Update 1 - 2/27 Sutter Hill Gas Prices
Here is the first update to the original post from last week on Sutter Hill gas prices. Three more stations have been added to the survey (1 in Jackson, Martell, and Ione) from Amador County and two stations have been added from Folsom. I've added the Folsom stations so that we can see the consistent pump price difference between Chevron and Shell stations in Folsom versus Amador County. This move to compare same brand stations is in response to jbjbj's comment that branded stations are forced to purchase their gas from their brand's distributor rather than a wholesaler, which the Safeways and Mirastar/WalMarts can purchase from.
There still exists a 20-30 cent difference between the unbranded versus the branded stations. What is not as noticable is with the inclusion of the Folsom branded stations, comparison of like-branded stations still shows Amador County 10-15 higher than the Valley.I am still not convinced that branded stations have to purchase from their distributor but I cannot cite a reputable source to confirm.
Update: I believe the article I read that seems to imply that all gas comes from the same place and is the same gas until additives are introduced post-refinery was from the May 08, 2003 Sacramento News & Review.
5 comments:
Good update.
To site meself as a source: I work for a fuel wholesaler in sales/marketing, so I am telling you what I know as an "insider". I'm going to feed you information in pieces, since it will get more complex as we go on. That said, I do not rep gasoline fuels, so it's not my area of expertise, but I work in the same office as gas reps, and have rep'd gas in the past.
To answer your question about it all being the same, the answer is yes but no. In your area, there is a Valero refinery in Stockton, and it's a fairly safe bet that gas products in your area come from that Valero refinery. (For what it's worth, I believe that that refinery used to belong to Shell.)
Gas is what is called a fungible commodity. Meaning it all has to meet the same spec. The reason for this is due to the pipelines. There is nothing seperating the products once they are IN the pipe itself, so what goes in, has to be the same coming out.
So what separates "branded" from "unbranded"? Typically, it's detergents that are added to the fuel, meant to clean injectors and the like.
I'll do a "Part Deux" later on what it means to be branded.
-jbjbj
I found this interesting:
I checked the wholesale prices for 2/27, the last day on your chart, and the highest wholesale price was Shell, next highest was Chevron.
And yes, there is quite a jump from the lowest price to the highest.
-jbjbj
jbjbj-
Does the refinery that is near Vallejo, right past the Carquenez Bridge supply the Sacramento area also? This was the refinery that was out of commission a few years (2-3) because of a fire or something of that sort.
RL-
Sadly, "fire" and "refinery" go together like mop heads and condom hats. Vallejo could have supplied Sac, sure. But there are sites in Martinez and Benicia as well... One of the problems for the refineries in the bay area is that they make fuel for the Reno area, which is not CARB spec fuel.
I promised you a Part Dos, so here goes. With prices higher at a branded station, and gas being fungible, you might ask why anyone would buy gas there.
Well the detergents are there, for one. In most late model cars, the benefits of those detergents is negligible at best, but many people swear by them. Also, a branded station has to meet many criteria for cleanliness, maintenance, and compliance.
Another advantage of the majors is allocation. The majors have the individual stations usage well pegged and forecasted. They promise the supply to be there when it's needed, at the promised price, no shaky market volatility for you.
I'll do a part three on Zone pricing, if you'd like.
-jbjbj
jbjbj- Yep, love to hear about zone pricing, if you get a chance.
By the way, ran some errands in Sacramento and I noticed that the price of gas was around the mid-$2.80s to low-$2.90s. Costco was $2.74. So, it appears Safeway is undercutting the heck out of everyone, not only in Amador County, but in Sacramento County as well. I wonder how long this will last before Safeway starts moving prices upward.
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