Business and economic information you need to know
Oct 9, 2008 8:02 am US/Eastern
Drivers Find Cheap Gas In Davie
$2.99 A Gallon For Reg. Unleaded
DAVIE (CBS4) ―
A line of cars surrounded an entire block in Davie Wednesday afternoon, while many of the drivers inside were trying to understand gas prices and all the factors that go into them.
It might seem to them like trying to understand quantum physics.
But what they do understand is that gas at this Pine Island Road and Orange Drive Chevron gas station is at the promotional price of $2.99—the reason they waited in line. The regular price at the station is still cheaper than we've seen in a while: $3.19 a gallon.
Many still don't understand how they can sell so cheap.
"Right now cost for us is $2.80," said owner David Zinn. "We sell it for $3.19. We make 40 cents a gallon. 40 cents a gallon is pretty good."
Zinn says his price for a gallon of regular gas has been falling for days. He's trying to pass his savings on to customers. With the economy in the dumps, these drivers are happy to save.
"I'm on a very tight budget," said one lady. "My husband is the only one working right now; we've had medical problems. Gas, food, everything's high."
A Shell station on Pines Boulevard west of I-75 selling regular for $3.21.
It's packed, and station owner Danny Sims says he's also turning a profit.
"We don't need to make a killing on it," said Sims. "We want to be fair and gain business at the same time."
So then why are others selling for so much higher?
It was hard to find an answer, but the prices at many stations remain in the $3.50 range. Experts say these stations might have bought their gas when prices were higher, or they could pay higher overhead costs and need to charge more.
The bottom line for these drivers though is that they found a bargain and need to save.
"It's pretty sad that all of the other gas stations can't put gas where it's supposed to be...and make everybody go to one station to get a fair price," said customer Annette Jayne.
Prices gas station owners pay fluctuate daily. The average wholesale price of a gallon of regular gas with taxes and fees was around $3 Tuesday. Some stations may have to pay more, and it's hard to get a straight answer about why some stations charge more.
Overall owners told us consumers can expect a gradual drop in prices all around, because of plunging oil prices.
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