Price Gouging at OIA Gas Stations

[jcb]

The podcast crew has frequently talked (recently I think, but I've been listening to a lot of old podcasts as well and I confuse easily) about high prices (my words) by the gas stations near the airport. The Orlando Sentinel has an article about a city ordinance requiring these gas stations to post their prices and the lawsuit the stations have filed against the city. The $250 a day fine just doesn't seem stiff enough.

 

[FireDancer]

I was under the impression that price gouging was taking advantage of a situation to make an unfair profit. Raising the price on gas the day after a natural disaster for example. I didn't think having consistently higher prices because you had a favorable location was price gouging. A sandwich shop in Times Square for example could sell the same sandwich as a shop 5 blocks away but they charge double because they are at Time Square and can.

I'm not defending the gas stations but I'm curious to know where the line is between price gouging and taking advantage of your location by charging a premium. I understand the problem with not posting prices and agree that they should be but I wonder if it is really price gouging.

 

[jcb]

Frank,

You are certainly correct that the legal prohibition on price gouging applies to the situation you describe. "Charging exorbitant or excessive prices for these and other necessities following a disaster is not only unethical, it's illegal." Florida Division of Consumer Services Fla. Stat. § 501.160 makes this illegal.

Price gouging also means charging prices that are unreasonable for the situation. There isn't anything illegal about this practice. http://en.wikipedia.org/wiki/Price_gouging.

I'm all for letting businesses set prices that the market will support. Disney does this all the time. But if these stations were really charging something close to market supported prices, they wouldn't be fighting the price posting ordinance.

 

[FireDancer]

I agree completely. Inform the consumer and they can decide if they want to pay your price. I hear a lot about price gouging in situations like the gas stations and other captive audience situations and I figured I'd take this opportunity to as an attorney while I could.

Thanks for the clarification.

 

[safetymom]

These two gas stations have been doing this for years. Every so often the news stations have to report on them. Since the ordinace passed national tv stations have taken an interest in this also.

They are across the street from the old Hertz return location. I made the mistake of filling up there once.

I agree the fine should be more!!

 

[BriarRosie]

I've never filled up a rental at those places, thank goodness. I haven't rented a car for a few years, but when I did, I'd fill up at the Hess station first and top it off slightly, and that carried me to the MCO return with a full tank still, no problem.

 

[Mike2023]

I agree that it sucks. But if the gas stations are there then it means people are buying the gas. If people are willing to pay over inflated prices for something then really its there own fault. No one is forcing anything on anyone.

If people where to stop paying that price then they would be forced to bring the price in line with the rest of the area no?

 

[darrengs]

I agree that it sucks. But if the gas stations are there then it means people are buying the gas. If people are willing to pay over inflated prices for something then really its there own fault. No one is forcing anything on anyone.

If people where to stop paying that price then they would be forced to bring the price in line with the rest of the area no?

This argument may not be logical in this case. People pull into a gas station before returning their rental car and see the high prices. At that point what choice do they have as they most certainly have to return the car and catch their flight.

In reality the rental companies should just hand out a flyer and verbally inform their customers not to use those stations and simply inform them of the unscrupulous business practices.

 

[*NikkiBell*]

I agree that it sucks. But if the gas stations are there then it means people are buying the gas. If people are willing to pay over inflated prices for something then really its there own fault. No one is forcing anything on anyone.

If people where to stop paying that price then they would be forced to bring the price in line with the rest of the area no?

I disagree. People are unfamiliar with the roads they are driving don't always have a choice as to where they buy gas. Unless you have a GPS with you on vacation, it can be difficult to search for alternate stations. Even with an app like Gas Buddy, it is still uncomfortable driving in unfamiliar places.

 

[Mike2023]

I disagree. People are unfamiliar with the roads they are driving don't always have a choice as to where they buy gas. Unless you have a GPS with you on vacation, it can be difficult to search for alternate stations. Even with an app like Gas Buddy, it is still uncomfortable driving in unfamiliar places.

Your saying because its an unfamiliar place they have no choice but to get gas there? I guess I don't your logic. A difficult choice is still a choice. If a traveler decides that the extra price in gas is a better option then finding another station then so be it, but I don't think you can fault the gas station in this case.

