Forum Discussion
ksg5000
Jan 04, 2018Explorer
Ralph Cramden wrote:ksg5000 wrote:
Oregon is a big strange but some would argue that your ultimate gas price is determined by the distributors and tax authorities and not by the minimum wage earned by gas attendants --- goes against the basic econ rules we learned 40+ years ago but "free market" ain't so free when there are limited number of distributors.
Oregon laws remain in effect because everytime someone tries to overturn the the law people point out that the gas in nearby states is usually higher than Oregon.
Basic economic rules would dictate that the wages and other associated costs for maintaining employees get passed down to the consumer. I find it hard to beleive there are many gas station operators in Oregon or anywhere else that provide that service out of the goodness of their own heart, and on their own dime. There is not much of a profit margin on fuel at the retail level to begin with, which is why the vast majority of gas stations are now convenience stores.
Yep - but basic economic rules require free market and that doesn't exist in the distribution chain in Oregon and many other states. Oregon gas prices tend to be lower than neighboring self serve states despite having higher tax rates - go figure.
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