Why are gas prices so different from station to station?

Gas prices often differ because of three broad factors: taxes, fuel blends and margins. In mid-February 2021, gas prices averaged $2.51 per gallon, according to AAA.

Why do gas stations charge different prices for a gallon of gasoline?

In general, stations closer to interstates pay more for land, so prices are going to be higher. In some areas, stations charge more “because they can,” Wright said. “So you do have different priced fuel at different stations,” Morgan said.

Why do gas prices vary by state?

It’s not just taxes. Gas prices vary in part because refiners have to create more than 50 blends of gasoline to satisfy requirements of certain states, even cities. When shortages occur, local gas prices soar.

Do different gas stations have different quality gas?

A: Not so much, according to AAA’s report. In a survey of 1,002 adults, six in 10 drivers said they believe there are differences in gas quality sold by different stations, but seven in 10 said they choose their gas based on price or location.

Who determines gas prices at the pump?

The price of gasoline is made up of four factors: taxes, distribution and marketing, the cost of refining, and crude oil prices. Of these four factors, the price of crude oil accounts for nearly 70% of the price you pay at the pump, so when they fluctuate (as they often do), we see the effects.

Why are gasoline prices vary from station to station?

Moving crude oil to a refinery, through a pipeline or across an ocean, and on a truck to supply the station adds up. Based on contractual agreements, routes from rig to pump vary considerably, making one station’s gasoline more expensive than the other’s. Before the gas station owner puts those giant numbers on the marquee, taxes are added in.

What’s the difference between gas stations and grocery stores?

It’s not terribly different than the way most drugs are priced in the world. Gas stations are not the only one. Grocery stores that are part of the same chain will see the same products for different prices within the same city because for the same reasons. – Jim McKeeth Mar 6 ’12 at 18:55

Why are there two gas stations only a few miles apart?

This can result in two branded gas stations only a few miles apart selling gasoline at a price differential of as much as $0.50 per gallon. But the short answer is “because they can”.

Why does the price of gas vary from state to state?

Gas prices often vary from state to state or town to town because of three main reasons: taxes, fuel blends and margins. January 2019 began with gas prices averaging $2.26 per gallon, according to AAA.

Why do gas prices vary in same part of town?

Among the factors that might dampen prices, according to the researchers, is a rural or relatively less urban location, the presence of a carwash or convenience store, ownership by nearby supermarkets, and proximity to other gas stations, which indicates market competition.

How are gas stations different from each other?

In a survey of 1,002 adults, six in 10 drivers said they believe there are differences in gas quality sold by different stations, but seven in 10 said they choose their gas based on price or location. Only a third of drivers said they usually buy gasoline that contains detergent.

Why do gas stations make so much money?

Stations make most of their money on cigarettes, soft drinks and lottery tickets. It’s all about getting customers into the convenience store — but the bait is the cheapest gas price. Back when he owned his station, Ward would drive around scoping out his competition every day. But he only cared about one side of the road.

Is it legal to have two branded gas stations?

This can result in two branded gas stations only a few miles apart selling gasoline at a price differential of as much as $0.50 per gallon. But the short answer is “because they can”. It’s legal, provided that some people are paying less while others are paying more.