Discrimination at the gas pumps?

Speedway on Rt 73 in Springboro gas is at $3.12 per gallon on 10/5/08

Gas at $3.12 a gallon on 10/05/08 on rt 73 in Springboro

We all know that the volatility of gas prices can’t possibly be because of “supply and demand” anymore than the compensation of a CEO has anything to do with the performance of a company.

With Exxon making profits of $4 billion in a month, it’s not because they just figured out how to make gas cheaper- it’s that they figured out how to make us pay more for it.

I’ve often thought that gas stations in poor areas charge more for gas than in wealthy areas- and today was no exception. In Springboro, along RT 73 gas was $3.12 a gallon.

In Dayton, at the corner of Wayne and Keowee it was $3.49 a gallon.

Gas at $3.49 a gallon on the corner of Wayne and Keowee on 10/5/08

Gas at $3.49 a gallon on the corner of Wayne and Keowee on 10/5/08

Any Congressmen looking for a way to help the “middle class” should be looking into price inequity among local stations, instead of worrying about the excise tax on wooden arrows.

Of course, that kind of logic doesn’t compute in Washington.

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19 Responses

  1. Larkin October 5, 2008 / 3:14 pm
    I’m not sure this is true, though certainly in this instance it looks that way. But the cheapest gas in the Dayton area is usually at Needmore and I-75, Needmore and North Dixie, and occasionally on East Third, none of which could be considered upscale neighborhoods. Unlike the Springboro stations, the Needmore stations are reliably on the lower end of the scale. I rarely buy gas without checking on this gas buddy site first. http://www.DaytonGasPrices.com/ Happy Motoring.

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  2. Mike October 5, 2008 / 8:06 pm
    I was told there was a station in Arcanum that was selling gas for $2.99/gallon late last week (Thur or Friday) and also super long lines as one would expect. I don’t know if it was a promotion or what caused this price drop. I was no where near the area to confirm or deny; a coworkers wife called to alert him.

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  3. pizzabill October 5, 2008 / 8:32 pm
    David,

    Great research on this. You have a real valid statistical sample here.

    It’s these kind of half-ass, running-off-at-the-mouth with no basis to the argument posts that often undermine your credibility. You don’t have to post every thought you have for public consumption.

    If you want to make people think and stimulate real discussion, then put some effort into your posts like you usually do.

    Discrimination that Congressmen should be looking into?? This post is load of crap. You’re much better than this.

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  4. David Esrati October 5, 2008 / 10:29 pm

    Sorry to disappoint you Bill, but, I’ve been watching the prices for a long time- and the prices are higher in the ‘hood.
    Also- back in the day- suburban stations still had free air, while inner city ones charged. There is a patter here. I guess I’d have to go pull records and chart them from gaspricewatch.com to prove my point, unfortunately, I have to work harder so Exxon mobile can make another $4 Billion in profits this month.

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  5. Drexel Dave October 5, 2008 / 11:17 pm
    That there is a concentrated level of businesses designed specifically to take advantage of, and perpetuate poverty in poor neighborhoods is not any kind of revelation. Ever hear of the poverty trap? Every one in the ‘hood knows it well.

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  6. Gene October 6, 2008 / 10:03 am
    PB is right. Just saying this is bullshit. If you have collected data over a period of time then show us it. Otherwise, you may as well call these owners racist, sexist and everything else under the sun. You have no proof, and in fact I have witnessed the OPPOSITE. And, btw, in the Sports section of YOUR DDN (sunday) even mentions that Needmore has the lowest prices. Now this may not be your hood, but the fact is that that is not a rich area, and in fact has a lot of poor people living and working in and around that area. You just make shit up.

    We know you background. Don’t make it so obvious. Not everything is a conspiracy. Typical for a typical UKWhat.

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  7. Gene October 6, 2008 / 3:45 pm
    decide for yourself:

    http://www.daytongasprices.com/

    looks like the lowest gas prices have something to do with being located in franklin/springboro: maybe they have different distributors? or are owned by a really generous company? the high prices are in the suburbs. JFC dave, you ever do any real investigation? Typical Typical Typical.

    David charges to much for his services. I ask one guy. That is my sample size. YOU OVER CHARGE PEOPLE DAVID. Typical.

