BOSTON – Many California drivers are likely overpaying for their weekly fill-ups.
In a recent study, Boston-based GasBuddy analyzed the average differences between the 5% highest- and lowest-priced gas stations in more than 450 metro areas from January to June 2016. California was home to 15 of the top 20 markets with the biggest price spreads.
The biggest spread was in Hanford-Corcoran, Calif., which had a $1.26 gulf between the most and least expensive gas stations during this six-month time period. This represents a potential savings of about $63 per month for drivers who had frequented the least-expensive site. The next four biggest spreads were in San Bernardino ($1.01), Bakersfield (99 cents), San Francisco (92 cents) and Santa Barbara (88 cents).
Patrick DeHaan, GasBuddy senior petroleum analyst, told CSPDailyNews that California’s dominance is due partly to the volatility of its wholesale gas prices.
“Being on a ‘petro island,’ they experience quite a ride at the wholesale level,” said DeHaan. “Aside from that, there are many affluent areas in Southern California in which motorists are less price-sensitive, leading stations to be less competitive. Fuel taxes also vary from area to area, adding to the wide variance as well.”
In its analysis, GasBuddy found that cities with the highest spreads were often sprawling markets with a large highway running through them, and they typically had a large “warehouse” retailer.
“The good news for drivers in these areas is that there are opportunities to save money if you know where to look and choose to shop wisely,” said DeHaan.
The median spread between the highest and lowest gas prices in the 456 metro areas in GasBuddy’s database was 27.5 cents.
For regions beyond the West Coast, Chicago had the biggest spread in the Midwest at 70 cents. Washington, D.C., led in the southern region at 86 cents, while in the Northeast, White Plains, N.Y., was in front with 68 cents between the lowest- and highest-priced gas stations.
Among the largest U.S. cities, Los Angeles had the biggest gap between the lowest- and highest-priced stations at 86 cents, followed by San Diego (84 cents); Chicago; San Jose, Calif. (70 cents); and New York and Phoenix, both at 54 cents.
Click here for the complete GasBuddy Pump Price Spread Report.
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