Price of gas update...
Oct 30th 2008, 4:34 pm
#226
Not here much
Joined: Jan 2005
Location: Highland Park, NJ
Posts: 2,452
Re: Price of gas update...
This is an interesting chart for comparisons over time between states: http://www.gasbuddy.com/gb_retail_price_chart.aspx
It seems to show that most of the time NJ is below OH, but not right now.
It seems to show that most of the time NJ is below OH, but not right now.
Go Bucks!
Oct 30th 2008, 6:02 pm
#229
BE Site Lead
Joined: Aug 2004
Location: MA, USA
Posts: 92,170
Re: Price of gas update...
I have no idea. Neil's theory is that Ohio is important in the election. My theory is that we have a lot competition amongst stations (they're everywhere), cheap real estate, lots of farms & longer commutes to work means they sell more so they can afford to offer it a lower price, we're lucky, and Midwesterners are the nicest people in the U.S. so we get a break.
Nov 1st 2008, 5:04 am
#230
Forum Regular
Joined: May 2008
Posts: 43
Re: Price of gas update...
The stated excise rate is just part of it.
Some states charge sales tax on petrol, some don't.
E.g. wholesale price before state taxes on petrol is $1.80/gallon (figure plucked from thin air). Add on the standard $0.12/gallon station markup and you're looking at $1.92/gallon before taxes (and before transportation...). Say you have state A that charges sales tax at 6% but has a $0.10/gallon excise... the price would thus be something like $2.14/gallon inclusive of all taxes. State B charges a $0.20/gal excise but exempts motor fuel from sales tax... the price would then be $2.12/gallon, even though B has a higher excise tax. Obviously, if prices decline, state A's prices will decline faster and at some point (wholesale prices of roughly $1.45/gallon by my math), A will have lower prices.
Then there's transportation costs: those states that have lower fuel prices after removing state excise taxes are by and large those that are on the coasts or on the Great Lakes, because they get the petrol off the tankers (or refine it themselves). Stations in inland states tend to have greater transport costs, though pipelines and such can ameliorate this a bit. In general, more urban states tend to have lower pre-tax prices (due to there being enough volume to generate competition, allow for efficient transport options, and spread the fixed costs over more customers; the tendency for urban areas to be on the water doesn't hurt).
So a rural inland state like West Virginia should tend to see rather high fuel prices.
It's always amazed me how cheap NJ can be, especially when you consider that self-serve is outlawed (which simultaneously increases costs and precludes the model that most modern petrol station operators use of running the station as a means to get you into the convenience store)....
Some states charge sales tax on petrol, some don't.
E.g. wholesale price before state taxes on petrol is $1.80/gallon (figure plucked from thin air). Add on the standard $0.12/gallon station markup and you're looking at $1.92/gallon before taxes (and before transportation...). Say you have state A that charges sales tax at 6% but has a $0.10/gallon excise... the price would thus be something like $2.14/gallon inclusive of all taxes. State B charges a $0.20/gal excise but exempts motor fuel from sales tax... the price would then be $2.12/gallon, even though B has a higher excise tax. Obviously, if prices decline, state A's prices will decline faster and at some point (wholesale prices of roughly $1.45/gallon by my math), A will have lower prices.
Then there's transportation costs: those states that have lower fuel prices after removing state excise taxes are by and large those that are on the coasts or on the Great Lakes, because they get the petrol off the tankers (or refine it themselves). Stations in inland states tend to have greater transport costs, though pipelines and such can ameliorate this a bit. In general, more urban states tend to have lower pre-tax prices (due to there being enough volume to generate competition, allow for efficient transport options, and spread the fixed costs over more customers; the tendency for urban areas to be on the water doesn't hurt).
So a rural inland state like West Virginia should tend to see rather high fuel prices.
It's always amazed me how cheap NJ can be, especially when you consider that self-serve is outlawed (which simultaneously increases costs and precludes the model that most modern petrol station operators use of running the station as a means to get you into the convenience store)....
Nov 1st 2008, 12:50 pm
#231
Queen of my house
Joined: Aug 2007
Location: Ohio
Posts: 5,043
Nov 1st 2008, 12:56 pm
#232
Queen of my house
Joined: Aug 2007
Location: Ohio
Posts: 5,043
Re: Price of gas update...
The stated excise rate is just part of it.
Some states charge sales tax on petrol, some don't.
