Fuel Prices around the US of A??

[WillyDaP]

Filled up the Macan S yesterday for 2.96 at Costco -- Premium of course. From what I understand California recently passed a law where no more Gas Stations can be built, so the ones in existence have a monopoly and therefore can charge what they want to a degree. I have noticed the last two years when we were on vacation there that the prices of two stations close to each other can often vary a lot. Kinda of crazy since our little , underpopulated State, we not only have a new Convenience Store/Station going up constantly it is not uncommon to have 2-3 on a street corner.

[Bill in Bama]

Whenever gas prices rise some politician will call for hearings into the "price-fixing" practices of oil companies. They've never found any. Gas prices are determined by so many variables its almost impossible to predict. Local taxes play a big part, and the cost of delivery (distance from a terminal/pipeline) are also big factors. Big oil almost never makes profits on refining and marketing simultaneously, either one or the other is the way it mostly works. I've been out of the business for 17 years but keep tabs with some of my buddies still in the madhouse business. The spread between major oil company prices and independent ones was between 1-3 cents per gallon when I was last in business in 2006, recently it was as high as 21 cents, and is averaging 16-18 currently. That is unbelievable to me.
Government regulations also play a big part in pricing, particularly in CA, where "boutique" blends of gasoline are the norm and drive up prices tremendously. In recent years the lowest prices have been found in the Midwest, while historically they were in the Gulf Coast states (like mine). I'm not entirely clear on the reasons for this, but just enjoy the low prices while they last, one thing is for certain, they won't stay the same for long.

[WillyDaP]

Like you with the competition so fierce among the large corporations a big gap in pricing really does not seem very realistic, but when you start discussing price fixing among various Stations that can be a different story. Though this is often an agreement between stores in a select area, there is no doubt that occurs. I had a past customer who not only got caught doing this in Nebraska, he sold off his properties here and then got caught in California. There were other folks included in the bust, but I did not know any of them. In answer to why it seems fuel is also fairly reasonable in the Midwest, Bill, I wonder if it is due to the proximity of refineries in El Dorado, McPherson, Ks., Illinois , Oklahoma, etc.
I have to believe the costs associated with these refineries, often supplying a smaller population could mean the supply is almost always ample and it keeps competition high? Who knows, but I appreciate the reasonable prices in Nebraska and it
did not used to be like that, as a decade or two back we were quite high on fuel taxes, but the increases have been few and far between since.

[Tom]

We have several refineries here in the CA Bay Area, and our gas is still over $5/gallon most places. AAA has a map showing average prices of gas by state and county. If you factor out local taxes and octane differences (and CA-specific requirements), there is at least some correlation between gas prices and crude oil extraction.


https://gasprices.aaa.com/state-gas-price-averages/

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[WillyDaP]

There are so many variables out there, yet since the fuel tax in California happens to be close to 4 times that of Nebraska, it plays a huge part. One item I have noted is because the bulk of Nebraska's population is in the Omaha area, the prices in the Metro are quite a bit less than the rest of the State. Competition is insanely high when you have Convenience/Gas Stores on every corner, unlike your State where sometimes finding a Station is a chore. I agree, things are crazy, since Chevron is out of California and it is the second largest Oil Company/Producer in the US. Every State seems to have a different view on fuel costs and there is no doubt California has implemented pretty tough standards and many do not seem to have a rational basis. Some of the States in the Midwest have pipelines running right through them from the North or the South and there happens to be quite a few States with decent reserves surrounding them. I feel for you guys as the lack of competition has to play some part in the crazy pricing.

[blueline]

Filled up the truck today - Shell 93 octane Top Tier @ $3.699. (The GMC is 6.2L that calls for premium fuel or E-85.)

We also have non-ethanol fuel available in TN which is good for older cars, generators, small engines, etc. Mostly available in regular grade but premium non-ethanol does exist here and there.

[ClemsonBill]

Here in SC it’s 2.75-2.92 for 87oct. Not the cheapest but overall it’s a pretty cheap place to live so no worries for me. I bought my 2013 Boxster S in 2021 and registration/taxes were a paltry $321. Auto sales tax is capped at $500 max

[WillyDaP]

ClemsonBill, NebraskaBill would love your registration/property taxes as there is no cap on Sales Tax and Prop. Taxes for virtually all new Porsches will be well over a grand ----- I will be moving next door in about a week , ha. Of course, like most States there are other things that don't get taxed where I live , and it is nice food items at a Grocery Store are not taxed.

[blueline]

Filled up last night with Top Tier Shell V-Power Nitro+ 93 octane at $3.239. Pump price was listed at $3.589 before the Fuel Rewards discount program that's available at all Shell stations in our Mid TN area (Twice Daily chain). While the discount will vary (dynamic discount pricing), I'm not sure why the very large discount last night as it's usually only 5¢ to 10¢ per gallon. (10¢ is the largest I've seen prior to last night.)

The same fuel at a Shell station across town in Cool Springs (the Brentwood/Franklin area) this past Monday was $4.599 for the same 93 octane gas. Gas in the wealthy Williamson County MSA is almost always as much as a dollar per gallon more than in my part of town.

[blueline]

I just now saw why the extra 0.25¢ per gallon discount last night: it was game day for the Nashville Predators (NHL team) and Twice Daily offers an additional 0.25¢ discount on game days on top of the usual 0.10¢. (Twice Daily Shell is a major ad sponsor of the team.)

Ironically, we were on the way home from attending last night's Preds game and I made a last minute decision to fill up. I won't forget that promo. Hope it lasts!