Disparity in diesel fuel prices?

[_Hyde]

Anyone have any ideas as to why there is such a spread in diesel fuel prices? I live in the DFW Texas area and with a short bit of driving I can see a range of up to $. 25/g at times. I don't ever recall gas prices being all over the board like diesel is, nor do I pay much attention to gas prices now so it could be the same and don't know it. One thing I have noticed is that I tend to see higher diesel prices where there is a lot of construction taking place, particularly home construction. My theory on this is that there are a number employees in the construction trade driving diesel trucks, pickups or larger, that belong to their employers thus they are not paying for fuel out of their pockets and just stop at the first place they see diesel. However, I have seen a difference of as much $. 15/g between 2 stations across the street from each other. This was in Mesa, AZ several years ago and was at an intersection with lights both ways so access to one or the other was not a significant issue. I would really like to talk with someone who determines what fuel pricing will be at this station vs. that station and what factors are involved in pricing.



Hyde

 

[WBusa]

Local disparities in diesel fuel pricing have me constantly scratching my head, too. I think the main factors are:

1. Local competition (or lack of)

2. Dumb business practices ("hey, we're not selling enough diesel... we gotta raise the price!")

3. Occasionally, the need to clear old inventory.



There's a stretch of state hwy I travel that provides examples of all three. Two stations across the street from each other right by the interstate are always trying to undercut each other by a penny, so their prices are the lowest for miles around (currently $2. 18). About 5 miles further up the state route there's an old Gulf that sees almost no business, and the owner seems to think his best bet is to sell for 15 cents higher than anybody else (currently $2. 30); go figger. Then, back in December, a nearby Texaco was selling at $1. 80 when everybody else was up around $2. 20. I figgered he was stuck with a batch of summer fuel, or dirty fuel, or water-in-fuel (its a real low-volume station), so I resisted the temptation.