Thursday, October 27, 2011

Why is Gas Always Higher in Mexico Than in Fulton or Columbia?

That's the question I asked Ron Leone, Executive Director of the Missouri Petroleum Marketers and Convenience Store Association.

With him using what I'll call political doublespeak, I felt like I really didn't get an answer.

Ron Leone, as well as Tom May with MFA Oil in an email seemed to answer the question with -

"Because there is no competition we can charge higher prices in Mexico".

And using his own words, he says consumers should not expect gas prices to be similar from market area to market area (as in comparing St. Louis gas prices to Columbia) - but he also says "in the same market area they should be similar." Isn't mid-Missouri one market area? (That would include Columbia, Fulton and Mexico).

That reeks of price fixing to me. Listen to my interview with Ron Leone at MexicoMaxim.com and tell me what you think. Thanks. -GL

Edit: This evening GasBuddy.com is showing the same price for gas in Columbia, Fulton and Kingdom City ($3.199/gallon) while Mexico is at $3.269/gallon.

And it seems reasonable to me to expect gas to be higher along the interstate highway through mid-Missouri compared to other areas not near the highway - but such is not the case in Missouri. (Although that IS usually the case in most larger cities, like St. Louis)

So it goes.

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