With gas prices pushing higher again, California continues to preserve its pole position as the state with the most expensive pump prices.
As oil prices have heated up this summer along with the war with Iran, there is more than a $2-per-gallon difference between average prices in the Golden State and in the least expensive state for gas, Indiana. Cherry-pick pump prices and the gap is even more shocking. Some people in L.A. are dishing out $7 per gallon, while in Indiana, the most affordable gas stations charge about $3.
Short of driving cross-country or moving to the Midwest, there is little the average Californian can do to avoid this, but the vast variation in prices holds hints about other ways to save.
All the pumps in Los Angeles are dealing with the same local wealth, costs, taxes, infrastructure and regulations that lead to higher prices, but some still find ways to offer much better deals. The cheapest stations were charging just under $5 a gallon this week, while the most expensive ones were charging about $7. That’s more than 25% in potential savings.
One of the best deals in Los Angeles County was in Temple City, where local gas chain Berri Brothers was charging $4.89 for a gallon.
Local resident Raymond Cesar stopped at the new Berri Brothers on Baldwin Avenue on his way home from work because Berri Brothers had a better deal than his workplace, Ralphs.
“It’s cheaper” than Ralphs, he said, filling up his Mitsubishi Galant.
The Berri family operates 12 gas stations in California, with 11 locations in Southern California and one in Fresno.
In February, it added the Temple City gas station located on Baldwin Avenue to the chain, and its low gas prices have earned a steady flow of local customers. Its prices are marked down to attract new customers, but owner Tarek Wazne, a member of the Berri family, says each of its locations is usually among the five cheapest in its area.
Experts say there is a wide spectrum of gas prices in any given city, or even on a single corner, for a variety of reasons.
Gas stations connected to places such as Costco, Sam’s Club and Safeway are sometimes cheaper because those retailers don’t depend on gas to fuel their profits. Some chains, like Berri, accept lower profits to stand out from the big chains.
Meanwhile, stations near wealthier neighborhoods, downtown areas, highway on-ramps and airports are sometimes more expensive.
“Community to community in California, there is a lot of differences in what a business will need to charge for gas because of their overhead expenses,” said Patrick De Haan, an analyst at gas price website GasBuddy. “The rent may be higher, or the cost of labor may be higher, in one area than another. It creates a buying opportunity in some places and higher prices in others.”
Sometimes the difference in prices comes down to when the gas station brought in its latest truckload of gas.
“In a volatile environment, they can pay up to 80 cents higher or lower than each other,” De Haan said. “Maybe they bought on the right day from the right supplier.”
Checking online which locations have the best rates can save drivers 10% to 20% on gas.
Online resources like the American Automobile Assn.’s fuel prices page, which shows national averages as well as gas prices by county, can inform drivers of the standard going rate. According to AAA, the average price in California was $5.65 per gallon on Thursday. The national average was $4.10, and the average in Indiana was $3.57.
GasBuddy compiles a daily list of the ten cheapest gas stations by city and offers an interactive map that allows you to search up prices at every station.
Google Maps also has a feature where you can check the cost of fuel at your local gas station. Its latest figures showed two locations in West Hollywood charging more than $7.10 per gallon.
Los Angeles commuter Phillip Lee monitors prices in town for the best possible deals. He often fills up his Honda Accord at Sam’s Club, but this week picked Berri Brothers.
“Gas here is usually 10 cents cheaper” than at Sam’s Club, he said.
Wazne, one of Berri Brothers’ owners, said using low prices to keep a constant flow of cost-conscious customers helps his business by inflating footfall to the stands’ convenience stores.
Still, Berri Brothers has been hit hard by the increase in gas prices from suppliers due to the ongoing conflict in Iran that is keeping the Strait of Hormuz closed and oil costs high.
“We are working off of very thin margins,” Wazne said. “We are barely paying our bills just to keep our business, especially in a time like this.”