So many things go into setting prices on gas. The market, how much retailers buy the gas at wholesale prices and competition. First, let's talk about why Lubbock has some of the most expensive gas in the state.
NewsChannel 11 spoke to Charles Bolton, owner of Bolton's Oil and Gas company. He told us that the Lubbock retailers are paying a higher wholesaler price for their gas than retailers in bigger cities. Another driving factor in the cost of gas, you may recall the Bolton's on 80th and Slide being at 2.93 a gallon, and then all of a sudden it shot up over three bucks. The reason for that was competition determining the cost.
"One of our competitors just dropped the price. When we saw it, we dropped the price. When that competitor went back up, we followed him back up. We lost money on that fuel that we sold, but it's either that or let your customers go somewhere else," said Bolton.
Bolton says every wholesaler sells their gas to retailers at different prices, which is why you see prices higher or lower all across the country. So the person you see selling gas at 3.09 cents a gallon may not be price gouging you, but charging you the most he can and still make a profit to run his business.
|Texas Gas Prices|