Why California gas station prices vary so wildly from station to station? (San Francisco: credit card, neighborhood)

[lostsoul359]

Originally Posted by citizensadvocate

True, though I bet they would like one in the Tijuana Costco as they burn 1/4 tank of gas waiting in that big line at the border negating any advantage. Hence back in the days of Pemex subsidizes during High oil price times, those living north of the border whether Mexican Americans or others were reported to be hoarding multiple gas tanks of Pemex gas TJ to bring along up north. Maybe if border crossing procedures are as efficient as the Canadian border than things may be different but nowadays they can only take advantage of Costco’s up north probably once a month for most people. Unless they commute the border daily.

Now that Gavin Newsom the former San Francisco mayor is governor who knows what progressive policy he will throw next. But it’s guaranteed things are going to get worse. SF normally has CA’s highest average prices. While LA have some stations with California’s or in fact the continents highest prices but a much wider range of prices than San Francisco. Ie $3.70-$4.50 in SF vs $3-$4.90 in LA.

[/quote]

There is a Costco in Mexico, but the prices are higher than in USA

[slo1318]

Mexico gas is way more expensive than Ca

[NoMoreSnowForMe]

Originally Posted by citizensadvocate

You must be living under a rock to not remember the protests in 2017 when oil subsidies abruptly ended under deregulation of the market and prices at Pemex pumps spiked 20% overnight.

Me and the rest of the world, I guess.

[citizensadvocate]

Originally Posted by slo1318

Mexico gas is way more expensive than Ca

Here is the thing, Tijuana Mexico does have a Costco but no gas station I passed by Tijuana Costco just a week ago and saw no gas station. Of course US branded retailers like Costco would cost more if it has to be exported across the border onto foreign land than their home market stores north of the border.

Mexico gas stations only takes cash I heard, and they charge you "gringo rates" if you appear like a tourist particularly if you pay in US dollars. On top of that dishonest station owners are also known for cheating the gas meter as well to make you pay more as a clueless tourist.

Even though their price says 17.5 pesos a liter. or $3.40 USD a gallon a "gringo" is going to pay at least $4 a gallon for that gas.

Their supply is from California therefore no matter how much competition deregulation bring costs its never going to be as low as back during subsidies. Subsidies made a great difference when global oil prices skyrocketed in the 2000s particularly after Katrina in 2005, in 2008, and 2012. Though also note that Pemex prices also didn't tumble as fast as oil prices unlike their counterparts north of the border. So its kind of averaged out over a longer period of time. So instead of wildly swinging between $3-$4 in a period of time like it does in the free market it would remain around $3.50 give or take. during that time period in a regulated market.

Though interestingly in California it just makes no sense for some stations to sell that low when they could get away with selling it higher. Nor to sell it at a super high rate like the ones in LA. Wouldnt it make better sense for gas stations to keep the pricing between $3.30-$3.60 like they do in other states rather than going all over the map between $2.90-$4.00 in the same city or neighborhood even just a mile away. Or is it because gas stations in California know exactly which stations where tourists will fill up no matter what and where else they could gain local's business by offering a much lower rate?

[Gentoo]

Originally Posted by citizensadvocate

Here is the thing, Tijuana Mexico does have a Costco but no gas station I passed by Tijuana Costco just a week ago and saw no gas station. Of course US branded retailers like Costco would cost more if it has to be exported across the border onto foreign land than their home market stores north of the border.

Mexico gas stations only takes cash I heard, and they charge you "gringo rates" if you appear like a tourist particularly if you pay in US dollars. On top of that dishonest station owners are also known for cheating the gas meter as well to make you pay more as a clueless tourist.

Even though their price says 17.5 pesos a liter. or $3.40 USD a gallon a "gringo" is going to pay at least $4 a gallon for that gas.

Their supply is from California therefore no matter how much competition deregulation bring costs its never going to be as low as back during subsidies. Subsidies made a great difference when global oil prices skyrocketed in the 2000s particularly after Katrina in 2005, in 2008, and 2012. Though also note that Pemex prices also didn't tumble as fast as oil prices unlike their counterparts north of the border. So its kind of averaged out over a longer period of time. So instead of wildly swinging between $3-$4 in a period of time like it does in the free market it would remain around $3.50 give or take. during that time period in a regulated market.

Though interestingly in California it just makes no sense for some stations to sell that low when they could get away with selling it higher. Nor to sell it at a super high rate like the ones in LA. Wouldnt it make better sense for gas stations to keep the pricing between $3.30-$3.60 like they do in other states rather than going all over the map between $2.90-$4.00 in the same city or neighborhood even just a mile away. Or is it because gas stations in California know exactly which stations where tourists will fill up no matter what and where else they could gain local's business by offering a much lower rate?

I think it's this and perhaps the reputation of the brand. The 7-11 on Mission Gorge Road in San Diego is normally around 10 cents higher than the Arco directly across the street. They get away with this because Arco has a reputation for crappy gas.

[V8 Vega]

Where did Arco get a reputation for crappy gas? I use Arco all the time.

[CaliRestoration]

Originally Posted by V8 Vega

Where did Arco get a reputation for crappy gas? I use Arco all the time.

All gas in California is pretty crappy. In the South you can find tons of stations offering 93 octane fuel, in SoCal I remember there being maybe a couple within a 50 mile radius.

Not to mention that the fuel is mixed to work with SULEV type vehicles, so the gas regularly causes knocking in non-SULEV type vehicles.

[citizensadvocate]

Originally Posted by CaliRestoration

All gas in California is pretty crappy. In the South you can find tons of stations offering 93 octane fuel, in SoCal I remember there being maybe a couple within a 50 mile radius.

Not to mention that the fuel is mixed to work with SULEV type vehicles, so the gas regularly causes knocking in non-SULEV type vehicles.

Not to mention there is hardly any national brands left, brands like BP and Exxon has long pulled out of CA even though they still operate in other states.

[CaliRestoration]

Originally Posted by citizensadvocate

Not to mention there is hardly any national brands left, brands like BP and Exxon has long pulled out of CA even though they still operate in other states.

Which has the effect of exerting pressure on prices (higher).

[AndyChrono]

Originally Posted by citizensadvocate

Not to mention there is hardly any national brands left, brands like BP and Exxon has long pulled out of CA even though they still operate in other states.

Umm that's straight up false. BP owns ARCO, and ExxonMobil as the name suggests owns Mobil. Both companies obviously still have a heavy presence in CA.