Why California gas station prices vary so wildly from station to station? (San Diego: how much, home)

[NoMoreSnowForMe]

Originally Posted by citizensadvocate

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.

I haven't been to Mexico since around 2000, but gas prices were WAY more expensive in Mexico than anywhere here in the US. Taxes in Mexico are really high on everything, including food - much, much higher than they are here. There are no subsidies that I'm aware of. When I was there, the sales tax was something like 16%, including food.

The market is free - after they pay the required taxes here. There is no law that I'm aware of that puts a maximum on prices. So, it's supply and demand - but they must collect the required local, state and federal taxes.

[expatCA]

Originally Posted by NoMoreSnowForMe

I haven't been to Mexico since around 2000, but gas prices were WAY more expensive in Mexico than anywhere here in the US. Taxes in Mexico are really high on everything, including food - much, much higher than they are here. There are no subsidies that I'm aware of. When I was there, the sales tax was something like 16%, including food.

The market is free - after they pay the required taxes here. There is no law that I'm aware of that puts a maximum on prices. So, it's supply and demand - but they must collect the required local, state and federal taxes.

The only time there is any control over such prices is during emergencies.

[citizensadvocate]

Originally Posted by NoMoreSnowForMe

I haven't been to Mexico since around 2000, but gas prices were WAY more expensive in Mexico than anywhere here in the US. Taxes in Mexico are really high on everything, including food - much, much higher than they are here. There are no subsidies that I'm aware of. When I was there, the sales tax was something like 16%, including food.

The market is free - after they pay the required taxes here. There is no law that I'm aware of that puts a maximum on prices. So, it's supply and demand - but they must collect the required local, state and federal taxes.

https://www.bajabound.com/before/driving/gasprices.php
Interesting I was just in TJ and prices are pretty much the same as on this website and under similar exchange rates.
Prices in different stations for regular varies from 17.30(0.90 USD)- 18.5(0.96USD) pesos a liter. or around $3.40-$3.62 a gallon. Interestingly the prices of different stations also didn't fluctuate as they did north of the border since last October when the prices in pesos were almost the same as today or maybe 18-19 pesos a liter even though many San Diego stations were higher per gallon around $3.75
Though for tourists paying in US dollars(accepted mostly near the border), like for most everything else they are likely to charge 10-20% higher for the privilege compared to the posted price in peso. Expect to pay up to $4 a gallon if you pay in dollars.

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. So prior to New Years Day of 2017 prices were similar to that in Texas. But nowadays there are stations other than Pemex with better quality gasoline. Most of supplies are from California though.

Back in the 2000s to 2012 many residents near the border drove big vans and trucks south of the border to fill up as the subsidized prices of Pemex did not spike nearly as quickly as oil prices caused prices north of the border on certain years caused prices to spike to near $5 a gallon in California at times. I was at Puerto Vallarta back in May of 2012 and prices there were equivalent to $3.50 while it was $4.50 in LA/Long Beach, CA

I did recently hear about the 16% sales tax rate. Which I was surprised as I always thought British Columbia, Canada has the highest sales tax in North America at 12% combined VAT and BC provincial. Locals also protested the decision to raise the special lower 10% border state taxes to the mainland Mexico rates as well. Its practically killing the malls and other US based or US goods retailers near the border as it would only drive traffic to same type of stores/goods north of the border. Which pretty much negates much tax revenue generation the move would make.

Back to the topic, I would be curious how is free market different in California than the other states I mentioned. Are they regulated or they just don't vary wildly for other reasons? I don't see why the same brand would be a dollar different just down the street in the same city.

[Samiamnh]

Just paid $1.89 in the Carolinas......Gas is insanely high in California because your crazy left wing governor has to pay for the swarms of illegals and homeless that you all welcome to your cities.....gas is cheap right now....your taxes are not.

[V8 Vega]

It's a lot more than our crazy left wing governor, the whole damn state is crazy Communist. The last election every tax increase passed! I can't believe so many people could be so stupid.

[Gentoo]

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.

You'd be surprised actually. Up the street from my house, there was once an Arco. One year, they did not renew their lease because they land owner wanted too much rent. They were already more expensive than the 7-11, Mobile, and some other gas station not far away. That spot has been empty for over ten years now as no one will rent it due to the lease price.

[Gentoo]

Originally Posted by citizensadvocate

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.

People in Tijuana can get gas at the Costco in Chula Vista where they already come to shop.

[Gentoo]

Originally Posted by Samiamnh

Just paid $1.89 in the Carolinas......Gas is insanely high in California because your crazy left wing governor has to pay for the swarms of illegals and homeless that you all welcome to your cities.....gas is cheap right now....your taxes are not.

Originally Posted by V8 Vega

It's a lot more than our crazy left wing governor, the whole damn state is crazy Communist. The last election every tax increase passed! I can't believe so many people could be so stupid.

Ah, this train's never late

[citizensadvocate]

Originally Posted by Gentoo

People in Tijuana can get gas at the Costco in Chula Vista where they already come to shop.

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 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.

[citizensadvocate]

Originally Posted by Gentoo

People in Tijuana can get gas at the Costco in Chula Vista where they already come to shop.

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]