Golo
go georgia tech: blog

go georgia tech's blog


gas matrix- why not?

Published Oct. 28, 2008

 I recently fueled up in Tarboro for $2.39 a gallon. Yet in RM and Greenville I pay $2.69 to 2.79 a gallon... WHY??? How can cities only a few miles apart be so vastly different on the price of fuel?

 So here's my idea- (worthless I know) 

 Why not  make EVERY state, EVERY station have the same gas prices? Set up a matrix that will follow the cost of the barrell. For example- if a barrel costs $100.00 you could look over and see national pricing is $2.47 a gallon. if the barrell drops- so does the pricing- or vice versus. 

This would not only keep the oil companies in check but stop unfair price increases from stations. This would also keep "instate" dollars in the actual state. Keeping people who live next to the state borders from jumping over into another state, fueling and heading back to their homestate. 

Why not do this and would it work?



18 Comments


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Price controls were tried once before and the results were not good. I can not explain the differential. I did hear one interview where a person said that different counties within the state have different formulas and that impacted the price. I think there is also some price differential based on income in a given area. But that should not translate to such a large price swing.

If the gas price (cost) to each station was the same then it might work. But I don't like the idea of our government controlling prices. They scr#w up enough as it is.....

"GT-It wont work because every state has a different tax rate per gallon. I would think the wholesale cost is pretty much the same for all station nationwide, its the in-state tax rate that is causing the big differences in pricing."

Not really. You have to factor transportation costs into the mix. It costs more to lug gas up mountains than it does to transport it across flat plains. As distance from point sources (i.e. pipeline junctions) increases, the cost of the fuel itself to the distributor (i.e. the gas station) increases.

GT-It wont work because every state has a different tax rate per gallon. I would think the wholesale cost is pretty much the same for all station nationwide, its the in-state tax rate that is causing the big differences in pricing.

"then push your legislators to allow off-shore drilling for oil and natural gas "

Crude obtained from those sites is much more expensive to obtain than crude obtained from current sources. It's not profitable to obtain unless the benchmark for crude remains pretty high, which is why oil companies are not taking advantage of the offshore leases they already hold. Giving them more leases isn't going to result in production when those leases don't offer a profitable gain for those doing the drilling.

the thing is they would still find a way to charge an arm and a leg...the middle man ALWAYS gets the sour deal....

Gas in Va Beach area is going for 2.01 a gallon....so why is it 2.79 in Wake Forest???

In Knightdale, there are some stations at $2.39 yet in Clayton and Garner I pay $2.69. Go figure.

rationality - better yet. Let's take the people who make more then $250k (Customer A) and when they come to fill up their gas tanks, have them go around to the other customers and see what they make a year. If it is less then 250k then make customer A give them money to buy gas!

Sure it would make it so that everyone would need to carry around last year's tax return, but hey we are all about sharing the wealth these days...right?

Yeah, let's have government tell us what prices need to be for gas. Why just gas? Why not gum, shoes, movie tickets, Wii games, dog food, cars? Let's get government even more intrusively into trade markets! Yeah, that will be great! The same people who ruined the financial markets can rule and dictate our trade! That can't possibly be bad. Then they can jack up prices when they want to raise taxes.

But wait, let's have a 'progressive' charge for gas. If you make $100,000+, you pay $6.50/gal; $75K-$99K, $5.50; $40K-$74K, 2.50; and below $40K the gas station will pay you.

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