Why does gas price vary from different gas stations companies?

I know that some gas price varies from place to place because of the area, but why are some gas prices different from company to company like Valero and Chevron? Chevron is usually more expensive and so is shell. Also, there are small has station names like Quick Stop or what looks to be like family owned gas stations. Is the more expensive it is the better quality it is?

16 Answers

  • zipper
    Lv 6
    3 weeks ago

    The higher price gas companies think their product is worth more. Most states require the gas to meant guilty levels, I buy what ever gas my Jeep runs better on.

  • 3 weeks ago

    They micromanage so they can get every penny possible... juggling appeal of price vs. what they think they can get based on convenience/location and the going-rate of the area. 

    Yeah... it's sickening... but "greed will destroy us all" is saying that was first said a very long time ago... and it's definitely happening.

  • 3 weeks ago

    stations set prices that they think is best for them.

  • 3 weeks ago

    The reason is the same as why milk prices vary from one grocery store to another.

    You do tend to pay for the brand name, even if the actual gas is the same.

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  • 3 weeks ago

    Supply and demand. The dealer decides the price based on how many gallons are being sold vs what the cost will be to replace inventory.

    Sometimes the price will be adjusted up or down several times per day depending on the direction of commute traffic, people will be willing to make a U-turn for only a few pennies per gallon.

  • Anonymous
    3 weeks ago

    It varies from area to area.  Where I live, Shell is one of the more expensive brands, in other locations I've heard Shell can be the "cheap" brand.  It's all marketing.

    Price is not indicative of quality.  There are specs for gasoline and all the gasoline comes out of the same tanks.  There are differences in detergents and additives but those still have to be approved by the EPA to meet certain requirements.


  • 3 weeks ago

    Although all gasoline is about the same the price is set by what additives are added for the brand and the location.  Gasoline diluted with ethanol is usually a bit cheaper but gets less MPG.

  • CB
    Lv 7
    3 weeks ago

    First and foremost not all gasoline is the same - there are gasoline tiers - Tier 1 has more detergent and other helpful additives than the lowest tier 3 (see source). Secondly brand recognition is purchased by marketing dollars those dollars are collected at the pumps. Third, free market enterprise often dictates the fuel prices and that is often dictated by number of options in a particular area. Along interstates prices are consistently higher than a few miles away. The mom-pop shops have much lower overhead so can offer their fuel for less money and often make up for the competitive prices by add on sales inside the shop.

  • JetDoc
    Lv 7
    3 weeks ago

    "Is the more expensive it is the better quality it is?" No! In fact, it's quite likely that the gasoline came from the exact same refinery, and the only real difference is the brand name on the pump.

    Just like any other retail product sold in the United States, gasoline retailers are free to set their own prices at whatever THEY think they can sell it for.

    In the area where I live, they recently opened a new Maverick station that typically sells fuel at discounted prices. The Love's and Flying J stores just down the street were forced to drop their gasoline prices by nearly 25 cents to compete.

  • 3 weeks ago

    It is called free enterprise. Owners can charge whatever they want, for a variety of reasons.

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