Why California gas station prices vary so wildly from station to station? (San Diego: rental car, sales)

[citizensadvocate]

While gasoline in California is notoriously expensive. There is one thing that puzzles me about the prices in CA is the discrepancy of prices from station to station which I don't see any where else I been to and I highly doubt real estate prices or rent costs would vary that much in the same neighborhood down the block.

I don't know anywhere else I been to that have prices that vary that great between the cheapest to the most expensive. Which the difference can be as much as $2 at times. The cheapest LA stations selling gas for $2.89 but the most expensive selling for $4.90 and there are prices all over the place. Often hovering between $3.20- $3.90.
Though the $4.90 figure in LA is higher than the highest price in San Francisco city proper of $4.50 a gallon though the range is smaller in San Francisco with $3.70 for the cheapest stations. If you include the greater Bay area the low can be as low as $3.20 up to the SF high.

In Denver Colorado I remember the prices between the cheapest stations and more expensive stations is normally less than $0.30 cents apart. There is not much price guaging in the only station next to the Denver airport where most rental cars fill up. Nowadays the prices range between $1.90 and $2.10 back in September when I was there it was around $3-$3.20

In Phoenix metro area and Arizona in general Prices range from $2.30-$2.80

In Tijuana Baja California which they now allow different stations to compete the prices for regular range from 17 pesos to 18.5 pesos a liter or $3.460-$3.61 USD a gallon
Obviously residents are not happy that they now paying similar prices as the celebrities and wealthy Bentley driving folks in Beverly Hills or West LA to fill their old guzzling cars, vans, and trucks. Their prices originally were 20% or $0.74 a gallon lower back in the days of subsidies prior to 2017. Or similar to what residents in Arizona or Oregon pay. Though interestingly their prices did not drop as dramatically since October after oil prices plunged and prices immediately north of the border dropped from $3.70-$3.20
Prices in San Diego county now range between $3-$4 but average around $3.40


In Vancouver BC metro area usually home of the highest average pump prices in Canada and North America as a whole range from CAD $1.12-$1.32 a liter or $3.21-$3.71 USD a gallon

Whats up with that?

We cannot blame taxes and environmental blends for this type of discrepancy as its not like some gas stations must comply and others don't really need to even if they are of the same brand gas?

[evening sun]

I have seen gas stations, directly across the street from each other with fifty cent price difference, I do not know how the more expensive one survives.

[TacoSoup]

Originally Posted by evening sun

I have seen gas stations, directly across the street from each other with fifty cent price difference, I do not know how the more expensive one survives.

One I had experience with, and others I’ve seen like it, have been at gnarly intersections. I think besides those who don’t pay attention or care, they’re banking on people not wanting to deal with the headache of going to the other one. I know I did on a few occasions, but never a fill up. And of course those right along or just off the freeway, most people aren’t gonna go looking for cheaper gas.

What I see often is some stations will be the same as the competitor across the street 90% of the time, but seem to arbitrarily significantly raise their price for a day here and there hoping to catch people off guard. Caveat emptor.

[msgsing]

Well. Just bought regular for 2.77 at Costco in my neighborhood. But several miles away near the freeways the price can be in the 3.90 range.

[Tulemutt]

People have gas credit cards for certain suppliers ... and are willing to pay the higher prices to use their card when they are feeling tight on cash in the moment.

[expatCA]

Originally Posted by citizensadvocate

While gasoline in California is notoriously expensive. There is one thing that puzzles me about the prices in CA is the discrepancy of prices from station to station which I don't see any where else I been to and I highly doubt real estate prices or rent costs would vary that much in the same neighborhood down the block.

I don't know anywhere else I been to that have prices that vary that great between the cheapest to the most expensive. Which the difference can be as much as $2 at times. The cheapest LA stations selling gas for $2.89 but the most expensive selling for $4.90 and there are prices all over the place. Often hovering between $3.20- $3.90.
Though the $4.90 figure in LA is higher than the highest price in San Francisco city proper of $4.50 a gallon though the range is smaller in San Francisco with $3.70 for the cheapest stations. If you include the greater Bay area the low can be as low as $3.20 up to the SF high.

