Gas Prices

[aja8888]

When I started driving in the late 60's, the price of gas was about .35 (cents) a gallon. According to the on line inflation calculator I used that would be $2.39 today.

Having a pretty good idea what it takes to find oil $$$, secure leases $$$, get the oil out of the ground $$$, transport it to a refinery $$$, refine it $$$, transport it again to the gas stations $$$ not to mention all the supporting infrastructure and people $$$$$$$$$ to get all of that done, it's amazing to me that it's so cheap (and plentiful).

It is kind of amazing to see that the price has stayed with the rate of inflation. But for those who don't know the details of the technology of finding oil then getting it to the pump nozzle, the technology has advanced very far since the 1960's. Consider 3D seismic, horizontal drilling, advances in formation fracturing, fluids handling, better refining efficiency, etc.

 

[W2R]

$1.55 at Sam's Club, but I am not a member there any more. $1.81 at our favorite Exxon station.

If I bought all my gas at Sam's Club, that difference in price would pay for the membership. Oh well. The likelihood that I would actually do that is pretty low.

 

[Koolau]

Having a pretty good idea what it takes to find oil $$$, secure leases $$$, get the oil out of the ground $$$, transport it to a refinery $$$, refine it $$$, transport it again to the gas stations for the consumer $$$ not to mention all the supporting infrastructure and people $$$$$$$$$ to get all of that done, it's amazing to me that it's so cheap (and plentiful).

Roughly the price of bottled water and less than half the price of (our) milk!

 

[harley]

A little off topic, but I was wondering about other people's ideas.

Down here in SWFL gas prices are around $1.99 - $2.19. But there is one station in downtown Bonita Springs that has regular unleaded at $3.49, and premium is over $4. I'd noticed this before and assumed the sign was old and they had stopped selling gas. But the other day I saw a car at the pump, so I pulled in and they were actually pumping gas. And the price on the pump was the same as the price on the sign.

I can't figure this out except maybe there's something illegal going on, money laundering or something, and they are running a business but don't actually want any customers. It's a convenience store sort of place, check cashing and such, and the gas isn't a name brand. I'm really curious to see what other people would assume about such a place.

 

[Car-Guy]

That does seem odd. We have some some "no name" gas stations out here in the sticks (far away from any highways) that charge as much as 25 cents a gallon more than the stations near the highways but nothing like the difference you are talking about. Personally, I'd be afraid to buy gas from them. At that price I doubt they are selling much and it's probably old/stale and might even have water in it.

At those prices, maybe the customers are getting something else with a purchase of 20 gallons or more.

 

[Zathras]

I've seen gas stations charge more if they are the only one in a prime spot. For example, the only one that taxi drivers use near the airport, etc.
Usually it isn't that much of a difference though.

 

[Revlefty]

We in MO benefit from low gas taxes and a nearby refinery. $1.63 a gallon here today.

But those of us in Illinois RIGHT BY THE REFINERY still pay high prices.

 

[harley]

I've seen gas stations charge more if they are the only one in a prime spot. For example, the only one that taxi drivers use near the airport, etc.
Usually it isn't that much of a difference though.

Nope, this one is in a sort of crummy location, and plenty of competition nearby. There's definitely something going on there that I don't understand. Oh well, just one of those questions I'll never know the answer to.

 

[mpeirce]

Nope, this one is in a sort of crummy location, and plenty of competition nearby. There's definitely something going on there that I don't understand. Oh well, just one of those questions I'll never know the answer to.

Maybe the local Sheriff (/mayor/etc) owns it and it has the contract for all the patrol cars?

 

[braumeister]

I also wonder about a local station. It's a major brand and owned by a neighbor of mine (although I've never spoken with him). For years its price has consistently been at least 20¢ higher than any other in the area. The station is in a pretty good location but never has much business. When I drive by, I'm far more likely than not to see no cars at the pumps.