You could always return the car with an empty tank and have the rental company fill it up for you.

 

[Mike2023]

This argument may not be logical in this case. People pull into a gas station before returning their rental car and see the high prices. At that point what choice do they have as they most certainly have to return the car and catch their flight.

In reality the rental companies should just hand out a flyer and verbally inform their customers not to use those stations and simply inform them of the unscrupulous business practices.

I think bottom line here is about the demand for gas in the area. There is no arguing that the demand for gas is higher around the airport. When demand is high, price goes up. Its basic business no?

While I agree that not posting a visible price until you reach the pump is "sneaky", and bad customer service. But lets face it, these gas stations are not there to build loyal customers. I would not run a business that way, but its obviously profitable.

I could list at least 100 other situations that could be considered the same thing, no less then 20 of them done by Disney.

 

[BriarRosie]

I think bottom line here is about the demand for gas in the area. There is no arguing that the demand for gas is higher around the airport. When demand is high, price goes up. Its basic business no?

While I agree that not posting a visible price until you reach the pump is "sneaky", and bad customer service. But lets face it, these gas stations are not there to build loyal customers. I would not run a business that way, but its obviously profitable.

I could list at least 100 other situations that could be considered the same thing, no less then 20 of them done by Disney.

The big difference is, the Hess station at Disney, where there is a guaranteed business of tourists, operates with integrity. These independent gas stations are run by greedy scumbags. That's my opinion, of course, but I think many people will agree with me.

It's one thing to charge more than the guy down the street, but I never see the difference between gas vendors to be more than a couple cents difference. Gas today is around $4.63 a gallon here in the Chicago area, highest in the country EXCEPT these airport gas stations. By over a dollar more.

These guys know they are ripping off the public, or they wouldn't fight the sign ordinance.

 

[Cheshire Figment]

When Exxon had the stations at WDW they were about $0.75 higher than the stations in Kissimmee, but several of the stations on SR535 right off Hotel Plaza Blvd had prices that matched those of Exxon.

When Hess took over, the prices on property dropped considerably. About the only exception, which stayed up, was the Chevron station on SR535 just at the entrance to I-4, which remained high. I could drive South on SR535 less than two miles, to the Chevron station just off Poinciana Blvd and Osceola Parkway and that station, the same brand, was always $0.50 - $0.75 per gallon less. The station at SR535 and I-4 has now been closed for a few years.

I have seen the stations near the airport, as they are close to where I use long-term parking. They do not have any signs out which indicate their prices. The only way you can tell is if you actually look at the price on gthe pump; but by then you are out of the car and ready to start fueling.

And, BTW, they say that putting up price signs visible from the street would be in financial burden on them, and the cost of the sign would be too high.

 

[Mike2023]

The big difference is, the Hess station at Disney, where there is a guaranteed business of tourists, operates with integrity. These independent gas stations are run by greedy scumbags. That's my opinion, of course, but I think many people will agree with me.

It's one thing to charge more than the guy down the street, but I never see the difference between gas vendors to be more than a couple cents difference. Gas today is around $4.63 a gallon here in the Chicago area, highest in the country EXCEPT these airport gas stations. By over a dollar more.

These guys know they are ripping off the public, or they wouldn't fight the sign ordinance.

I agree that is a bad way to run a business, but there is nothing that says "greedy scumbags" are not aloud to own a gas station and run it the way they want. Any business can run up the price of a product until they alienate there customers. Apparently they have yet to reach that mark is all I am saying.

The reason you don't see a difference in gas vendors is because if you could cross the street to get gas for a buck less then no one would go to the other station.

To tell you the truth, I don't believe that the sign would make all that much difference for the reasons already stated in this thread.

 

[dmccarty]

For as long as I can remember, you NEVER, bought gas on WDW property because it was sooooo much more expensive. Then Hess took over and I was shocked to see the price was in line with offsite gas stations. We now fill up at WDW. Who would have thunk it!

