Why gas prices are different per state

Waiting Falcon · #1 04/07/12, 10:48 AM

Taxes!

USA Gasoline Tax Map - Grand Rapids Gas Prices

plowjockey · #2 04/07/12, 10:10 PM

People used to wonder, why gas was always about six cents a gallon "cheaper", in WY, verses CO.

Actually, the real fuel price was a little higher, but the gas tax was 8 cents a gallon less, in WY.

Paquebot · #3 04/07/12, 11:24 PM

Those are just the state taxes. There was a long discussion about that on WGN radio yesterday. In the Chicago area there are some places where the taxes are over 80¢. Residents buy just enough to get to another area which may be 25¢ cheaper. There was one of the suburbs which went so high that every station eventually went out of business and now there are none.

Martin

Bearfootfarm · #4 04/08/12, 01:25 AM

There are also delivery charges depending how near a pipeline or terminal port you're located

ninny · #5 04/08/12, 07:35 AM

Different blends for different parts of the country also...

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ronbre · #6 04/08/12, 08:16 AM

as ninny said formulas, different blends..like say Chicago pays 25 C more per gallon cause of the forumlations they require for their area.

Haven · #7 04/08/12, 08:22 AM

Yesterday I drove about 1 hour to a very rural area.

Gas started out at 3.74 near me and got progressively more expensive the more rural I got. The last and most rural station I passed was up to 3.90.

**highlands** · #8 04/08/12, 08:37 AM

Location as in how far the petrol has to be trucked also makes a big difference. It costs money to transport it. If the petrol trucks have to travel further then they burn more fuel and must charge the station owner more for the delivery and then the station owner passes the cost on to the customer. This is reality. We live a long ways from the refineries so we pay a lot more than other areas for the same petroleum products. *shrug*

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arabian knight · #9 04/08/12, 09:23 AM

Quote:

Originally Posted by ronbre

as ninny said formulas, different blends..like say Chicago pays 25 C more per gallon cause of the forumlations they require for their area.

Yes that is correct. Up to 18 different blends of gasoline is being used throughout the country.
And oh yes don;t forget to thank the EPA tonight in your nightly prayers for that.

Paquebot · #10 04/08/12, 09:38 AM

One thing that was pointed out is that Chicago should have the cheapest because of the low cost of crude oil. Most comes from Canada with minimal delivery expenses. In Chicago, it's 1.1 environmental tax, 5¢ city tax, 6¢ county tax, 18.4¢ federal tax, 19¢ state tax, and tops it off with 10% state sales tax. If you pay $4 per gallon, it figures out to around 90¢ tax per gallon. Only 7 states charge a sales tax on gas and Illinois is the highest.

Martin

ninny · #11 04/08/12, 09:44 AM

Quote:

Originally Posted by Paquebot

One thing that was pointed out is that Chicago should have the cheapest because of the low cost of crude oil. Most comes from Canada with minimal delivery expenses. In Chicago, it's 1.1 environmental tax, 5¢ city tax, 6¢ county tax, 18.4¢ federal tax, 19¢ state tax, and tops it off with 10% state sales tax. If you pay $4 per gallon, it figures out to around 90¢ tax per gallon. Only 7 states charge a sales tax on gas and Illinois is the highest.

Martin

If locatioin and availability of oil were the criteria for price, we should be the cheapest in the country. Right here in my area there are oil wells everywhere and 5 refineries within about a 50 mile range, 3 of which are right here in town.

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edcopp · #12 04/08/12, 12:19 PM

Americans are addicted to driving. So it is because "they" can. Don't expect relief any time soon. Rehab might help.

bluemoonluck · #13 04/08/12, 12:24 PM

They are also different within the same town, depending upon where the gas station is located. I've heard that the gas companies charge the stations higher amounts if they're in certain locations, and lower amounts if they're in other locations.

For example, the gas station right before the I-95 ramp here in VA is a full 20 cents higher per gallon than the gas station half a block down on the other side of the road.

Gas is also cheaper where I am than it is the further north (towards DC) you go. I drove up to MD a while back, and the gas prices slowly climbed the further north I drove

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Location location!

VERN in IL · #14 04/08/12, 12:28 PM

Quote:

Originally Posted by Paquebot

One thing that was pointed out is that Chicago should have the cheapest because of the low cost of crude oil. Most comes from Canada with minimal delivery expenses. In Chicago, it's 1.1 environmental tax, 5¢ city tax, 6¢ county tax, 18.4¢ federal tax, 19¢ state tax, and tops it off with 10% state sales tax. If you pay $4 per gallon, it figures out to around 90¢ tax per gallon. Only 7 states charge a sales tax on gas and Illinois is the highest.

Martin

and it SHOULD BE HIGHER! They are about to approve fees for state parks, why new fees? lets just increase the taxes on the existing tax?

I say a $12 tax on a gallon of gas, if it gets us out of the ---- hole and the corrupt politicians gets burned at the stake.

Lynx · #15 04/08/12, 12:52 PM

Demand
Transportation
Taxes
Overhead
Make the differences per state

plowjockey · #16 04/08/12, 02:47 PM

Quote:

Originally Posted by VERN in IL

and it SHOULD BE HIGHER! They are about to approve fees for state parks, why new fees? lets just increase the taxes on the existing tax?

I say a $12 tax on a gallon of gas, if it gets us out of the ---- hole and the corrupt politicians gets burned at the stake.

IL, is broke, like many other states and needs more money.

So, instead of charging more for a particular service, such as state parks, for those who use them, it's better to add more tax to gasoline, that everybody has to buy?

You do realize, that you will also be paying $12 more per gallon?

Also, adding more taxes, without cutting spending, is a complete wasted effort and will accomplish nothing, IMO.

HermitJohn · #17 04/08/12, 03:12 PM

And dont forget the speculator tax. wealthy have gotta get their cut. And the totally unnecessary bone headed war mongering tax. Sabre rattling towards a big oil producer ups your price though usually oil companies and speculators that profit from it.

Paquebot · #18 04/08/12, 03:15 PM

Quote:

Originally Posted by ninny

If locatioin and availability of oil were the criteria for price, we should be the cheapest in the country. Right here in my area there are oil wells everywhere and 5 refineries within about a 50 mile range, 3 of which are right here in town.

.

Different kind of crude makes a difference in refining process and costs. When you hear prices of crude, Texas and Canadian crude prices are often mentioned along with Persian Gulf crude and each is different. Differences in crude right now are as much as $20 or more per barrel.

Martin