I have resisted the temptation to get involved, but after
several weeks of tracking prices and listening to complaints, I do declare,
well … something’s rotten in Tuscarawas
County.
Yep, it’s true that gasoline prices in the Dover-New
Philadelphia area, if not in all of Tuscarawas
County, are unreasonably
high for no apparent reason.
I am not breaking new ground here by declaring that prices
are higher in good old T-County. I swear I used to write about the unreasonable
gasoline prices in Tuscarawas
County back when I
controlled a particular editorial page. You know, back in the days before Gas
Buddy.com.
Gas Buddy.com, if you don’t know, is a website that tracks
gasoline prices with the help of those people who are visiting gasoline
stations around the country. The prices are updated constantly and the site
provides a list of stations offering the cheapest gasoline in town no matter
where you are.
Gas Buddy is now a popular iPhone app and one that I rely on
quite frequently. I’ve been tracking prices in Dover-New Philadelphia, Canton, Cambridge and South Bend, Ind.,
as part of my gasoline price “investigation.”
Why South Bend?
I don’t know. I usually need gas there when I’m driving to Chicago, so I just thought I’d throw it in. South Bend isn’t cheap
either, although I found prices there cheaper than in T-County on more than one
occasion and not just at one of those rogue gas stations that have funny names.
Anyway, on Monday, regular gas was priced at $3.90 (I’m
rounding to the nearest penny) at the Speedway stations
in Dover, while one could find it for $3.65 just
about anywhere in Canton.
In Cambridge,
at the Pilot near I-70, you could buy regular unleaded for $3.60.
Pilot, whose owner just bought the Cleveland Browns,
obviously is trying to get in good graces with the local fans, which is OK by
me.
South Bend prices were
similar to Dover
prices, so don’t worry about having to drive there for a deal.
So, I hunted for answers to the question, “Why are gas
prices higher in some cities than in others?” and these are the answers I came
up with:
--Wiki Answers.com: “Because of the amount of oil available
around that area. If it’s, for example, near a huge amount of oil, the price
could be cheaper than near areas where there are no oil refineries. It also may
depend on the gas station’s view on what they want to price their oil.”
--Curiosity.com (Science Channel): “In the U.S., some areas are known as
gasoline-market islands. These regions include California
and the Midwest, and have unique clean-burning
requirements for gasoline. Not all refineries can produce these special fuels.
The prices rise due to limited supply and high demand, and can spike in the
case of an issue at the refinery or a pipeline problem.”
--U.S.
Energy Information Administration: “Pump prices are often highest in locations
with few gasoline stations. Even stations located close together may have
different traffic patterns, rents, and sources of supply that influence their
pricing. Drivers face a trade-off between stations with high prices and the inconvenience
of driving further to find a station with lower prices.”
And you thought the Internet was a wealth of information.
A long time ago, I asked a friend in the fuel business why the
oil companies raised gasoline prices for no apparent reason.
“Because they can,” he said.
That was it. There was nothing else. No elaboration.
“Because they can.”
Of course. Why didn’t I think of that?
I tend to believe that simple explanation rather than the
more complicated ones involving econometrics – defined as the “unification of
economics, mathematics, and statistics” – which are used to help price
commodities such as fuel and are mined routinely from your use of credit and
debit cards. Surprise!
I suppose if all the folks in Dover and New Philadelphia are
irked enough they could make phone calls to the attorney general, alleging the
oil companies are engaging in price fixing in the area. That might help,
although the oil companies, no doubt, will bring out the big guns – the econometrics
guys – who will bore the judge/jury to death with a lot of numbers.
Or local motorists could conserve enough fuel to allow them
to drive to Canton
to fill up at a cheaper rate minus, of course, the cost of the gasoline to get
there.
Bottom line? I think you know.
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