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gas prices...


torvald

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during the past few short texas roadtrips, i've noticed gas prices in the sticks

are between 10-25 cents cheaper per gallon. i don't mean in spring or the

woodlands, i mean in the tiniest of towns out in the middle of nowhere ---

with one gas station, maybe two. once you get closer to houston the prices

creep back up again.

so, my layman's question is: why would the gas be more expensive in

a large city like houston? this is why i assumed it would be cheaper:

--- competition between multiple gas stations.

--- tanker truck delivery to same brand gas stations are closer in the city.

--- it's processed nearby in texas city.

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last little trip i took (about three weeks ago), i noticed the same thing. somewhere between ?? and ?? (waco was in between there somewhere), the gas was way cheaper. ALL gas - from off brand to shell.

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I think the additives required for smoggy counties is definitely part of why you see all the cheap gas out in the middle of nowhere. The clue for this is when you cross the county line and the gas plummets, which you have in many big metros (even outside Texas).

I think part of it though is people in the cities just accept the higher prices and don't always shop around. Tonight in Dallas I went a couple miles out of my way to buy gas at $2.64 which isn't very common around here right now (although it is easy to find it that cheap in Fort Worth), but I could have spent over $3 a gallon in a few busy areas. With so many poeple in the cities, some sucker is always willing to get overcharged at the pump. They also say that prices are higher right near the highway which I think is the same effect.

Jason

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if adding something makes gasoline "cleaner" shouldn't it be added everywhere?

i guess since some don't have to because the law doesn't make them, they won't add the cleaning agents on their own. <_<

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during the past few short texas roadtrips, i've noticed gas prices in the sticks

are between 10-25 cents cheaper per gallon. i don't mean in spring or the

woodlands, i mean in the tiniest of towns out in the middle of nowhere ---

with one gas station, maybe two. once you get closer to houston the prices

creep back up again.

so, my layman's question is: why would the gas be more expensive in

a large city like houston? this is why i assumed it would be cheaper:

--- competition between multiple gas stations.

--- tanker truck delivery to same brand gas stations are closer in the city.

--- it's processed nearby in texas city.

Anyone try driving Interstate 10 from Baytown to Katy? Notice how gas prices rise by 10 to 15 cents the further west you go?

I'd hypothesize that areas with higher-income demographics don't care so much about a dollar here or a dollar there and are generally more interested in saving their time by using the gas station that is closest to where they happen to be. The effective lack of competitive pressure in these areas allows for higher prices, as set by the retailer.

In poorer areas, every dollar is valued more because there are fewer to go around...so competition is more intensive and prices reflect that.

Just a theory...

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I noticed this a couple weeks ago when I was in southwestern New Mexico.

The most expensive gas we bought the entire trip from Houston to Silver City and back was right here in Houston, $2.95/gallon.

We didn't see anything above $2.89 the rest of the trip, which surprised me, since we've noticed that gas is usually 30-40 cents higher in little remote West Texas and New Mexico towns than it is in Houston.

The most remote gas station we went to was probably in Mimbres Valley, NM...I would guess it's about population 100, and located about 3-4 hours from the nearest interstate, and there's one gas pump in the whole "town." Gas was $2.74 there, more than 20 cents cheaper than Houston.

The cheapest gas we saw the whole trip was in El Paso, at $2.64/gallon...30 cents cheaper than Houston. Maybe El Paso doesn't have to use the additives for air quality...although their air quality was visibly MUCH worse than Houston's.

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check out the shell on san felipe and willowick (i think that's it). sheesh!

I drove by there the other day....prices were higher somewhere else...I don't recall where the somewhere else was. The Shell on Kirby, that is now gone, always had mighty high prices.

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I noticed this a couple weeks ago when I was in southwestern New Mexico.

The most expensive gas we bought the entire trip from Houston to Silver City and back was right here in Houston, $2.95/gallon.

We didn't see anything above $2.89 the rest of the trip, which surprised me, since we've noticed that gas is usually 30-40 cents higher in little remote West Texas and New Mexico towns than it is in Houston.

The most remote gas station we went to was probably in Mimbres Valley, NM...I would guess it's about population 100, and located about 3-4 hours from the nearest interstate, and there's one gas pump in the whole "town." Gas was $2.74 there, more than 20 cents cheaper than Houston.

The cheapest gas we saw the whole trip was in El Paso, at $2.64/gallon...30 cents cheaper than Houston. Maybe El Paso doesn't have to use the additives for air quality...although their air quality was visibly MUCH worse than Houston's.

