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Author Topic: Gasoline price disparities- a short guide Back to Topics
PD

Moderator
Message Posted: May 28, 2013 1:54:57 PM

Gasoline prices can vary widely from state to state, even city to city. We recently received an e-mail from a member asking us to explain some of these pricing disparities. Let me address a few of the points that the member asked us to answer.

Question 1: Pricing differences vary between regular and premium. While some areas may see a 20c/gal difference between regular and premium some stations in some areas see a difference of 50c/gal or more!
Answer: Sales of premium gasoline have been in decline in some areas of the country, leading to less production from refineries and higher costs. Some cities/states don't consume as much premium gasoline as they used to so less is produced. This leads to low inventories of premium gasoline...

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REPLIES (newest first) Post a Reply
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ranger1169
Champion Author Harrisburg

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Message Posted: Apr 17, 2014 12:16:02 AM

really
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jcVA
Champion Author Virginia Beach

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Message Posted: Jun 7, 2013 12:37:52 PM

its nice to see we give to jerry lewis when the oil companies give our money and take credit for it...a##hOles
its our money
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priver
All-Star Author Alberta

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Message Posted: Jun 7, 2013 9:23:26 AM

greed..
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Donatelo
Champion Author Dayton

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Message Posted: Jun 7, 2013 8:15:00 AM

one raises prices , so the next one does too.
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fedupp
Champion Author Cleveland

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Message Posted: Jun 3, 2013 11:34:42 AM

The guy who wrote this article must have hit his head on the front of an oil tanker.Supply$demand!thats great,the only problem is Bush Cheney eliminated the bigest oil supplies on earth (Iraq 25% Venesuala even more than Iraq Russian Caucesses with the war on terror)now thats convinent for American oil men.I see people here blame Obama for oil prices? gas hit $4.50 A gal YEARS before we even knew his name!Does Obama suck?yes!but when it comes to oil prices the bigest scam in human history is still going on rite now.War on terror?NOT war on cheap crude oil YES YES AND YES AGAIN.
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honda0105
Champion Author Tallahassee

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Message Posted: Jun 2, 2013 12:42:55 AM

donatelo: supply & demand driving prices has long gone the way of the dodo bird when it comes to pump prices. Ever since August 2008 when prices hit $5 / gallon and more, the prices have definitely not followed supply and demand.
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honda0105
Champion Author Tallahassee

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Message Posted: Jun 2, 2013 12:41:24 AM

mdc: then how do you explain high prices in Florida? Not much income. Mostly fixed income seniors these days.
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mdcsgt
Champion Author South Carolina

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Message Posted: May 30, 2013 10:19:13 AM

Rocky has it right!! Zone pricing is what keeps gasoline prices a lot higher in the Northeast, California, and great lakes states. Per Capita incomes are greatly HIGHER in these regions of the country. ALAS, the "vultures" are going to get more for the product. That's why tons of retired workers move to the Southeast region of the country to live EASY with the FAT pensions they get. Can't live that EASY on retirement where the get the pension. ZONE PRICING is the reason and of course $20 to $40 per hour to do the same job a man in the southeast does for $8 to $18 per hour.
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rocky23hy
Champion Author Massachusetts

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Message Posted: May 30, 2013 6:28:04 AM

High octane fuel is not refined. To prevent preignition of fuel before top dead center of the piston stroke, octane is added later to the fuel chain and can be added at anytime. Every race car driver knows that.

The price of gasoline is based on your zip code. It's called Zone pricing. Another way of getting more money based on per capita income of the zip code.
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Donatelo
Champion Author Dayton

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Message Posted: May 30, 2013 3:24:17 AM

it is up to the owner, and supply and demand in the area.
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KAR120CSII
Champion Author Oregon

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Message Posted: May 30, 2013 2:09:38 AM

Thanks PD -- insightful and thoughtful
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KrsnaDragon
Champion Author Montreal

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Message Posted: May 30, 2013 1:46:31 AM

Old 'news'.
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bston
Champion Author Oklahoma City

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Message Posted: May 30, 2013 12:49:45 AM

Insightful.
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remay
Champion Author Houston

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Message Posted: May 29, 2013 11:56:34 PM

I ALWAYS look for vehicles that run on "regular", and NOT premium!
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lesndave
Champion Author Texas

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Message Posted: May 29, 2013 10:28:22 PM

Plain and simple: there is no rhyme or reason to them.....
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Ticobird
Champion Author Huntsville

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Message Posted: May 29, 2013 8:49:26 PM

Retail pricing of gasoline is most likely much more complicated and involved than described although I appreciate the attempt to enlighten.
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GatorGuy
Champion Author Columbia

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Message Posted: May 29, 2013 4:28:20 PM

Crazy-I've never seen regular gas more than midgrade.
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singlemom27
Champion Author Ventura

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Message Posted: May 29, 2013 4:22:58 PM

Whatever the local market will allow is the price we'll see.
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twinfanMN
Champion Author Minnesota

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Message Posted: May 29, 2013 3:24:17 PM