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  8. Gene October 6, 2008 / 6:30 pm
    hey, i want to make shit up too.

    Gas stations charge more for cigarettes than carry-outs(non-gas) do.

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  9. TeresaLea October 6, 2008 / 8:43 pm
    I’ve seen this happening for a long time.

    Larkin mentions the 75/Needmore gas stations – and this is true. I lived a mile or so from there for 7 years and always drove the extra mile to get gas. At the corner of Main/Turner (Needmore) gas is consistently .20 more than at the 75/Needmore interchange.

    I’ve noticed you find the price gouging at neighborhood stations, rather than stations highly used by highway traffic. More often than not, lower to middle class neighborhoods.

    It’s not a myth and I certainly don’t need statistics to prove it –

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  10. In the 'burg October 7, 2008 / 6:55 am
    Retail gas prices make about as much sense as airfares.

    That’s because they aren’t set on a cost plus profit basis. If they were, they wouldn’t fluctuate so much. Instead, the chains that own stations set prices by “zone”.

    Unlike most businesses, the idea is not to sell more by having lower prices than the competition. Rather, the goal is to keep from being undersold. So they link their prices to nearby competitors and when one goes up, they all go up.

    I don’t know what formula they use to determine the base price in each zone, or if they even have a formula. It could just be totally arbitrary, which would allow for some discrimination. But it’s more likely that zone prices are based on complex factors which, again, make about as much sense as airfares.

    But just because you live in a particular zone doesn’t mean you buy your gas there. As TeresaLea pointed out, people can, and do, go out of their way to get lower prices. They also buy gas wherever they happen to be when they need it, and that could be nowhere near home. After all, having a car does make you mobile.

    So sticking it to one neighborhood while letting another neighborhood off easy would seem to be a pretty inefficient way for gas companies to “discriminate”, if that were their intention.

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  11. Gene October 7, 2008 / 11:32 am
    stop the presses……..as of 11:30 am today DAYTON had the lowest, so something may be wrong with Esrati’s and others complete BS notion of charging more in the hood. I love being smarter than David.

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  12. pizzabill October 7, 2008 / 5:50 pm
    Eureka!

    The statement that will allow one to win any discussion or debate: It’s not a myth and I don’t need statistics to prove it.

    I’ve also found a universal mathematical formula that will allow you to solve any problem or equation; it has a variable constant.

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  13. Gene October 7, 2008 / 11:10 pm
    I provided a link, and it seems to me this changes all the time, everywhere. It is all over the board. David is wrong and is too pig headed to admit it. This is what happens when your daddy always “hand held” you and told you that you were always right. JV game he brings, and once again exposed as a liberal with no common sense. He is going to run for office (hopefully) and I have put together one hell of a “David is Great” campaign ad. He lacks substance and intelligence. He is a nice guy though, but over charges for his services. JV should be his nickname.

    I bought gas in DT Dayton @ BP for $3.19. That was a lot less than in Kettering and Centerville. He just flat out lied.

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  14. David Esrati October 8, 2008 / 6:44 am

    Please ignore Gene, I do.

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  15. Gene October 8, 2008 / 10:21 am
    It pains you to know that I am right and you are wrong. JV

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  16. gene II October 8, 2008 / 11:18 pm
    Yes indeed Davey boy is wrong……….got gas today for $2.85 at the Krogers at Needmore….although dont you guys know how Dave rolls??? He s ALWAYS right (or left), although, if he receives any static he takes his blog and goes home.

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  17. Gene October 9, 2008 / 8:15 am
    gene II is smarter than Gene…….. LIFE IS GOOD!

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  18. Teri L October 10, 2008 / 4:53 pm
    I would not agree with this, David. Not across the board, anyway.

    In the ‘Heights we often have very good prices for gas, relatively speaking. Are we a ‘burb? Yes, but perhaps a bit more economically diverse than Springboro. And while you are correct, gas is consistently more expensive in the city of Dayton- and the Wayne and Keowee station is horrendous- it’s also consistently more expensive in Fairborn, and Englewood, and Tipp City, and Vandalia than in the ‘Heights.

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  19. TeresaLea October 12, 2008 / 8:45 pm
    That’s the thing Bill – I wasn’t trying to be right or win any discussion. It is just my opinion – and we all know what those are like.

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