Tag Archives: eco friendly

Price Discrimination at the Pump

January 4th, 2009

One of my first Monday Ideas Posts was about how Petrol Stations could improve their service.

I want to follow that up and push it a bit further.

Cafes are renowned for price discrimination ie Free Trade coffee for $0.50 extra however the coffee beans only make up a minor part of the production cost.

Petrol stations have this with premium petrol but I think they can do better.

Let’s help the customers help themselves.

Have a carbon credit rate, where you pay for your gas plus a premium to cover the avg carbon credits you would use for that tank of gas. 

By my calculations, using 22mpg and 12,000 miles/yr (from here: http://www.liveneutral.org/calculator/) you would pay$0.0045 per mile or 11 cents a gallon.

Why do this?

  • Customers know about global warming
  • They also still need to fill up their car.
  • You can help them do this without feeling guilty, garner extra revenue but also help build your brand for whent he day comes that fuel is no longer needed.

Thoughts? Would you pay extra for this? Should it be compulsory for businesses to pay the premium? Government vehicles?

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