In Denver Colorado I remember the prices between the cheapest stations and more expensive stations is normally less than $0.30 cents apart. There is not much price guaging in the only station next to the Denver airport where most rental cars fill up. Nowadays the prices range between $1.90 and $2.10 back in September when I was there it was around $3-$3.20

In Phoenix metro area and Arizona in general Prices range from $2.30-$2.80

In Tijuana Baja California which they now allow different stations to compete the prices for regular range from 17 pesos to 18.5 pesos a liter or $3.460-$3.61 USD a gallon
Obviously residents are not happy that they now paying similar prices as the celebrities and wealthy Bentley driving folks in Beverly Hills or West LA to fill their old guzzling cars, vans, and trucks. Their prices originally were 20% or $0.74 a gallon lower back in the days of subsidies prior to 2017. Or similar to what residents in Arizona or Oregon pay. Though interestingly their prices did not drop as dramatically since October after oil prices plunged and prices immediately north of the border dropped from $3.70-$3.20
Prices in San Diego county now range between $3-$4 but average around $3.40


In Vancouver BC metro area usually home of the highest average pump prices in Canada and North America as a whole range from CAD $1.12-$1.32 a liter or $3.21-$3.71 USD a gallon

Whats up with that?

We cannot blame taxes and environmental blends for this type of discrepancy as its not like some gas stations must comply and others don't really need to even if they are of the same brand gas?

Free market.

[NoMoreSnowForMe]

Different cities and counties have different taxes.

Quality, too. They can meet the minimums and be lousy for your vehicle.

It's worth it to get top tier gas, at least it definitely is for older vehicles. My old 93 Nissan just passed smog again, and I believe it's because, in large part, because I only use top tier gas in it. The cheapest top tier gas is at Costco.

[V8 Vega]

If your cars owners manual says regular gas is OK your wasting your money getting premium gas.

[dvxhd]

Originally Posted by citizensadvocate

In Phoenix metro area and Arizona in general Prices range from $2.30-$2.80

Speaking from experience, this isn't true at all. Gas prices fluctuate a lot, yes, so I'm not certain what the current prices in Phoenix are. However, after spending a few years there I would easily see prices vary much more than 50 cents on the same day in different parts of town, even by more than a dollar. Oddly enough, people in Phoenix pride themselves on economic segregation and there seems to be a parallel

That brings me to my point: it probably has something to do with traffic patterns, traffic volume, land values, behind-the-scenes contracts, cost of business, what people will pay, competition in the immediate area, etc. And to soothe conservatives, sure, taxes. In sum: it's a complex web of variables that will determine the cost. I've seen it a bit higher around the offices in El Segundo (likely people filling up before or after work), much higher around Beverly Hills (I wonder why), higher around LAX, a bit cheaper in southern Koreatown, etc.

The thing is that those gas stations probably have access to long-term data to which you aren't privy that helps them to establish a price point. For example, you may have two gas stations on the south side of a road near a freeway on-/off-ramp, with the station on the west side of the north-south road being 20 cents higher. They've most likely examined data and analyzed patterns to see that their sales spike in the evening (commuters exiting the freeway), and that the intersection would prove very difficult to maneuver to the eastern station and back south for someone likely just trying to get gas before going home. They've probably also tested pushing the limits on what people will pay.

I don't know how much time you've spent in these cities you mentioned, or how extensively you've traveled within them (or how closely you're studying gas prices in them), but box and whisker plot price variations are fairly common in my experience.

[citizensadvocate]

Originally Posted by NoMoreSnowForMe

Different cities and counties have different taxes.

Quality, too. They can meet the minimums and be lousy for your vehicle.

It's worth it to get top tier gas, at least it definitely is for older vehicles. My old 93 Nissan just passed smog again, and I believe it's because, in large part, because I only use top tier gas in it. The cheapest top tier gas is at Costco.

Originally Posted by NoMoreSnowForMe

Different cities and counties have different taxes.

Quality, too. They can meet the minimums and be lousy for your vehicle.

It's worth it to get top tier gas, at least it definitely is for older vehicles. My old 93 Nissan just passed smog again, and I believe it's because, in large part, because I only use top tier gas in it. The cheapest top tier gas is at Costco.

I be curious how free is the market in California vs other states I mentioned. Why the price differencial is generally not as big in those states. I know that Mexico is now experimenting with free market as well but the locals are not happy due to the loss of subsidies that kept their prices low all these years. With subsidies they originally paid Arizona and Texas prices. Nowadays they really wish Costco would soon open gas stations at Costco locations down south since Costco only accept credit cards, prices are much more fixed compared to the stations that only accept cash.

Though my examples in California is generally in the same city sometimes even just down the block even among same brands of gasoline.
Google maps and Gasbuddy really makes a difference in CA more than it does in other states where prices don’t vary over a dollar at best.