Gas Prices (Cincinnati, Ashland, Milford: tax, live in, stores)

[WILWRadio]

Why are gasoline prices so high in the Cincinnati area? Right now in Missouri regular 87 octane is running less than $3 a gallon. In central Illinois it is around $3.20 a gallon. In Indy and most of central and southern Indiana it is running around $3.15 a gallon. Can't figure out why it is so high in OH and KY.

[kjbrill]

Originally Posted by WILWRadio

Why are gasoline prices so high in the Cincinnati area? Right now in Missouri regular 87 octane is running less than $3 a gallon. In central Illinois it is around $3.20 a gallon. In Indy and most of central and southern Indiana it is running around $3.15 a gallon. Can't figure out why it is so high in OH and KY.

Because we don't own any oil companies.

[Arctic_6]

Are you looking at major urban areas in Missouri or is your data from elsewhere? There isn't anything nearly on the scale of the Cincy metro in Central Illinois. Gas prices tend to run much higher in urban areas. On my drives to Virginia I often see the prices drop substantially once I'm in less urbanized areas.

They've also come down a bit since this post. I'd guess that gas prices are high and lag in declining because we tend to import our oil from other places (what brill said) and because we're a major urban area. Just be glad you don't live in Asheville, NC. Their gas prices are some of the most miserable I've ever seen, and they sometimes run out if a rough hurricane season hampers transport.

[WILWRadio]

Both rural and urban areas. I've noted in Indy for examples prices ranging from $2.99 a gallon to $3.48 yesterday! Incredible to see that kind of difference. Prices in rural areas such as the city of Anderson which is 35 miles NE of Indy are on the high end around $3.40 a gallon. Small towns that I've been through around here have prices that are higher than the city and suburbs as a general rule.

In MO the cities usually have lower prices than rural areas but not always. The rural towns where I previously lived before moving to Indy recently are a perfect example. One called Richmond has prices that are usually about equal to those in the KC area. Lexington has prices that are always lower and in some cases by a substantial amount.

[t45209]

There's no doubt that there is an element of irrationality to gas prices, but I'm not sure I agree with your original statement about local prices being different from other Midwestern regions. For example, last Saturday we took a little family drive out east through Milford and then on out through Clermont County and a little bit into Brown County. Before we left Cincinnati, we got gas in Columbia Tusculum for $3.21. However, as we exited Milford and headed east on 131 toward Stonelick, we quickly noticed the gas prices dropping. We saw prices of $3.07, $3.12, and $3.15. The more reasonable question is how can the price of gas routinely fluctuate 20 to 30 cents over night? That's nearly a 10% swing, especially once you take out the roughly 46 cents we pay in gas tax in Ohio.

[kjbrill]

Where I live Speedway sets the gas prices. If they change their price, up or down, within short order everyone else either matches or is within a cent or two of them. I am not sure why this is, although Speedway does have a lot of pumps at their stations so I expect controls a considerable volume.

I believe Speedway is an outgrowth of the old Ashland Oil Co. which is now owned and controlled by Marathon. I also understand Speedway is the largest chain in southwest Ohio.

One thing is sure, gas stations no longer deserve to be called service stations as they provide no services. They really are food marts/convenience stores which dispense gas.

The price fluctuation is rather unbelievable. About the only thing we can be sure of is if we go to a station right off the interstate we will pay more.

[American Luxury]

It seems like once gas gets close to $3.20, it always shoots back up to $3.49. It's at $3.28 right now, we'll see if it happens again.

[WILWRadio]

It just jumped up to nearly $3.40 in Indy at the stations that previously were selling it for around $3.00. Incredible to see these kinds of price changes over a 24 hour period. No doubt it will rise again in Cincy very soon.

[kjbrill]

This morning I was driving up through town and noticed gas at 309.9, the lowest I have seen it in a few weeks. So after stopping at the bank for some cash I needed, I went to the gas station and filled up. I can usually drive a month on about a tank. But whenever I see a price like that I fill up. If I wait, invariably by the afternoon the price will be 349.9 or higher. So I don't hesitate or try and speculate whether the price may go lower. I grab it while the getting is good. Still no idea why the price fluctuates so wildly.

[WILWRadio]

^^^Prices are jumping all around here in Indy still. I guess on the bright side at least we are not seeing much price fixing going on. With such a great disparity of pricing among area stations it would seem as though there is little collusion going on with the owners.