Gas prices remain steady for years even as oil prices fluctuate

Having lived in the city for about a year now, moving from College Station, it is expected that gas prices inside the 610 Loop of Houston will be more expensive. Higher rent, taxes, and a variety of other factors can play into it. But, just off the Loop, if you pay close attention, there are prices you have not seen since the early days of President Biden.

Look around off San Felipe, or int he River Oaks areas, and you will see prices hovering around or north of $4 a gallon. You head down to Pearland or a suburb, you can find prices barely above $3 a gallon. Again, sure you can attribute the higher prices to higher rents and taxes in the city, but that does not explain it all. At some point, it is considered overcharging.

Patrick DeHaan of GasBuddy says, while it might not be popular, they can gauge a bit because they run the show.

"If they want to charge way more than they pay, they can do so...but it does not mean anyone will come buy it," he says. "They can increase, but they do not have much discretion in how low they go."

But if they have free reign, you expect to see California-like gas prices of over $5 a gallon, or more. You would expect a bunch of stations one-upping one another on price. So, why don't they?

Mostly because other gas stations also exist.

"Most of the time, people will not pay an egregious price, and go down the street...there are so many gas stations, and so many prices that it keeps gas stations honest," he says. "Most Americans do not think purchasing gas is fun...and would like to spend less."

Indeed, purchasing gas might be one of the least fun, most annoying things we do in life. Mostly because it is never ending. You did it once this week, you will have to again next week, and the week after, for the rest of your life.

Major gas producers and oil producers got out of the gas station game years ago, and most stations now are privately owned 'mom and pop' kind of stores. If they have a Shell logo, or BP, they are likely in a contract with that company, and pay to use their branding.

As with anything in life, branding is crucial. You can buy a polo shirt at Walmart for $15, but if you slap a Lacoste logo on that same polo, and it suddenly becomes $65. Same goes with gas to an extent.

"Refineries produce both branded gasoline...which is for branded stations like BP or Shell...and the leftovers are unbranded gasoline, which can be bought by places like Costco or Buccees," he says. "That gasoline...you might be filling up at a Shell, BP, or Mobil...that gas, in theory, could be coming from the same refinery."

But even with competition to keep them honest, places like Shell have done phenomenal jobs pushing their 'premium additives,' to their gas. They are said to help your engine run cleaner, among other things. And while there is some truth to that, most of it is just good marketing.

"All gas has to meet federal standards in terms of additives. Some stations go beyond that...but it can be used as marketing," says DeHaan.

So, if the price you find seems like it is outrageous, that is because it probably is outrageous. DeHaan says you should look until you find somewhere you find reasonable.