ATLANTA – Gas prices are on the rise again, and you may be wondering why prices can vary so much corner to corner, street to street.
You’ve seen it. The price of regular unleaded is $2.45 on one corner, but just a few hundred yards away it’s $2.75.
11Alive’s Why Guy Jerry Carnes found gasoline selling for $2.45 at a station on Clairmont Road, but just around the corner on North Druid Hills road he found a station selling regular unleaded for $2.99 a gallon.
“You start thinking is there a difference in the gas mixture, I don't know,” says commuter Kathy Gregorek. “Is there a difference in the way the company does money?”
Gregorek purchased a tank of gas at a QT where the price was $2.45 a gallon, while around the corner on Piedmont Road there were two stations selling gasoline for over $2.70 a gallon.
Why?
Part of what determines how much a gas station charges you is the wholesale price they pay.
Think about what happens when you buy an airline ticket. The person sitting right next to you may have paid a drastically higher price for basically the same seat. The price depends on when you buy your ticket and what kind of deal you were able to find.
It’s a similar situation with gas stations. They negotiate contracts with suppliers when they purchase their fuel.
“Everybody has a different contract based on their overall volume, based on where they’re located, based on whether it’s a long-term or short-term contract,” says Jeff Lenard of the National Association of Convenience Stores.
Lenard also says that “branded” stations like BP, Chevron, or Shell get their gasoline from companies that provide some added perks like marketing. That adds to their cost, so you might pay a little more there than you would at an "unbranded" station like QT or Racetrack.
There is an upside for consumers.
“I'll go out of the way for a dime, no question about it,” says one gas customer.
Variety brings choices.
