Or maybe they are a front for money laundering, running a numbers game or selling drugs?
The price would seem to be a big red flag for the authorities to investigate, though.
The price would seem to be a big red flag for the authorities to investigate, though.
Gas stations can charge what they want…It’s too LOW a price I’d be more concerned about.
I was sorta thinking “front,” too. If you need a plausible source of income–but don’t want to take time and effort away from your “core crook competencies”–set up a business that does a lot of cash transactions, and encourage customers to stay away.
“Set up a business that does a lot of cash transactions, and encourage customers to stay away.”
We have a local pawn shop that marks their merchandise up to a ridiculous rate and is always crowded with people. In 5 years…I have never see a customer take anything in or bring anything out. They are on the local law enforcement’s radar but so far…no arrests or investigations that I’m aware of.
“At least your station isn’t as bad as the somewhat famous Vineland Shell in Orlando, which I assume is hoping to catch unsuspecting foreigners.”
You know now that you mention it, last winter I pulled into a Shell station near Disneyworld that the sign said something like $5 or $6 gas. It was a convenient place by the mall and I thought the sign was a mistake. When I saw the actual pump price was the same, I just left. The place was deserted. Just down the street was normal priced gas. We just kind of scratched our heads.
You know now that you mention it, last winter I pulled into a Shell station near Disneyworld that the sign said something like $5 or $6 gas. It was a convenient place by the mall and I thought the sign was a mistake
I stopped at the same place a few years back. There were several gas stations less then a mile away. They’re pay at pump with credit card was also about $2 higher/gal then paying cash.
I Stopped There, Too. I Used Their Picnic Table For Lunch. Didn’t Buy Much Gas.
I had somebody tell me that they charge a high price because folks with rental cars, in a hurry to catch a flight, stop on their way to return rental cars and need to fill them to avoid a large fee. Can’t verify it.
CSA
I had somebody tell me that they charge a high price because folks with rental cars, in a hurry to catch a flight, stop on their way to return rental cars and need to fill them to avoid a large fee. Can't verify it.
That’s why I stopped…but I wasn’t in that much of a hurry.
I have to agree with @Mustangman there’s a station around here that sells gas for about 80 cents a gallon higher than any other station around it. It’s open secret that they sell knock off goods (clothing, bags, etc.) for cash from behind the counter. It’s speculated for years that knock off goods are just a front for a money laundering operation. The theory is that their gas prices are high because they want as few people around as practical. Most of the cars I’ve seen there aren’t getting gas.
Pollution controls. I saw a article awhile back where stations who sold above a certain amount of fuel had to update their environmental controls. Some stations choose to raise the price to lower the sales volume and avoid the upgrades which could be over 100k.
And maybe they don’t want to shut down and have to remove the tanks.
There are two stations at interstate interchanges one mile apart near my home. They are the same brand, refined about 120 miles away. The price at exit 13 is always a dime higher than the price at exit 14.
Service stations have diverged over the years. The very large ones only sell gas and supplies, as well as food.
The ones who are run by mechanics have larger service bays and the owners or operators make most of their income from repairs and maintenance. Those may not have an interest in pumping gas, since you need a gas jockey as well as a cashier.
The 2 good mechanics who operated a Shell station in our area, until it closed, gave very good service, but had a minimum wage guy selling gas.
However the station probably did not fit into Shell’s business strategy since the gas and oil sales were too low, and the station was located on a very valuable suburban commercial area.
There is now an office complex on that property.
Yeah but as @lion9car said, these stations were something like $2-3 a gallon higher than other stations. A dime I can see but a couple dollars is something else entirely that even I don’t understand.
I imagine the station that has their gas priced at $1.30/gal higher than anyone else may have found some loop hole so to speak. I don’t know what that might be…a tax break for losses in profit…a path to bankruptcy???
Maybe it’s a way to default on a business loan and be forgiven the balance.
BUT why open the doors at all. Why not claim you were open and stay home watching reruns of “Mash” !!!
We had a station like this too. The perfect location, across from a strip mall, the intersection of two major highways, near the hospital and offices, large lot, six pumps, with a car wash attached. You could park 15 vehicles in the lot and never come close to blocking a pump.
Their gas was always at least a $1.50 more per gallon and they got only customers that were passing through and never looked at the price on the signs. Rarely did you see a car stop for gas.
These owners were of Middle Eastern descent, and I was told that they let the place go downhill and then transfer title to a relative. I was told that they are given X number of years free from taxes, then another relative immigrates and takes over ownership with the same X number of years tax free. This is because they claim to be refugees…not just immigrants. Hence they are given a huge tax break because of the refugee status.
BUT, this makes no sense!!! If you are going to open the doors, why not sell something to pay for part of the expenses of opening the doors, like the light bill. They were always open???
I stopped a couple of times for a water or soda, and they were not friendly, and acted like I was taking them away from something much more important.
I racked my brain trying to figure this out, but could never pinpoint how it would be an advantage in any way legal or illegal. I say it’s some sort of scam, but why and how…I haven’t a clue.
Maybe when I called for tech support for the computer…I was talking to them!!!
The place has been closed for about 6 months. No for sale sign, just locked up tight.
Yosemite
Bingo! Money laundering:
http://illinoisattorneygeneral.gov/pressroom/2013_03/20130301.html
Quote:“Farhan schemed to conceal the underreported sales by laundering more than $200,000 to an overseas bank account based in Amman, Jordan.”
Anyone can check the commodities futures petroleum prices and see what gasoline and other petroleum products are selling for on the wholesale market. You must ad the federal, state and local taxes onto the quoted price. Then there is the “spot market” where loading terminals may post a different price depending on supply and demand conditions in that area…This web-site gives spot market prices in various locations…
http://www.eia.gov/todayinenergy/prices.cfm
In Denver, COSTCO is selling regular (Top Tier) unleaded for $2.05 I did see one station, a Bradly Sinclare at $1.95 …The average state and federal tax is $0.48 Colorado’s is 0.40 and California’s is 0.60
When I lived in the Detroit metro area, it seemed that every convenience store NOT attached to a gas station was owned by an Arab. I guessed that the reason was that convenience stores also sold food and perhaps that was a way to ensure the family survived. After all, even if the store didn’t make much money, they could always have something to eat.
I wonder if that is what is going on in the OP - the selling of gasoline wasn’t their high priority, so the price did not matter.
For many years and before Harley Davidson started their overpriced boutique style business methods, the HD dealer here ran a combination gas station and Harley dealer operation on one lot with one bay in the gas station reserved for used part storage.
This operation went down when the dealer was arrested for trafficking methamphetamine through the business.
You could be right @insightful …money laundering. Thought I have no idea how that works.
I only know of the “Money Laundering” type when I hear my wife yell out “I’m rich” when she does my clothes. Damn, there goes the whiskey money for the week!!!
Yosemite