BOSTON (WHDH) - While some Massachusetts officials are calling for an investigation into potential price gouging at the gas pump, an industry analyst said gas stations are actually more likely to lose money as the market fluctuates.
Russia’s invasion of Ukraine has led to high oil prices and skyrocketing gas prices, with Massachusetts seeing record highs at the pump. But energy expert Paul Sankey of Sankey Research said high prices were bad for gas station business.
“When the oil price is falling, gas stations make a lot of money. When the oil price goes up they actually lose money because they struggle to keep the price at the pump high enough,” Sankey said. “The gas station is at the mercy of all the other factors.”
Gas station managers told 7News that higher delivery costs for gas mean higher costs on their end, which are passed on to the consumer.
“[A gas station owner] really has no choice… the fact of the matter is his margins are already thin,” Sankey said.
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