Why are gas prices different everywhere?

Gas prices often differ because of three broad factors: taxes, fuel blends and margins. In mid-February 2021, gas prices averaged $2.51 per gallon, according to AAA.

Why is gas more expensive in urban areas?

Gas station costs of ownership and operation are higher in cities which means the owners must command a higher price for the gasoline and other products. The price differences reflect higher taxation rates in the cities and a higher cost of doing business for the gas station owners.

Where does gas cost the most?

At six U.S. dollars per gallon or more, gasoline is particularly expensive in Italy, the Netherlands, and Norway. While a surge in fuel prices has sparked protests among parts of the French population, car drivers in India and Pakistan feel the most pain at the pump.

Why are gas prices higher in poor neighborhoods?

We find that prices do not vary greatly with neighborhood racial composition, but that prices are higher in poor neighborhoods. The remaining differential likely reflects price discrimination in response to lower competition and/or more inelastic demand in poor neighborhoods.

Why is gas cheaper in other states?

Gasoline prices vary over time and among states and regions. In addition to differences in state and local taxes, other factors contribute to regional differences in gasoline prices, including distance from supply, supply disruptions, and retail competition and operating costs.

Why is gas cheaper in the suburbs?

Competition lowers costs Among the factors that might dampen prices, according to the researchers, is a rural or relatively less urban location, the presence of a carwash or convenience store, ownership by nearby supermarkets, and proximity to other gas stations, which indicates market competition.

Why are gas prices cheaper in rural areas?

Gas may be cheaper in rural areas because overhead costs such as rent and taxes are lower than in the city. That type of gas can cost 10 to 20 cents more per gallon, dealers said.

Where is gas cheapest in the world?

Venezuela boasts the lowest cost of gasoline on our list. Citizens pay just pennies per gallon, enjoying generous subsidies from President Hugo Chavez. Like Iran and Saudi Arabia, oil-rich Venezuela has stitched affordable gas into its national fabric.