Gasoline prices vary from station to station, even within the same area. Why does competition not bring all of those prices closer together? And how can you compare the options near you?
1. What factors affect gas prices
Gas prices are determined by a wide variety of factors, from the cost of crude oil to local taxes and more. Crude oil is the primary source for gasoline, so higher crude-oil prices can raise gas prices. Other key factors include refining costs and transportation expenses associated with getting the fuel from refineries to retail outlets. The amount of taxes and fees imposed on gasoline can also affect the price.
California's fuel requirements, taxes and supply conditions help explain its prices. The US Energy Information Administration's explanation of regional price differences, checked November 2, 2026, covers these factors.
2. Why are gas prices so different between stations in the same area
Nearby stations may have different rent, wages, delivery costs and sales volumes. Local competition matters too. A station in a convenient location may charge more than one a little farther away. There is no single rule that the station closest to a refinery will have the lowest pump price.
Also, if they offer other services/products, they may purposely lower the margin on gas and try to make it back from other sales.
3. How can you find the best deal on gasoline
The best way to find the lowest price is to shop around. Gas prices vary from station to station and even from day to day, so it pays to keep your eyes peeled for good deals. You might also consider signing up for gas reward programs offered by certain stations, as they may provide special discounts.
GasBuddy provides nearby station price listings. Check the reported time and confirm the price at the pump.
Costco is another option to compare where available. Include membership costs, the journey and any wait when deciding whether a lower pump price saves you money; there is no fixed discount to assume.
If you want to get a deeper dive into the gas price in the US, listen to this Odd Lots podcast "What Actually Determines the Price of a Gallon of Gas."