Why is Conoco gas typically 10+ cents/gal higher than other brands? (Denver: how much, buying)

[BarryK123]

Not compared to just the off-brands, either.

[wanneroo]

Dunno, I don't remember that specifically being the case.

As far as I know, just about all gas sold in Colorado is processed at the Conoco refinery in Commerce City, so basically the whole state uses the same gasoline, despite whatever brand it is sold under.

[jazzlover]

Originally Posted by wanneroo

Dunno, I don't remember that specifically being the case.

As far as I know, just about all gas sold in Colorado is processed at the Conoco refinery in Commerce City, so basically the whole state uses the same gasoline, despite whatever brand it is sold under.

Not true. Some comes from the Suncor refinery in Commerce City; some from the Frontier Refinery in Cheyenne, Wyoming; some from the Sinclair refineries in Sinclair, Wyoming and Duchesne, Utah; some from the Giant Refinery near Gallup, New Mexico; and some from the refineries in Salt Lake City, Utah. I've probably missed a couple. Don't be misled by the truck delivering the fuel, either. I've seen Sinclair trucks delivering Conoco fuel, for example. The basic fuel from any of the refineries is essentially the same--the difference is what additives any particular brand uses. Most are added per the customer's specifications right at the refinery when the truck or railroad tank car is loaded. So, for example, fuel coming out of the Sinclair refinery, but being sold to a Chevron customer would have Chevron's additives added when the truck is loaded.

[phetaroi]

Perhaps a better question is -- since Conoco gas is almost always more expensive, why are sufficient numbers of people buying it?

[iknowftbll]

Perhaps Conoco has created a bit of competitive advantage with some consumers. If their product is perceived to be better by some consumers, people will pay more for it. Also, some people look at that 10 cents a gallon and think "whoa!" But if you fill up your car and it takes 15 gallons, you've paid an additional $1.50. That's really not that much to someone who believes he/she is buying a better product.

[BarryK123]

Originally Posted by phetaroi

Perhaps a better question is -- since Conoco gas is almost always more expensive, why are sufficient numbers of people buying it?

Especially when there are one or more other stations within a block on the same side of the street.

[Neditate]

I don't know where you are, but I paid attention to the Conoco prices while driving through Boulder, Superior and Westminster today. Their prices in those locations were no higher than other gas stations.

[BarryK123]

I'm in Lakewood. Travel south on Wadsworth towards Littleton and all the Conocos are significantly higher than every other station.

For example, as I passed 3 stations on Wads between 6th and Alameda this afternoon - S-Mart 2.99, Sinclair, 2.98, Conoco, 3.19.

[Willy702]

Every location is different, but many are owned by the same franchisor. Gas stations are a brilliant study in economic theory about how much in margin do you give up on one product to sell more of other products. While you could get a 15 page answer to this question the summarized answer is simply this is what their business model and marketing allow.

[dynimagelv]

back many years ago [when some cars still had cranks] I worked for my uncle in a bulk oil company in Limon.

we would get 10,000 gal tank cars in....from the Conoco refinery in Denver. I would climb up on the tank car and pour in ONE Gallon of RD-119 [in a 10,000 gal tank car]

THAT made the gas SINCLAIR instead of Conoco.