Why is gas in South Jersey generally so much cheaper than North Jersey? (Union: real estate, rent)

[tahiti]

Or, should I say "Southwest Jersey". I'm not quite sure of the answer. Typically my inlaws are paying average about 10 cents less per gallon. Something about the gas being shipped in through there (ports near Philly)? I don't know.

Today near my house the cheapest was $2.75. Further south (Middlesex/Monmouth) I saw $2.63. Burlington County and south is usually cheaper than that.

[apvbguy]

Originally Posted by tahiti

Or, should I say "Southwest Jersey". I'm not quite sure of the answer. Typically my inlaws are paying average about 10 cents less per gallon. Something about the gas being shipped in through there (ports near Philly)? I don't know.

Today near my house the cheapest was $2.75. Further south (Middlesex/Monmouth) I saw $2.63. Burlington County and south is usually cheaper than that.

alot of it has to do with shipping costs, real estate costs and competition, you live further from the refinaries, real estate costs might be higher in your area and there is probably less competition where you live. Also there is a lot of collusion and price fixing in the retailing of fuel, you will find that there are "zones" where prices are generally the same, in my area the stations on Rt 35 are higher priced than the ones on RT 36, and south of red bank is more expensive than north of red bank.

[billb7581]

A lot of the gas is coming from Carney's point, so the further south you are the less the transport cost is.

[nic529]

I live in Burlington County and travel up to Cranbury for work - gas is around 2.73 - I think the Raceway in Bordentown is 2.71

[desertsun41]

But using that silly theory then where there are no petro plants in the mid country gas should cost $7/gal there.

[apvbguy]

Originally Posted by desertsun41

But using that silly theory then where there are no petro plants in the mid country gas should cost $7/gal there.

what makes you think that there are no petro plants in the middle of the country? the only silly theory is an ill informed one

[Stone28]

You have three major refinerys in SW Jersey. Sunoco in Verga (West Depford area), Valero in Paulsboro and Citco a little south of Paulsboro. Then you also have Major refinerys in Delaware a few minutes from NJ and also in Philly.

Here's another little something not everybody knows about the oil business. Just because your buying Exxon gas dosen't mean that gas was produced by exxon. It could be refined in Hess. Gasoline is sold by octane. It is inspected. So that 88 octane from company A is no different that 88 octane from company B. I have worked in Oil refinerys and have seen many different companys tanker trucks fill up Hess.

[apvbguy]

Originally Posted by Stone28

You have three major refinerys in SW Jersey. Sunoco in Verga (West Depford area), Valero in Paulsboro and Citco a little south of Paulsboro. Then you also have Major refinerys in Delaware a few minutes from NJ and also in Philly.

Here's another little something not everybody knows about the oil business. Just because your buying Exxon gas dosen't mean that gas was produced by exxon. It could be refined in Hess. Gasoline is sold by octane. It is inspected. So that 88 octane from company A is no different that 88 octane from company B. I have worked in Oil refinerys and have seen many different companys tanker trucks fill up Hess.

all very true, the difference is in the additives added to the mix before delivery

[emanon]

The main reason gas might be cheaper in South Jersey is because gas station rents are cheaper in South Jersey. The gas in Central NJ comes from Bayway refineries and they are just as close to central NJ gas stations as the South Jersey refineries are to South jersey stations.
Cheap rent equals cheaper gas.

[tahiti]

Originally Posted by apvbguy

alot of it has to do with shipping costs, real estate costs and competition, you live further from the refinaries, real estate costs might be higher in your area and there is probably less competition where you live. Also there is a lot of collusion and price fixing in the retailing of fuel, you will find that there are "zones" where prices are generally the same, in my area the stations on Rt 35 are higher priced than the ones on RT 36, and south of red bank is more expensive than north of red bank.

actually, while I said "near my house" in my OP - prices as a whole in Northern NJ are higher, just not my specific area. Union, Essex, Hudson,Bergen all have equal or higher prices than I do. I see a big drop once I get on 35S, *after* the Rt 9 turn off. I guess b/c the majority of traffic heads down Rt 9, they can charge more when they are merged (35/9)...interesting stuff.

thanks for the answer.