Open in App
  • U.S.
  • Election
  • Newsletter
  • York Daily Record

    Gas prices are often higher in York County than other parts of PA. Here's why

    By Teresa Boeckel, York Daily Record,

    25 days ago

    Anyone who has driven outside of York County probably has noticed that it's cheaper to fill up at the pump in some other areas of the state.

    On Tuesday, the average price of regular gas in York County was $3.86 a gallon, according to AAA .

    In neighboring Lancaster County, the price was $3.74 a gallon, and in the Philadelphia suburbs, it was as low as $3.64 a gallon.

    Why is gas upwards of 22 cents a gallon cheaper within a two-hour drive?

    The answer isn't simple.

    https://img.particlenews.com/image.php?url=18V5Na_0tG6eiBz00

    Price at the pump boils down mostly to competition

    Each gas station sets its own price, AAA spokesperson Andrew Gross said.

    While gas stations pay a similar price for the fuel from the wholesaler, each one will have a different reason for deciding on how much to charge the consumer.

    A station might face stiff competition with a few others nearby and price the gas accordingly, he said. Or it might be the only game in town and can push the pain point.

    Other factors can include the real estate cost for the station, the number of employees it has, or its pairing with a convenience store that will draw in motorists to buy hot dogs and soda.

    Gas typically is cheaper at membership wholesale clubs because customers will wander inside to purchase something else, Gross said. On Tuesday, Sam's Club in Springettsbury Township was selling a regular gallon for $3.57.

    Much of the price at the pump simply boils down to competition, said Patrick De Haan, head of petroleum analysis for GasBuddy .

    York County has a few big brands in the market and lacks diversity in ownership, he said.

    Competition does vary by community, De Haan said. More affluent areas generally have more rivalry and have a price sensitivity.

    It's a variety of factors that fall under the umbrella of competition, including the diversity of ownership and the cost of doing business, he said.

    Transmission costs also play a role in higher prices

    Gas stations closer to big oil terminals and refineries also tend to sell fuel at cheaper prices.

    Distribution costs can be passed along to consumers who live farther inland, Gross said.

    Many of the refineries are closer to the Atlantic, De Haan said. Transmission pipelines get smaller the farther they travel away from the coast, and less competition exists in the amount of suppliers that bring the gasoline inland as well.

    De Haan compared it to a hose.

    "There's not as much gasoline coming out of the end of the hose because it's being siphoned off by areas upstream," he said.

    Less competition at both the wholesale and retail level can add up to subtle differences that are noticeable at the pump, De Haan said.

    States along the Gulf Coast often have much lower prices because they are close to the oil platforms and refineries, Gross said. On Tuesday, the average cost for a gallon of gas in Mississippi was $3.05, according to AAA.

    A network of pipelines makes it easy to move oil east of the Rocky Mountain range, but in the western states, much of the fuel has to be moved by truck or rail, Gross said.

    Drivers on the West Coast pay higher prices because the distribution costs are more expensive, he said. The average cost for a gallon of gas in California was $5.18 on Tuesday, according to AAA.

    Wawa might help to drive down prices locally

    Wawa, the Philadelphia-area convenience store chain, is moving into York County. It has three stores in the works: one in Dover Township , another in Penn Township and the most recent announcement in West Manchester Township .

    Experts say the competition may help to drive down prices in the area.

    If Wawa comes in and offers lower gas prices, what are the other stations going to do?

    "They need to compete because they don't want all their customers going to the new place, so that could help lower prices," Gross said.

    Regional differences in gas prices is not just a PA thing

    It's not just residents in Pennsylvania who see a difference in fuel prices depending on their travels.

    It's fairly common to see 10-, 20-, and 30-cent differences between cities in the same state, De Haan said.

    He recently was traveling through Illinois. In Chicago, a station was selling gas for $4.20 a gallon. The cost decreased as he drove south with the lowest price being $3.30.

    How drivers can save money at the gas pump

    Drivers who live in York County can't do much about the prices at the pump locally.

    However, they can search for stations that are selling fuel for less and patronize them, which can help to drive competition.

    GasBuddy was born because of the difference in prices that Americans were seeing across communities, De Haan said.

    GasBuddy as well as AAA have free tools, such as apps, that can help drivers find lower gas prices in their area. (The AAA app is free but membership is encouraged, Gross said.)

    It's not recommended to drive to the Philadelphia region just to get gas because it likely will not save money, Gross said.

    But if motorists are headed there for another reason, go ahead and fill up the tank.

    This article originally appeared on York Daily Record: Gas prices are often higher in York County than other parts of PA. Here's why

    Expand All
    Comments / 0
    Add a Comment
    YOU MAY ALSO LIKE
    Most Popular newsMost Popular

    Comments / 0