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Gas prices dip in Fuquay-Varina

Posted March 29, 2011

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— Gas prices in Fuquay-Varina have been 15 to 20 cents cheaper than in nearby towns this month. Prices there have been hovering around $3.29 per gallon. 

Murphy USA fired the first shot when it opened a new station. State law allows a gas station to sell fuel below cost for two weeks after its grand opening.

"We were on our way back from Raleigh, and we knew that gas prices were cheaper here, about 20 cents cheaper than they are back our way," driver Susan Talbot, of Angier, said Tuesday as she filled up her tank at Murphy USA. "It definitely is worth going a few miles out of your way." 

Mark Monsky, an economics professor at Wake Technical Community College in Raleigh, said it is free market at work.

“They just want to get customers to come in, try out the gas station, change their pattern, see that there's a different level of service available. It's just an introductory offer,” Monsky said.

Nearby stations lowered their prices to compete.

"Consumers should look at this as a one-time grab offer. Go out there and get it while it lasts, but it's not going to be there for long," Monsky said.

Consumers are already seeing gas prices head back up.

gas prices Gas prices drop in Fuquay-Varina

Monsky said instead of spending money on advertising, some stations offer deeply discounted prices on gasoline.

An independent gas station owner told WRAL News that one of his big competitors budgets hundreds of thousands of dollars when it opens a new gas station just to undercut the competition.

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  • ConcernedNCC Mar 30, 2011

    BTW: If you REALLY want to lower prices, do NOT buy gas from Exxon-Mobile unless they are at least 5 cents below the other stations. They are the largest and will lower the prices to get customers, pulling the others along as they compete, and so on, until fuel prices reach a minimum, or we drive the biggest out of business for taking advantage so much in the past and present. This is how I buy gas and the more people who do the same, will put pressure on them to lower the prices.

  • ConcernedNCC Mar 30, 2011

    State law allows a gas station to sell fuel below cost for two weeks after its grand opening.
    Nearby stations lowered their prices to compete.

    ...Then how could the others lower their prices below cost, since they have been open for much longer than two weeks.

  • 6079 SMITH W Mar 29, 2011

    Heavy Mystery: Why does it take "hundreds of thousands of dollars" to undercut the competition for a couple of weeks when a new store opens up? Remember the sad story we got last week? The gas station owner dude said he sold 40,000 gallons of gas that month, and he only made $140.00. Somebody be lyin'. ;)

  • larieke Mar 29, 2011

    "State law allows a gas station to sell fuel below cost for two weeks after its grand opening."

    Just another case where big government is sucking the people dry.

  • ugottabkiddinme Mar 29, 2011

    If you own a store you should be able to sell gas at whatever price you want too...so much for a free country. if the government wants to regulate something how about starting with the speculators on wall street driving the price sky high for NO reason

  • grayboomerang Mar 29, 2011

    bigal02282...I hope you grow your own food too.

    I always love folks who exclaim with glee that they aren't affected by oil prices....I guess you don't buy groceries and supplies that come on those big gas guzzling trucks?????

  • chfdcpt Mar 29, 2011

    We import more oil from Canada than the middle east. The average cost of gas in Canada is 1.21 candian dollar per liter. At 3.78 liters per us gallon, that amounts to 4.57 us per gallon of gas.

  • alshomes Mar 29, 2011

    They should be allowed to sell gas at any price without government intervention. That would be free enterprise at work.

  • DontLikeTheSocialistObama Mar 29, 2011

    North Carolina has the law prohibits gas wars at the request of the Pantry a few years ago.

    After the public outrage over the law, the Pantry changed the names of it's stores to Kangaroo thinking the public was too dumb to remember.

    They need to repeal this law and let the fair market regulate gas prices.

  • slaughterjim Mar 29, 2011

    I think I would have to challenge our grand old state on that....I would give it away a hr or so after the dead line....give them an opportunity of their incompetence. (sp)

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