Gas Stations Profit As Pump Prices Drop

In a time of mostly glum economic news, gas prices are giving people at least some reason to smile. They're not the only ones happy about lower gas prices. "Retailers love low gas prices as much as their customers do," said Jeff Lenard, spokesman for the National Association of Convenience Stores.

Now, stations can charge low prices that still include more markups.

Lenard said gas stations were losing about 3 cents a gallon on average in this year's second quarter. Now they're making about 20 cents a gallon, although that differs depending on individual market conditions.

Falling prices have also brought about an interesting behavioral trend from consumers, Lenard said. It's similar to how many people react to rising and falling stock market prices.

In the spring, when gas cost $4 a gallon, Lenard said, gas station owners noticed that drivers would usually fill up their tanks out of fear that prices would keep rising. Now that prices are falling, people are less likely to fill up, as they think prices might get even lower. [via Free Lance-Star]