The owner lives in a very nice place and drives nice cars, so he's obviously making enough with this approach. I just find it odd. Dropping his prices to match nearby stations would surely give him several times the level of business he has now.

As for harley's situation, my jaw just drops at that kind of difference.

 

[Nodak]

$1.98 here in NE North Dakota

 

[Tom52]

Local gas stations today are at $2.00 (rounding up from the $1.99 plus nine tenths of a penny). Town 20 miles to the east were $1.76. Then another 45 miles north of there the price is $2.08. I can't figure out how there can be that much difference in price as all towns are in the same state (Iowa).

 

[rprun54]

Linton, Indiana. $1.66


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[splitwdw]

A little off topic, but I was wondering about other people's ideas.

Down here in SWFL gas prices are around $1.99 - $2.19. But there is one station in downtown Bonita Springs that has regular unleaded at $3.49, and premium is over $4. I'd noticed this before and assumed the sign was old and they had stopped selling gas. But the other day I saw a car at the pump, so I pulled in and they were actually pumping gas. And the price on the pump was the same as the price on the sign.

I can't figure this out except maybe there's something illegal going on, money laundering or something, and they are running a business but don't actually want any customers. It's a convenience store sort of place, check cashing and such, and the gas isn't a name brand. I'm really curious to see what other people would assume about such a place.

Company store, like in the old days?? My grandfather was just telling us about them. You had to buy your food from the company store. Could the same thing exist today?

 

[W2R]

Gas was $1.41 at our neighborhood Exxon today. Unbelievable!

 

[rodi]

Gas was $1.41 at our neighborhood Exxon today. Unbelievable!

That's a full buck cheaper than I paid at costco on Thursday.

But CA does have a lot of taxes on gas... that's the biggest driver of the price differences between the states.

 

[aja8888]

That's a full buck cheaper than I paid at costco on Thursday.

But CA does have a lot of taxes on gas... that's the biggest driver of the price differences between the states.

California gasoline tax is $0.23/gallon more than Louisiana.

Here's a nice tax map:

http://taxfoundation.org/sites/taxfoundation.org/files/GasTax-01.png

 

[W2R]

Well, whatever the reason, what a great surprise! We went on a pleasure drive around town afterwards just for some cheap fun.


I just looked on gasbuddy.com, and there are a couple of stations that have gas for $1.39 . Amazing.

 

[DrRoy]

Bought for $1.399 in Napoleon OH last Thursday. If the oil price pop holds, that might be my low for the cycle.

 

[rayinpenn]

$1.79 last fill up - here in southern Pennsylvania.


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[HF63]

At Sam's club close to Midway airport 1.63 yesterday!

 

[EastWest Gal]

That's a full buck cheaper than I paid at costco on Thursday.



But CA does have a lot of taxes on gas... that's the biggest driver of the price differences between the states.

I used to think that was true, but the highest gas tax in the country is now here in PA. Maybe it's the cost of shipping or the number of refineries in CA, I don't know. But even though we have high state gas tax, the price of gas is lower in than in MD or WV. VA has lower gas prices than PA. And there is a lot of variability within the state as well. It's mainly a supply and demand situation, I think.


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[REWahoo]

But CA does have a lot of taxes on gas... that's the biggest driver of the price differences between the states.

Taxes aren't the only reason. California requires a special "reformulated" blend of gasoline to reduce pollution, and that costs more and is produced at a limited number of refineries.

 

[ls99]

In SW PA, several counties, like Westmoreland, Cambria and Somerset all have exactly the same price regardless of brand. The general excuse is that this area is the end of some supply line. currently at $2.05.99. Except one privately owned station across from a BP, this is always 3 cents less than BP.

Sheetz privately owned chain in the area gives 3 cents per gallon off with an affinity card. I do use them. Diesel is at $2.59.99.

 

[Another Reader]

Also buried in the California price is the recently implemented "cap and trade" pollution tax. Supposedly anywhere between $0.10 to $0.50 per gallon in cost, depending on the market for the credits.