Great economy out West means high fuel prices

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GON

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The fuel prices out West seem out of line when compared to the other parts of the country. I live in Utah, and drive a lot through Wyoming, Nevada, Arizona, and California.

I can only surmise, that outside of a California- the reason is a great economy. The quickie marts don't have to offer low gas prices to get people into their stores. I have noticed a lowering of prices in Wyoming this Winter, I think it may be a result of less tourist running through the state.

Most surprising in Nevada- with prices often so high I can sometimes pay less in parts of California. Seems way out of wack for a state that makes it money on tourism in many parts.

I use Costco as my bellweather for fuel prices. In California for example, I paid $3.33 at the Victorville COSTCO. I could purchase non COSTCO fuel in the area as low as $3.39 at Pilot (3.36 with my frequent customer loyalty card).

In Utah, I have been paying $2.29 per gallon at Costco. Yet, most of the stations near Costco, and near my home are at or around $2.89 per gallon. I just sense business is so good in Utah- people don't care. Before being transferred to Utah, I lived in rural Pennsylvania. Price of fuel was everything to most residents. Prior to Pennsylvania I lived in Arizona, and fuel was competitively priced. Today, even Arizona appears to be out of synch with its fuel prices.

Always through fuel was a low margin item across America. Not out West.

(Picture is of Costco fuel in SLC at pump on 23DEC2019).

costco fuel.jpg
 
We had low oil prices for a good while … but moved up again

Breaking down the tax per gallon can be interesting as well
 
When we moved to Az from Pa in 2005 gas prices were the same. For 5 or 6 years now we've been consistently higher, sometimes a little, sometimes a lot. I'm in northern Az and we're almost always quite a bit higher than Phoenix. Right now we're 10 cents higher than Pa hometown and 10 cents lower than Phoenix which is unusual. Not sure it's economy driven.
 
In the past 12 months, the futures market price for gasoline has gone up from $1.25 to $1.75 with the brief push to $2.00 during the spring. I would think most of the regional discrepancies are state and municipal taxes. You would have to define those before you could determine the effect of the economy on pricing.
 
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Originally Posted by csandste
My last Costco fill up was 1.839. Metro St. Louis economy must really suck.


Missouri has the second lowest gasoline tax in America, at $0.35 per gallon. California is highest at $0.80 per gallon, according to Wiki.
smile.gif
 
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Originally Posted by jhs914
I am sure some of the higher prices are attributable to the economy but in California you have the highest tax rates in the country. According to this article over 73 cents is added to the price by California taxes and Federal taxes. https://www.mercurynews.com/2018/09/04/gas-tax-what-you-actually-pay-on-each-gallon-of-gas/


Well known among many why California prices are higher. From taxes, barriers to entry for competition, and even special environmentally friendly pumps.

What I can't understand is the prices in NV, UT, AZ, and sometimes WY. The price swing is not local taxes- I drive a whole lot with a V10 gasser and trailer. I am price crazy over unleaded. When there is a .60 spread per gallon between Costco and the vast majority of other area stations.... All I can come up with is people out West have money and currently are more centered on convenience than price.
 
I don't think it has anything to do with the economy. It's basically based on the price of oil, the local taxes and the requirements of the gas for the region. At one point gas in CA was the highest because only a few refineries could make the gas that their clean air laws require. Then it's just supply and demand. Costco has a habit of not marking things up too much, you'll notice not too many other stores can do $5 chickens or $1.50 hot dogs. Those sometimes end up being a loss leader for them and they don't need to make money on gas, they just need to have it cheap so people go there and shop. Other gas stations need to make money so of course they're going to be priced higher. Location also matters, the gas stations near the highway are always higher, those are for people who just want to fill up and go and aren't so price conscious, the ones further away are cheaper. All about location sometimes.
 
3.39 is a buck more than most places in the state, why doesn't an enterprising station charge a mere 96 cent markup and make bank?

Agree with the others, it's a logistics issue.
 
This article sums it up pretty well as to why CA enjoys some of the highest prices for gasoline:

Gas prices in California rise due to refinery maintenance issues

  • Environmental rules on CA-only gas blends mean there is no importing of gasoline
  • Relies on crude imports from the middle east
  • Number of refineries is not growing so supply is fixed

Quote
"You might ask - why can't California simply import gasoline products from outside the state when something happens at our refineries?" Blasky said. "The reason is because our state uses a special type of gasoline that is more environmentally friendly, but is basically unused by the rest of the world."


Although CA has high tax on fuel, according to taxfoundation.org, the difference in tax between CA and TX is only ~ $0.40/gal.

Imo, this is purely a man made problem.
 
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2 days before Christmas Thorntons Grayslake IL 1.96 87 octane regular
1 day before Christmas Thorntons Grayslake IL 2.67 87 octane regular

I dare Gas Buddy to explain that one or gouge

It's dropped 3 cents today
 
Originally Posted by AZjeff
Originally Posted by GON
All I can come up with is people out West have money and currently are more centered on convenience than price.


Average gas prices by state: AAA gas prices
Average wage by state: wage
Cost of living by state: COL

Figure it out.


Very good chart. Thanks for posting it.
 
Higher income of the population doesn't make gas stations charge more. Usually gas is higher in low income neighborhoods from what I have seen.
 
Originally Posted by Farnsworth
PA has the highest gas tax, second is CA, and third is WA.



Since July 1 California has got Pennsylvania beat.
 
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