Gas Price Fluctuations Across the Country
If you’re planning on doing any traveling this summer, don’t use your local gas price to calculate expenses for your trip.
State, local and city taxes will vary widely and if you take the time to do any research whatsoever, you may note as much as a .15 cent difference in the price of a gallon of gas from region to region.
Although most of us expect gas prices to be higher in California due to their more stringent clean air requirements, what many of us don’t realize is that there are several other factors that will also influence how much we pay for gas that will vary widely depending on the region.
For example, the farther you get from Gulf Coast, which is from hence almost half of our gasoline supply is from, the more expensive gasoline gets.
In fact, the distance the refinery is from the actual crude oil supply can also impact the price per gallon by adding additional shipping costs to the final retail price.
In the event a refinery experiences any delay or slow down in production of gasoline, consumers in that area will also experience higher local prices. Hurricane Katrina, for example, resulting in spikes in prices all over the country.
Another factor is going to be the competition in a certain region. If, for example, an area has more than one gas supplier, there are bound to be lower prices as the suppliers jostle their way into the marketplace. Fewer suppliers, less need to be competitive and we pay more at the pump.
In some regions, environmental issues also impact gas prices. California is the best example, however, there are states that also require use of special gasolines. There may also be environmental programs restricting the transportation of storage of gasoline in certain regions that simply pass on any additional expenses straight to the consumer.
In short, don’t expect to pay the same price for gasoline from state to state or even from city to city. Take the time to research prices across the country prior to setting out for your trip so there aren’t any surprises and … be sure to bring your credit card.
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