On our last trip to WDW we drove down and would not get to AKV until 10:00pm. We got a bit lucky when we stopped for food at BK. I could drive from the BK parking lot to a gas station lot just feet away. We were going to eat in the car to save time so I dropped the family off at BK while I went to the gas station. Then I noticed the price. The price was much higher than it should have been, maybe 25 cents a gallon. Normally there is no way I would pay that price but to take the time to tell the wife I was going to a different station, fill up and return was not worth the extra $4-5 I paid for the tank of fuel.

Many years ago I was driving in the NC mountains on the Blue Ridge parkway. I used up more gas than I thought so I had to pull off the parkway to find fuel. The parkway, even today can be and usually is fairly remote from services. I went to the little town that was closest to the parkway but it still was 10-20 miles away. I got into this little valley that had an even smaller town with a few houses, a fish farm, and a gas station.

The gas station had a large sign up on the front of the store. The words were to the effect that the gas was priced as high as the law would allow. It was something like 50% higher than what you would pay anywhere else. Given the choice of running out of gas or paying the price I paid up. It sure beat the alternative.

I have always wondered if the locals had to pay the price as well.

Orlando should make the gas stations put up signs to post the prices though I bet it would not make much of a difference. In the end you do have a choice. Sometimes it might not be a good choice. Pay the price or miss a flight. Do not pay, run out of gas, and call for a tow in the middle of now where after finding a house with a phone.

Last time we rented a car the rental company would charge us a fortune to fill up the car that was not returned with a full tank. THAT was a rip off.

Sometimes gas is just plain cheap even when it is outrageously priced.

Later,
Dan

 

[*NikkiBell*]

Your saying because its an unfamiliar place they have no choice but to get gas there? I guess I don't your logic. A difficult choice is still a choice. If a traveler decides that the extra price in gas is a better option then finding another station then so be it, but I don't think you can fault the gas station in this case.

You could always return the car with an empty tank and have the rental company fill it up for you.

Yes, I am 100% saying that is the case for some people. I know many who are not comfortable driving around an unfamiliar town or city just to search for a bargain. Again, unless you have access to a GPS, it's scary to do just that for many people.

If you return the car with an empty tank, sometimes they charge you not only ridiculous prices (which are undoubtedly lower than a gas station who charges high prices anyway), but an extra fee. In my opinion, it's better to pay the higher gas prices than this option.

With all of this being said, I still do not think it is fair. And, yes, I do fault the gas stations for doing this. It's unethical and taking advantage of people. That's the bottom line. I hope these stations and their owners get every bit of bad press possible.

 

[DisneyKevin]

Hi Folks,

Our goal in discussing this was not to debate the legalities or morality of such practices, but to warn people that this is what's happening and to offer alternatives.

It's been said that knowledge is power and we hope that sharing the information with our listeners gives them the knowledge and power to make an informed (and less expensive) decision.

 

[jcb]

There are any number of legitimate reasons why a store near an airport might need to charge higher than average gas prices. The property values could be a premium, tighter regulation of some kind, or to account for lower sales of store items (which are where most convenience stores make a profit) by travelers rushing to get to the airport. None of this explains why they refuse to post their prices.

I hope I did not imply John said anything about the legality or morality of the prices.

 

[Mike2023]

Yes, I am 100% saying that is the case for some people. I know many who are not comfortable driving around an unfamiliar town or city just to search for a bargain. Again, unless you have access to a GPS, it's scary to do just that for many people.

If you return the car with an empty tank, sometimes they charge you not only ridiculous prices (which are undoubtedly lower than a gas station who charges high prices anyway), but an extra fee. In my opinion, it's better to pay the higher gas prices than this option.

With all of this being said, I still do not think it is fair. And, yes, I do fault the gas stations for doing this. It's unethical and taking advantage of people. That's the bottom line. I hope these stations and their owners get every bit of bad press possible.

I get what your saying Nikki, but they "chose" not to go gas hunting because they are not comfortable doing so. Its still a choice.

Anyways, I think your defiantly right about the gas stations taking advantage of people. Its unfortunate that we live in a world where business take advantage of there customers, but this would not be the first case of this happening.

Kevin is right, the info they gave on the podcast is great. Just maybe a few listeners will remember to pick up gas before they drop there cars off at the airport. Because I doubt it will change anytime soon.

 

[DisneyKevin]

I hope I did not imply John said anything about the legality or morality of the prices.

No worries, Jack.