Where and When to Refuel: A Revealed Preferences Approach to Local Gasoline Markets

This paper provides a systematic analysis of German car drivers’ refuelling behaviour. A dataset combining population-representative individual-level GPS-tracking and survey information with data on fuel prices is used to identify 922 refuelling stops between April and December 2023. Besides a discussion of the conducted data processing and cleaning steps, the paper provides insights into German fuel price developments and the competition situation of gas stations. The analysis of the identified refuelling trips shows that drivers most often refuel during shopping trips or on the way home and during times that are known for relatively low prices. The choice between available gas stations is predominantly based on proximity to the direct route, as drivers avoid detours even at the expense of higher costs. In the context of competition policy and market regulation, the findings suggest that the catchment area of gas stations is smaller than often assumed when defining the competition among gas stations. Nevertheless, the high density of gas stations in Germany provides consumers with a considerable choice set and gas stations with a competitive environment even in small geographic areas.