Not Logged In Log In   Sign Up   Points Leaders
Follow Us    11:38 AM

Message Forum - Read Message

Category: GasBuddy Official Blog > Topics Add to favorite topics   Post new topicPost New Topic
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...

Visit GasBuddy Blog for full article
REPLIES (newest first) Post a Reply
ranger1169
Champion Author Harrisburg

Posts:6,182
Points:1,212,405
Joined:Apr 2011
Message Posted: Apr 17, 2014 12:16:02 AM

really
jcVA
Champion Author Virginia Beach

Posts:1,900
Points:411,310
Joined:Aug 2008
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
priver
All-Star Author Alberta

Posts:961
Points:90,600
Joined:Apr 2013
Message Posted: Jun 7, 2013 9:23:26 AM

greed..
Donatelo
Champion Author Dayton

Posts:1,223
Points:331,165
Joined:Apr 2011
Message Posted: Jun 7, 2013 8:15:00 AM

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

Posts:7,123
Points:43,425
Joined:May 2013
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.
honda0105
Champion Author Tallahassee

Posts:24,057
Points:2,389,665
Joined:Nov 2008
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.
honda0105
Champion Author Tallahassee

Posts:24,057
Points:2,389,665
Joined:Nov 2008
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.
mdcsgt
Champion Author South Carolina

Posts:2,126
Points:705,800
Joined:Feb 2013
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.
rocky23hy
Champion Author Massachusetts

Posts:3,037
Points:2,120,955
Joined:Sep 2003
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.
Donatelo
Champion Author Dayton

Posts:1,223
Points:331,165
Joined:Apr 2011
Message Posted: May 30, 2013 3:24:17 AM

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

Posts:6,082
Points:1,266,040
Joined:Apr 2010
Message Posted: May 30, 2013 2:09:38 AM

Thanks PD -- insightful and thoughtful
KrsnaDragon
Champion Author Montreal

Posts:5,992
Points:1,306,590
Joined:Nov 2011
Message Posted: May 30, 2013 1:46:31 AM

Old 'news'.
bston
Champion Author Oklahoma City

Posts:5,016
Points:1,419,900
Joined:Mar 2011
Message Posted: May 30, 2013 12:49:45 AM

Insightful.
remay
Champion Author Houston

Posts:9,996
Points:2,885,915
Joined:May 2006
Message Posted: May 29, 2013 11:56:34 PM

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

Posts:6,151
Points:1,472,775
Joined:May 2011
Message Posted: May 29, 2013 10:28:22 PM

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

Posts:5,455
Points:1,781,975
Joined:Oct 2009
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.
GatorGuy
Champion Author Columbia

Posts:4,322
Points:1,909,990
Joined:Jan 2009
Message Posted: May 29, 2013 4:28:20 PM

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

Posts:6,256
Points:1,401,970
Joined:Apr 2011
Message Posted: May 29, 2013 4:22:58 PM

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

Posts:3,138
Points:879,485
Joined:Jun 2011
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
XLR8RRick
Rookie Author British Columbia

Posts:63
Points:13,945
Joined:May 2013
Message Posted: May 29, 2013 2:44:06 PM

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

Posts:2,763
Points:214,890
Joined:Nov 2003
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.
EconomiserAZ
All-Star Author Tucson

Posts:877
Points:172,010
Joined:Mar 2011
Message Posted: May 29, 2013 2:32:29 PM

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

Posts:3,788
Points:579,350
Joined:Oct 2006
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?)
caddilac
Champion Author Ontario

Posts:20,225
Points:2,918,035
Joined:Apr 2007
Message Posted: May 29, 2013 2:30:09 PM


Yesterday's blog repeated today.
Diesel_Ram
Champion Author Dallas

Posts:9,606
Points:2,292,475
Joined:Jan 2009
Message Posted: May 29, 2013 2:28:40 PM

Yesterdays story
MitchelSdReview
Champion Author South Dakota

Posts:1,416
Points:392,735
Joined:Jun 2008
Message Posted: May 29, 2013 2:27:57 PM

ok
suportoffroad00
Champion Author Wisconsin

Posts:1,309
Points:1,807,765
Joined:Aug 2007
Message Posted: May 29, 2013 2:27:56 PM

