The data shows that there is a wide range of prices in most markets, even in many states where the average price is now well over $4.
Most stations try to stay just below that mark, even if it means charging $3,999, which is the most common price per gallon of regular gasoline at US gas stations on Tuesday, according to the Oil Price Information Service, which tracks AAA prices.
Nearly 60,000 gas stations nationwide, or about 42%, managed to keep their prices below the $4/gallon mark. about 9,000 of these stations sell gas for less than $3.75 a gallon.
Most gas stations with much cheaper gas are located on a wide strip in the center of the country, from North Dakota to Texas, where in no state the average prices exceed $3.85.
But cheaper gas can still be found even in some states with higher prices for those willing to look for it.
OPIS data show 3% of Nevada’s gas stations charge less than $4, although the average price there is $4.67 per gallon, making it the third most expensive state in the country – behind only California and Hawaii.
The same low percentage of gas stations in Illinois, with an average of $4.43 per gallon, have gasoline under $4, while about 9% of gas stations in Vermont are below the benchmark, albeit averaging $4.18. In Virginia, where the state average is $4.10, one in four stations charges less than $4.
The average price both nationally and within each state can be skewed by stations with significantly higher prices, even if these dealers pump much less gasoline than stations with lower prices.
It’s not uncommon to find small, independent gas stations that sell a relatively limited amount of gasoline at prices above local averages, said Patrick De Haan, head of oil analysis at the GasBuddy app, which allows drivers to search for gas stations based on prices.
“I myself am sitting here and scratching the back of my head,” De Haan said. “Instead of having a lower price and more volume, they are content to make more money on every sale. They usually have customers who may be price insensitive.”
But a small independent gas station may only sell 80,000 gallons a month or less. According to Tom Kloza, global head of energy analysis at OPIS, one Costco or Sam’s Club company can pump 10 times or more.
And aside from the advantages big retailers like Costco or Sam’s Club can have by luring customers with low gas prices, they usually make money selling gas, even if they charge 30 cents a gallon less than the local market. Last week, Costco’s (COST) chief financial officer Richard Galanti told analysts that its gasoline margins have risen due to recent price increases and now stand at about $20 billion in Costco’s annual sales.
Drivers become more price-conscious as gas prices rise, certainly. They can sit in their car for 30 minutes to buy cheap gas at Costco, even if saving 30 cents a gallon saves them only $5 if they buy about 16 gallons.
“People don’t think about how much their time is worth. It’s the effect of low prices on someone.” – De Haan said.
The national average is also somewhat skewed by prices in California, where the state average is $5.44 per gallon due to tighter environmental regulations and retail and wholesale taxes and gas levies. which is much higher than anywhere else in the country.
There are about 9,400 gas stations in California. The national average would be about 10 cents a gallon lower than the current price of $4.17 if Golden State gas stations were excluded from the calculation.