28 February 2024
OSAGE CITY (KSNT) – Why is gas more expensive across the street?
Today in Osage City, two gas stations positioned on opposite sides of town, roughly 2500 feet apart, had simultaneously the most expensive and close to the cheapest gas in Kansas.
Today, gas at Casey’s in Osage City hit $3.64 per gallon. Meanwhile at BP on the other side of town, gas costs $2.88 for a $0.66 difference.
According to gas price authority GasBuddy, on Monday the cheapest gas in the state was $2.65 per gallon and the most expensive was $3.54 per gallon, a $0.89 difference.
A report from KTLA cites the main reasons for disparities as margins and competition. According to the report, a large factor in how prices are determined comes down to the wholesaler’s price.
“Chevron is priced differently than Exxon, which is priced differently than Shell. Some are more expensive than others, and the customer pays the added cost because gas stations don’t make huge profits on each gallon sold,” the report said.
Gas stations that have convenience stores tend to make more than half their earnings on items sold inside. Because of this, a gas station may be able to lower gas prices accordingly, according to the report.
“There are numerous reasons why one gas station might sell gas for cheaper than its neighbor,” the report said. “Still, ultimately it comes down to a complicated equation for business owners who want to maximize their profits while testing what the consumer will tolerate and prioritize.”
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