Recently I pulled into a local gas station because their sign
visible from the street said they had gas for $4.05
– eight cents per gallon cheaper than their closest
competitor.
“Recently I pulled into a local gas station because their sign visible from the street said they had gas for $4.05 – eight cents per gallon cheaper than their closest competitor. I pulled up to the pump, jumped out of the car, went inside and paid my money. When I got to the pump, it said the gas was $4.11! I rounded the car to check the sign I had seen from the street, only to find the attendant in the process of changing the sign to reflect the higher price. Needless to say I was not happy! I guess I want to know if there are no regulations of any kind that would keep this from happening. And also, are the gas stations charged more for a shipment after they have already ordered it and received it and have been selling it? Or are they just incredibly greedy? Are there really no protections for the consumer? I understand that a new shipment of gas is likely at a higher cost than the previous one and would expect to be charged more, but to have the price change while I am in the process of purchasing it? And what about the sign saying one price but being charged another? Thanks for any light you can shed.”
Red Phone: Dear Out Of Gas, There are indeed rules in place that regulate what gas prices can be charged. The station should have changed the signs before charging the higher price as required under California Business & Professions Code (Section 12024.2), said Stan Toy, the deputy sealer for Santa Clara County.
The Santa Clara County Weights and Measures handles enforcement. You can file a complaint by calling 918-4601 or (866) SCANNER or emailing sc**************@***********ca.us or online at weights.sccgov.org.
Because gas stations are branded, stations are limited by the proprietary gas they can buy. They usually make 10 to 15 cents per gallon, according to smartmoney.org (www.smartmoney.com/ spend/family-money/What-Gas-Stations-Wont-Tell-You). They also usually make less when gas prices are higher because they are forced to shrink their profit margins to be competitive.
To find out more about how gasoline prices are figured out check out thepriceoffuel.com or fueleconomy.gov. And if you want to compare stations, check out gasbuddy.com, which even has an app to let you find the cheapest gas in town.
Follow-up on right of way
Red Phone: Last week, Red Phone received a call from a reader who was concerned people were stopping unnecessarily when turning right onto Leavesley Road when traveling north on Monterey Road. There is indeed no reason to to stop here since there is not a limit line at that intersection for that lane, said Gilroy Police Officer Amanda Stanford.
