Why is the fuel at private gas stations sold cheaper?

[LeJosephine]

The reasons why private gas stations sell fuel cheaper: 1. Lower costs: Private gas stations are generally located in remote areas, with smaller land areas and fewer staff, resulting in lower operating costs. 2. Fewer customers: To attract customers, they increase discounts. 3. Different fuel sources: Regular gas stations have better quality fuel, naturally at higher prices; whereas private gas stations, to ensure profits, naturally look for ways to source fuel, such as from regional refineries, which naturally makes the fuel cheaper. However, long-term use of low-quality fuel can lead to rapid carbon buildup in the car, with increased fuel consumption and sluggish acceleration being the most common symptoms. 4. Small profits but quick turnover: Like selling other products, they adopt a strategy of small profits but quick turnover to maximize profits, a common method in economics; with lower prices, many car owners choose private gas stations to save a significant amount of money on a tank of fuel.

[ConnorRose]

I found that private gas stations offer cheaper fuel, likely because their operating costs are significantly lower. Those big-brand gas stations have to pay high land rents and employee wages, along with various brand management fees. However, private stations are usually located in suburbs or small towns, where rents are cheaper, they employ fewer staff, and management is simpler—these savings are directly reflected in the fuel prices. Additionally, private gas stations source their fuel directly from refineries, cutting out middlemen and their markups, which helps keep costs down like wholesale prices. To attract more customers, owners often use low-price strategies, such as promotions, encouraging you to buy convenience store items while fueling up—this is how they make back their profits. Of course, the fuel quality might be slightly simpler, but as long as you choose reputable ones, it won’t affect daily driving. Saving this bit of money over time is definitely worth paying attention to.

[AngelinaDella]

When it comes to private gas stations offering cheaper fuel, I've done some research, and it mainly comes down to shorter supply chains. State-owned gas stations have complex distribution networks, which add extra costs. Private stations deal directly with local refineries or import wholesalers, cutting out middlemen. The fuel is sold as soon as it arrives at the station, saving on transportation and storage expenses. Location also matters—remote areas have lower land rents and reduced labor costs. To compete in the market, owners deliberately set lower fuel prices to attract customers. For example, while fuel may be cheaper, you might end up spending more on car washes or repair services, ensuring overall stable profits. Even with lower prices, I've tried different stations and haven't noticed significant changes in fuel consumption. In the long run, the money saved can be allocated to increased car maintenance budgets.

[DiCarter]

I always choose private gas stations for refueling because they are indeed cheaper. After consulting insiders, I learned that it's due to effective cost control—no hefty brand fees or advertising expenses. Smaller locations mean lower rent, and fewer employees result in lower wages. The owners pass these savings on to consumers. To retain customers, they use low prices as bait, encouraging you to buy other items while you're there. Being located in the suburbs further reduces expenses, and sourcing fuel directly from refineries cuts out middlemen costs. With these savings on fuel, I can drive an extra few dozen kilometers each month.