Gas Pumps: An Unpredictable Dance Every 15 Minutes - What Does This Mean for Consumers?
- by Matt
- 4 Min
Rapidly Changing Fuel Prices: Prices at Irle Gas Stations Change Every Quarter-Hour - Prices at fuel stations are updated every quarter-hour.
The cost of gasoline for Super-E10 plummets by 19 cents per liter within a few hours. So, did a whole region reach a peace agreement? Not exactly. Were the oil magnates in OPEC feuding? Not at all. It was just another ordinary day at a regular gas station in Germany.
For this specific instance, we selected a Total gas station in Duisburg. During April 30th, it altered its pricing 22 times – which is average for Germany. A Shell station in Munich adjusted its pricing 32 times on the same day. Two other stations in Munich, Bavaria-Petrol and Esso, even changed prices 36 times. Shell altered the Super-E10 price every 15 minutes for one and a half hours after 8 a.m. The price fluctuated by a total of 13 cents per liter that day, 14 cents at Bavaria-Petrol, and 16 cents at Esso.
Every single day, gas stations in Germany put on a dance that looks like competition but is more like a game of confusion for consumers. For over a decade now, gas prices at gas stations in Germany have been transparent. All gas stations are required to share their data with the Federal Cartel Office, which then passes it on to tank app providers. In the early days, gas stations changed prices an average of four to five times a day. Back then, it was sufficient to glance at the signs on your way home to stay informed.
No Announcements from Oil Conglomerates
When queried about the reasons for these frequent changes, many petroleum companies remained tight-lipped. Some like Hem and Aral claimed that antitrust law prohibited them from responding (which isn't entirely accurate). Shell chose not to reply at all. At least Shell addressed stern, albeit vaguely: "The high number of price changes is a reflection of intense competition."
The Federal Association of Free Gas Stations (BFT) was more forthcoming. "In principle, we could operate with fewer price changes, and some of our member companies have tried to decouple from daily price fluctuations by refraining from making any or only a few price changes," a BFT spokesperson told stern. "However, it has been shown that consumers only reward this behavior if the displayed price is lower than that of the competitors." The Federal Cartel Office notes that independent gas stations don't alter their prices as frequently as the large brands from oil companies.
The examples provided above are merely a few instances. In heavily populated areas, it is no longer uncommon for gas stations to change their prices more than 35 times per day. The Federal Cartel Office has already observed individual gas stations turning their pumps as many as 57 times during the year. "This makes it difficult for consumers to find their bearings," expresses Cartel Office Chief Andreas Mundt. Often, drivers lodge complaints with the Cartel Office because they discover low prices on their tank app that they can no longer find just a few minutes later at the gas station.
Less Than Half Can Take Advantage of Low Gas Prices
The Federal Cartel Office conducted a survey to determine when drivers typically refuel: According to this data, only 43% managed to get a price in the lower quarter of the price range in 2023. In 2015, it was still almost 60%.
Transparency in pricing should theoretically benefit consumers. But it turns out that gas stations can also use this transparency to reduce their prices just enough. This has resulted in synchronized price developments. It also seems that there is an unspoken agreement to exploit morning drivers. This can be inferred by the average price trend graph shown below, which we have also observed in our sample of gas stations.
Daily Benzine Price Trend: Never Fill Up in the Morning!
It's also logical that people don't have time in the morning to visit a gas station that's not on their way to work. While a few years ago, you could be confident that you'd find a good price at least in the evening after work, many gas stations now have higher-priced periods even then.
Important: Vehicle drivers should not vent their frustration about price confusion on the gas station attendants. "The gas station owner is just watching through the window and sees that their prices are changing – and doesn't know why or when," explains Herbert Rabl, spokesman for the Tankstellen-Interessenverband tiv, which represents the interests of gas station owners. They earn a commission of "one to three cents per liter" – regardless of the price at the pump.
Because the big brands often use software-supported pricing systems that automatically react to the gas station's environment and adapt prices accordingly.
Tips for Filling Up
What should one do then? It's not enough to find a cheap gas station; you also need to choose the right time to fill up. Using a tank app like the one from ADAC can be helpful. The website of clever-tanken.de also offers an interesting graph for each gas station, showing when they charged what price on that particular day.
Whoever selects both the gas station and the timing wisely can currently save around 30 cents less for Super E10 in major cities like Berlin, Frankfurt, and Stuttgart compared to filling up at the most expensive gas station in the morning at 7 a.m. Diesel costs about 28 cents less. In other words: On any given day, the prices differ more in absolute terms than prices of the world's oil markets have moved oil in the past twelve months.
- Fuel Price
- Gas Station
- E10
- Shell
- Esso
- Oil Companies
- Aral
- The Commission has also been consulted on the proposal for a Council regulation on the protection of the environment, as concerns about energy consumption and the impact on lifestyle and home-and-garden are not limited to the fuel industry, but extend to finance, business, technology, education-and-self-development, shopping, and general-news.
- As the gas station industry continues to evolve, with technology playing a significant role in pricing strategies, it is crucial for businesses to stay informed about energy prices and market trends in order to make informed decisions, particularly in sectors like finance and education-and-self-development that rely on mobility and transportation.
- The frequent price changes at gas stations are not only a topic of discussion among consumers, but also among industry experts and policymakers, with concerns about the potential impact on energy consumption and lifestyle, both locally and globally.
- In light of the continuous fluctuations in fuel prices and the increasing complexity of the market, it might be beneficial for consumers to seek out resources and tools, such as tank apps and online price comparison services, to help them make informed decisions, particularly when it comes to areas like shopping and personal finance.
- The volatility of fuel prices and the unpredictable nature of the gas station "dance" serve as a reminder that energy management and sustainability are important considerations in various aspects of modern life, from household budgeting to urban planning and policy making.