I would be curious to know why regular gas can be .25 cheaper in the next city 10 miles down the road
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XLR8RRick
Rookie Author British Columbia

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Message Posted: May 29, 2013 2:44:06 PM

Sure lets produce less and charge more
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quattro02
Champion Author Twin Cities

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Message Posted: May 29, 2013 2:38:15 PM

Much of this is crap. Pump prices (as well as crude prices) are not determined by supply and demand, just greed on Wall Street. Inventories mean nothing. If they did we would not see rising prices along with rising inventories.
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EconomiserAZ
All-Star Author Tucson

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Message Posted: May 29, 2013 2:32:29 PM

This is what the combination of greed/marketing gets us.
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Royski
Champion Author Los Angeles

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Message Posted: May 29, 2013 2:31:32 PM

Useful Q&A. Particularly
enlightening is the second
question (Why is midgrade
gas sometimes cheaper than
regular?)
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caddilac
Champion Author Ontario

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Message Posted: May 29, 2013 2:30:09 PM


Yesterday's blog repeated today.
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Diesel_Ram
Champion Author Dallas

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Message Posted: May 29, 2013 2:28:40 PM

Yesterdays story
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MitchelSdReview
Champion Author South Dakota

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Message Posted: May 29, 2013 2:27:57 PM

ok
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suportoffroad00
Champion Author Wisconsin

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Message Posted: May 29, 2013 2:27:56 PM

Have to agree, Northern WI is very high.
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Bud122CA
Champion Author California

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Message Posted: May 29, 2013 2:27:50 PM

Not only region pricing but also quality. All Reg. gas is not the same. Some stations have less ethanol but you may pay three of four cents higher at the pump. Long run, it's worth the three cents as you will save it at the mechanics.
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stonecold5005
All-Star Author Waco

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Message Posted: May 29, 2013 2:27:01 PM

ok
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nybearhunter
Champion Author New York

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Message Posted: May 29, 2013 2:22:27 PM

Taxes are the difference in price.
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EVBuddy
Champion Author Nevada

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Message Posted: May 29, 2013 2:21:52 PM

Its price and demand
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niceguytx
Champion Author Houston

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Message Posted: May 29, 2013 2:16:57 PM

They definitely do region pricing in cities and areas.
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ebowMA
All-Star Author Boston

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Message Posted: May 29, 2013 2:16:41 PM

for question 1, a Simpsons line is appropriate: "That's not a question, professor"
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Tralp
Champion Author North Carolina

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Message Posted: May 29, 2013 2:15:15 PM

ok
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Bruno44
Champion Author Texas

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Message Posted: May 29, 2013 2:11:40 PM

In our area, the difference between regular and premium is 20 to 23 cents, except for the greedmasters that jack up the difference. We don't buy anything from the greedy stations.
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mfgendron
Champion Author New York

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Message Posted: May 29, 2013 2:10:22 PM

25-30 cents more in Plattsburgh, NY than across the lake in Vermont. :((
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Hi1
Champion Author Ontario

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Message Posted: May 29, 2013 2:09:03 PM

Always buy regular.
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bbthegun
Champion Author San Diego

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Message Posted: May 29, 2013 2:08:34 PM

Generally a 20 cent disparity around here, but there are a few where it's 25 cents or so.
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SiouxFallsCheck
All-Star Author Sioux Falls

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Message Posted: May 29, 2013 2:08:31 PM

this is rather pointless. actually says very little
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marcelpr
Champion Author New Orleans

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Message Posted: May 29, 2013 2:05:34 PM

OK, Patrick, I have a question for you:

Why do people buy cars that require higher-priced premium gasoline?
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kiss4afrog
All-Star Author Twin Cities

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Message Posted: May 29, 2013 2:04:17 PM

Prefer they just sell to few stations instead of every station carrying premium if it's so hard for them to sell it.
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Toppers
Champion Author Atlanta

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Message Posted: May 29, 2013 2:03:15 PM

Usually 30 cents in the ATL!
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HEBster
Champion Author Kentucky

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Message Posted: May 29, 2013 1:59:27 PM

Sure do!
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fatboy97
Champion Author Twin Cities

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Message Posted: May 29, 2013 1:59:25 PM

Ok
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SOLONGCOLD
Champion Author Phoenix

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Message Posted: May 29, 2013 1:57:09 PM

they sure do vary ....3.89 here
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bluenvoy
Champion Author Nashville

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Message Posted: May 29, 2013 1:53:18 PM

OK.
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BKool
Champion Author Michigan

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Message Posted: May 29, 2013 1:52:54 PM

Premo is out with today's cars.
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driveonby1
Champion Author Toledo

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Message Posted: May 29, 2013 1:51:15 PM

ok.
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divebomber
Champion Author Nebraska

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Message Posted: May 29, 2013 1:50:52 PM

STATE EXCISE TAX!
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hallows
Champion Author St. Louis

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Message Posted: May 29, 2013 1:50:39 PM

Old news!
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