It’s something drivers see often, neighboring gas stations with noticeably different prices. According to a Denver economics professor, there are several factors behind that reason.
“About 95% of the gas that we use is produced in United States. Only 5% is imported, but that 5% is a large number because we are a large consumer of gasoline,” MSU Denver professor Kishore Kulkarni said.
Kulkarni told Denver7 when the international price of gasoline goes up, the domestic price goes up too.
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One of the big factors leading to noticeable price differences among gas stations comes before the gas ever reaches the pump. Different stations may buy from different wholesalers, with different costs to get that fuel there whether it’s coming locally or internationally.
“If the gas is produced locally, then obviously the cost is much lower. They’re getting gas from wholesalers who have different costs for different companies, and that’s one of the reasons why they charge different prices,” Kulkarni added…