Gas for $1.99 a gallon around here.

I get the state-to-state tax differences.

What's got me head scratching is that gas is ~75 cents more per gallon right in the big hairy middle of the Permian Basin, within 50 miles of the Alon refinery than it is here in DFW.

Same state.
Ostensibly far more supply there.
Ostensibly far shorter transportation.
Ostensibly less demand.

Makes no sense. What's the factor(s) I'm missing?

 

Greed....because they can.

 

That would require every gas station in town to conspire and prop up the price. If even one undercuts the rest, they'll all have to drop to match. One of them will surely undercut the original undercutter, only to be underundercut by someone else.

Eventually, everyone will price as competitively as profitably possible.

TL/DR : free market

 

I think it starts way up the line than the gas station, they don't make much, at least around here.

 

Point of comparison, gas is $4.20 Cad ($3.15 USD) her in Ontario right now.

 

Filled up for $ 1.80 a gallon this morning. Yeah, rewards point took $ .70 off but still, $ 1.80, baby!

 

NE DFW just now...

No points involved.

 

We popped up to $2.45 a week or two ago, now down to $2.11 today, for reg 87.

 

Just heard crude is under $50 / barrel.

 

$2.10 in NeGa. Last week was under 2 in SC.