E.g. wholesale price before state taxes on petrol is $1.80/gallon (figure plucked from thin air). Add on the standard $0.12/gallon station markup and you're looking at $1.92/gallon before taxes (and before transportation...). Say you have state A that charges sales tax at 6% but has a $0.10/gallon excise... the price would thus be something like $2.14/gallon inclusive of all taxes. State B charges a $0.20/gal excise but exempts motor fuel from sales tax... the price would then be $2.12/gallon, even though B has a higher excise tax. Obviously, if prices decline, state A's prices will decline faster and at some point (wholesale prices of roughly $1.45/gallon by my math), A will have lower prices.
Then there's transportation costs: those states that have lower fuel prices after removing state excise taxes are by and large those that are on the coasts or on the Great Lakes, because they get the petrol off the tankers (or refine it themselves). Stations in inland states tend to have greater transport costs, though pipelines and such can ameliorate this a bit. In general, more urban states tend to have lower pre-tax prices (due to there being enough volume to generate competition, allow for efficient transport options, and spread the fixed costs over more customers; the tendency for urban areas to be on the water doesn't hurt).
So a rural inland state like West Virginia should tend to see rather high fuel prices.
It's always amazed me how cheap NJ can be, especially when you consider that self-serve is outlawed (which simultaneously increases costs and precludes the model that most modern petrol station operators use of running the station as a means to get you into the convenience store)....
Some states charge sales tax on petrol, some don't.
E.g. wholesale price before state taxes on petrol is $1.80/gallon (figure plucked from thin air). Add on the standard $0.12/gallon station markup and you're looking at $1.92/gallon before taxes (and before transportation...). Say you have state A that charges sales tax at 6% but has a $0.10/gallon excise... the price would thus be something like $2.14/gallon inclusive of all taxes. State B charges a $0.20/gal excise but exempts motor fuel from sales tax... the price would then be $2.12/gallon, even though B has a higher excise tax. Obviously, if prices decline, state A's prices will decline faster and at some point (wholesale prices of roughly $1.45/gallon by my math), A will have lower prices.
Then there's transportation costs: those states that have lower fuel prices after removing state excise taxes are by and large those that are on the coasts or on the Great Lakes, because they get the petrol off the tankers (or refine it themselves). Stations in inland states tend to have greater transport costs, though pipelines and such can ameliorate this a bit. In general, more urban states tend to have lower pre-tax prices (due to there being enough volume to generate competition, allow for efficient transport options, and spread the fixed costs over more customers; the tendency for urban areas to be on the water doesn't hurt).
So a rural inland state like West Virginia should tend to see rather high fuel prices.
It's always amazed me how cheap NJ can be, especially when you consider that self-serve is outlawed (which simultaneously increases costs and precludes the model that most modern petrol station operators use of running the station as a means to get you into the convenience store)....
Nov 1st 2008, 9:38 pm
#233
Sursum corda
Joined: Sep 2002
Location: Richmond Hill, GA USA
Posts: 38,860
Nov 1st 2008, 9:39 pm
#234
BE Site Lead
Joined: Aug 2004
Location: MA, USA
Posts: 92,170
Re: Price of gas update...
Well I almost crashed when I swerved into the new Gulf station in the next town that had it way lower than anyone else by miles at $2.35G which was handy as I was running on fumes, but next door was $2.45 and across the street was $2.65
Nov 2nd 2008, 2:39 pm
#235
Queen of my house
Joined: Aug 2007
Location: Ohio
Posts: 5,043
Re: Price of gas update...
$1.91 in area but 1.96 in my neighborhood this morning. Northern Cincinnati has it for $1.84 at a station close to the Ikea store.
Last edited by tamms_1965; Nov 2nd 2008 at 2:42 pm.
Nov 2nd 2008, 2:45 pm
#236
Lost in BE Cyberspace
Joined: Oct 2003
Posts: 22,105
Nov 2nd 2008, 2:53 pm
#237
Queen of my house
Joined: Aug 2007
Location: Ohio
Posts: 5,043
Re: Price of gas update...
I know, I thought I'd never see it that low again. I hate to say this but it doesn't effect DH and I much (even though we drive gas guzzlers) because we live so close to our jobs and do not do much driving.
Nov 2nd 2008, 3:10 pm
#238
Lost in BE Cyberspace
Joined: Oct 2003
Posts: 22,105
Re: Price of gas update...
We were just talking about how much it was costing to fill up his very economical car just a few months ago.....
Nov 2nd 2008, 4:13 pm
#239
Sursum corda
Joined: Sep 2002
Location: Richmond Hill, GA USA
Posts: 38,860
Re: Price of gas update...
Now it's 300 miles and it's a big difference. Question is, how long will it last? 
