharging will have short term gains and long term lack of buyers or customers. People get what they get by doing what they do. Relax

BossHogg said...

I believe you're wrong and let me explain why. Delaware has always been more money than Maryland. I live in Delaware and let me assure you, it was cheaper buying gas in Maryland the past two years.

Joe: I believe you are right since you do live in DE and know the market better.

Maybe it could be the load cost...

Prices flucuate daily as we all know but you pay for whatever you buy as of the date of delivery, unless you have 'futures contracts' which I doubt the station owners play.

It beats the heck out of me why there is such a difference.

Anonymous said...

I wonder if they have a fuel surcharge on delivering fuel? LoL

Anonymous said...

My original thoughts were exactly as Boss Hogg stated. Fuel Taxes. But Joe's correct, DE gas has always been on par if not higher than gas on the Eastern Shore. On the subject of price fixing, I can remember that one of the most expensive places to purchase gasoline on the shore used to be in Easton, where prices were typcially 15-20 cents higher than you could purchase it in Cambridge, just 12 miles south!!!! And when you think that gas is higher in some places because of the transport costs, consider that gas on the Eastern Shore of Virginia, at the Royal Farms just across the line used to be the cheapest around and to get it there, it all had to come from the North because you can transport gas across the bridge tunnel. Thnings that certainly make you go hmmmmm.

Anonymous said...

tax guy......how does one tell the difference between branded and unbranded? what do we look for ? plz explain...

Anonymous said...

Gas stations in Laurel, DE are 2.99/gal

Anonymous said...

Everyone ignores, or doesn't understand, that Maryland retailers are caught between a rock and a hard place. Restrictions are placed on Maryland re-sellers which prevent them from selling gas for less than they paid for it on their latest invoice. Gov. Glendening (sp?) placed this law into effect as one of the last things before he left office. He did this to protect us from places like Sam's club, who historically have come into a market like Salisbury, sell fuel for as much as 25 - 50 cents UNDER cost until the mom and pop stations around it have to close the doors. Once the competition has been eliminated Sam's club is then free to charge whatever they want. It seems like a good thing to us for that short period of time but in the long run competition is the only thing that will keep these places in check. Price fixing is when all these competitors get together and make a pact to keep prices at a certain level. The amount of competion we have here makes that impossible. Wholesale gasoline has been dropping drastically over the past few weeks. What can be bought today is much cheaper than what was bought last Thursday. Our retailers CAN NOT by law drop their price until they have received a delivery at the lower price. The tax difference between MD and DE is minimal. They types of gasoline (environmentally) are different. The pricing differences sway back and forth. There are times that there is a .25 savings by buying in Delmar MD as opposed to Delmar DE and the opposite is true as well at times. Generally there is a few cent premium when purchasing branded gasoline, but there are also times when branded fuels are less expensive than unbranded. The difference is that when you fly an Exxon, Shell, or Citgo flag you must use their gas. When you are a "no name" station you take what you can get at the lowest price but you are not getting the additives that come with the branded fuels. Another factor that is overlooked is the use of credit cards. Banks charge between 2.25% and 3% of the total transaction each time you swipe your Visa at the pump. The store has to figure that in when pricing their fuel since over 85% of fuel transactions are by credit card. When gas is at $4 a gallon...the first .12 cents goes straight to credit card fees. A place like Sam's club has deep enough pockets to absorb this where MoM & Pop stores can't. Sam's also has the buying power to negotiate better card fee's than Mom & PoP can. Ever wonder why they ONLY took Discover until recently but now take Master Card? Still no VISA and I would be willing to bet that is because Visa is not allowing Sam's to tell them what they can charge. Read the papers and pay attention to the Gulf Coast pricing and the New York Harbor postings. Maryland terminals are priced off the of Gulf (where all the recent problems have been with the hurricanes) and Delaware is priced off of the NY Harbor. There are times that these two pricing points reflect a very noticible difference but all we can do is ride it out because those markets eventually correct themselves in short time. We will continue to see crazy differences through out the Eastern Shore until pricing stops dropping so drastically. I for one would rather put up with it for a while and see prices continue to drop. I also will support the local business owners if it means keeping the money here. In normal circumstances it costs me .15 more cents to shop at a local station than to save that .01 per gallon at Sam's.