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

Posts:10,190
Points:2,348,970
Joined:Jul 2008
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.
stonecold5005
All-Star Author Waco

Posts:819
Points:20,705
Joined:Mar 2012
Message Posted: May 29, 2013 2:27:01 PM

ok
nybearhunter
Champion Author New York

Posts:3,103
Points:688,750
Joined:Jul 2012
Message Posted: May 29, 2013 2:22:27 PM

Taxes are the difference in price.
EVBuddy
Champion Author Nevada

Posts:19,783
Points:3,761,885
Joined:Sep 2004
Message Posted: May 29, 2013 2:21:52 PM

Its price and demand
niceguytx
Champion Author Houston

Posts:16,896
Points:3,484,655
Joined:Sep 2005
Message Posted: May 29, 2013 2:16:57 PM

They definitely do region pricing in cities and areas.
ebowMA
Champion Author Boston

Posts:1,023
Points:1,013,050
Joined:Apr 2008
Message Posted: May 29, 2013 2:16:41 PM

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

Posts:3,942
Points:964,670
Joined:Oct 2012
Message Posted: May 29, 2013 2:15:15 PM

ok
Bruno44
Champion Author Texas

Posts:10,235
Points:2,525,980
Joined:Sep 2007
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.
mfgendron
Champion Author New York

Posts:3,427
Points:969,630
Joined:Sep 2008
Message Posted: May 29, 2013 2:10:22 PM

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

Posts:7,782
Points:2,444,270
Joined:Jun 2007
Message Posted: May 29, 2013 2:09:03 PM

Always buy regular.
bbthegun
Champion Author San Diego

Posts:7,662
Points:2,378,125
Joined:Sep 2006
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.
SiouxFallsCheck
All-Star Author Sioux Falls

Posts:667
Points:239,820
Joined:Mar 2013
Message Posted: May 29, 2013 2:08:31 PM

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

Posts:4,016
Points:1,149,835
Joined:Dec 2011
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?
kiss4afrog
All-Star Author Twin Cities

Posts:843
Points:483,590
Joined:Jan 2008
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.
Toppers
Champion Author Atlanta

Posts:12,187
Points:3,245,725
Joined:Mar 2005
Message Posted: May 29, 2013 2:03:15 PM

Usually 30 cents in the ATL!
HEBster
Champion Author Kentucky

Posts:11,897
Points:3,132,910
Joined:May 2006
Message Posted: May 29, 2013 1:59:27 PM

Sure do!
fatboy97
Champion Author Twin Cities

Posts:5,710
Points:2,481,650
Joined:Aug 2007
Message Posted: May 29, 2013 1:59:25 PM

Ok
SOLONGCOLD
Champion Author Phoenix

Posts:1,568
Points:354,045
Joined:Nov 2010
Message Posted: May 29, 2013 1:57:09 PM

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

Posts:17,387
Points:2,144,865
Joined:Oct 2005
Message Posted: May 29, 2013 1:53:18 PM

OK.
BKool
Champion Author Michigan

Posts:5,665
Points:2,017,620
Joined:Aug 2005
Message Posted: May 29, 2013 1:52:54 PM

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

Posts:2,078
Points:403,535
Joined:Jun 2007
Message Posted: May 29, 2013 1:51:15 PM

ok.
divebomber
Champion Author Nebraska

Posts:9,349
Points:2,590,520
Joined:Jun 2007
Message Posted: May 29, 2013 1:50:52 PM

STATE EXCISE TAX!
hallows
Champion Author St. Louis

Posts:7,949
Points:3,583,200
Joined:Jun 2004
Message Posted: May 29, 2013 1:50:39 PM

Old news!
bearzz
Champion Author California

Posts:4,610
Points:1,172,950
Joined:Mar 2011
Message Posted: May 29, 2013 1:47:23 PM

Repeat . . . but I see that I misinterpreted the article first time through. It is addressing the disparity of cost between regular and premium . . . I assumed it was because of higher octane in premium. You pay more for "dleuxe", "premium" rather than the lower quality in most things.
Post a reply Back to Topics