Also some of the Gas in that part of NM - near Silver City - is 85 octane.

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Also some of the Gas in that part of NM - near Silver City - is 85 octane.

I noticed that...what's the difference?

We have noticed that we seem to get better gas mileage out west where they have lower octane gas. Is there a correlation? I usually get 30 mpg in Houston, but I'll get 32-33 mpg out west....and even had gas mileage approaching 36-37 mpg on a couple tanks up in Colorado a few years ago.

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I noticed that...what's the difference?

We have noticed that we seem to get better gas mileage out west where they have lower octane gas. Is there a correlation? I usually get 30 mpg in Houston, but I'll get 32-33 mpg out west....and even had gas mileage approaching 36-37 mpg on a couple tanks up in Colorado a few years ago.

That most likely has to do with driving habits. Urban vs. rural aren't typically comparable, even if you stay completely on the freeway.

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I noticed that...what's the difference?

We have noticed that we seem to get better gas mileage out west where they have lower octane gas. Is there a correlation? I usually get 30 mpg in Houston, but I'll get 32-33 mpg out west....and even had gas mileage approaching 36-37 mpg on a couple tanks up in Colorado a few years ago.

I always thought it was due to altitude, i.e. that you can get away with running cars at lower octane in higher altitudes.

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Was at a Habitat house yesterday in a very black neighborhood/area and Gas prices were very high compared to the nicer areas. We are talking $3.09 for regular, I saw a $3.05 a bit futher down and then finally when I drove closer to the Heights I was able to buy the premo gas for $3.05 the cost of regular a few miles north of there.

Explain that now! I run a small business on the side and I have begun to notice that fuel costs a bit more in the poorer areas of town then in the middle class areas. There is validity to the high prices charged around River Oaks and West U though so perhaps if we are hunting for gas we go to the more average areas of town or check out:

http://autos.msn.com/everyday/gasstations.aspx?zip=77023

Scharpe St Guy

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The majority of our higher gas prices come from the added ethanol and tax we pay for our bad air. The EPA or one of those organizations makes it so a county with bad air quality is charged a tax and forced to add more ethanol to the fuel...which is pretty much what some people had already said

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The majority of our higher gas prices come from the added ethanol and tax we pay for our bad air. The EPA or one of those organizations makes it so a county with bad air quality is charged a tax and forced to add more ethanol to the fuel...which is pretty much what some people had already said

I am unaware of any additional tax on Houston gas. In fact, I seriously doubt it. Distribution problems related to the switch from MBTE to Ethanol DID cause prices to jump in Houston, but I don't think EPA has any taxing authority. We pay the same tax as Muleshoe.

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I am unaware of any additional tax on Houston gas. In fact, I seriously doubt it. Distribution problems related to the switch from MBTE to Ethanol DID cause prices to jump in Houston, but I don't think EPA has any taxing authority. We pay the same tax as Muleshoe.

Don't shoot the messenger...that was what I heard on the news the other day. Maybe I shouldn't read too deeply into because it was Ch. 2...but eh whatever.

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  • 4 months later...
Anyone try driving Interstate 10 from Baytown to Katy? Notice how gas prices rise by 10 to 15 cents the further west you go?

I'd hypothesize that areas with higher-income demographics don't care so much about a dollar here or a dollar there and are generally more interested in saving their time by using the gas station that is closest to where they happen to be. The effective lack of competitive pressure in these areas allows for higher prices, as set by the retailer.

In poorer areas, every dollar is valued more because there are fewer to go around...so competition is more intensive and prices reflect that.

Just a theory...

Or, it could be the cost rises as you travel AWAY form the source of the petroleum. I am sure Milk costs a whole lot less next to the dairy than it does 60 miles from the dairy.

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Or, it could be the cost rises as you travel AWAY form the source of the petroleum. I am sure Milk costs a whole lot less next to the dairy than it does 60 miles from the dairy.

Well, the original posts were referring to how cheap the gas was out in the country, AWAY FROM HOUSTON. I assume there's more gasoline being refined here in the Houston area, than there is up in the mountains in southwestern New Mexico. Hence my question of why I was paying $0.20 - $0.30 more in Houston than in a remote mountain town 4 hours from the nearest interstate (and about 16 hours from Houston, where a lot of the gasoline is being refined.)

I noticed on a drive to Lockhart this weekend that the trend has reversed itself. I filled up at $1.98 per gallon here in Houston this weekend, while everything I saw on I-10 going west and in Lockhart was at least $2.19 - $2.29 per gallon.

I won't even try to understand it anymore.

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