The economic issue in this observation involves the concept of homogeneous and differentiated product in microeconomics
According to Lindeman (2002), product homogeneity is present when the merchandise produced by companies are equivalent, the same. Homogeneous products are also a feature of perfect competition market such as wheat, grain, cooper, etc where purchasers only shoot for the cheapest goods available for sale (Lindeman, 2002).
In our circumstance, petrol and liquefied petroleum gas are homogeneous products regardless of the petrol train station or company (BP, Shell, Caltex, etc) you are buying from. In fact, the technique to extract and refine petroleum is nearly the same among those companies.
Main
