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What is Keeping Fuel Prices So High in BCS?

4,785 Views | 49 Replies | Last: 16 hrs ago by LSCSN
RyanFromTexas
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Other adjacent markets have fallen much further and faster than in BCS, even with the recent arrival of Costco which is at $3.86 (Sam's is at $3.83). I'm using the warehouse clubs as examples because they are typically at the lowest end of an area's price range and help drive prices lower at other stations.

Costco in Cypress is $3.49
Costco in Pflugerville is $3.44
Sam's in Temple is $3.43
Sam's in Waco is $3.45
trouble
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AG
I'm guessing most of those other places sell a lot more fuel than BCS does.
CS78
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Its always been that way. Assumed it was either local taxes or location in the distribution chain.
LSCSN
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Hasnt always been this way. Waco was 40 cents cheaper on the whole last weekend. Used to be relatively the same.
BrazosWifi
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Last weekend, diesel in Crystal Beach (of all places) is 20-25 cents cheaper than BCS. It is aggravating.
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Stupe
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S
CS78 said:

Its always been that way. Assumed it was either local taxes or location in the distribution chain.
No it hasn't. The opposite is true.

Historically when I have been in Houston, Temple, Austin, or Waco and I knew that I had plenty of fuel to get home, I would always wait to get back to fill up.
jja79
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AG
I've been all over Spring, Tomball and Cypress this week and haven't seen gas that cheap anywhere.
JP76
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On Sunday gas was in the $3.60's in Somerville right by the lake. I paid $3.89 for it at Murphy in Bryan the same day. It's also about 20 cents cheaper a gallon towards snook at the intersection of Highway 50 and 60. As far as being cheaper out of town, I used to drive often to DFW from 2000 until about 2017 and it was always cheaper in Waco and in DFW than it was in BCS back then. Just looked on gas buddy and gas is $3.57 in Bedford right now at Murphy. Murphy in Bryan is currently $3.84 so not much has changed since then.
JP76
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Closer to the refineries ?
JP76
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$3.49 at Costco in Cypress
JP76
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I think it has to do with the student demand some too.
gibby03
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AG
They buy X amounts at a certain price and have to sell that before lowering the prices for the next Y amount right? So if our demand doesn't get us through C they can't drop the amount as fast? Could be totally wrong though.
deh40
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AG
gibby03 said:

They buy X amounts at a certain price and have to sell that before lowering the prices for the next Y amount right? So if our demand doesn't get us through C they can't drop the amount as fast? Could be totally wrong though.
Clearly not the way it works when the price is rising.
jello123
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Most stations here in Somerville are at $3.69 this morning. One station is $3.65
Gap
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AG
Warehouse clubs aren't a great example to use as a standard bearer for fuel in an area as you have already paid them an annual fee upfront. The cost compares to "regular" gas stations don't account for you having paid them that amount to subsidize the lower gas price.

However, the compare Costco-College Station to Costco-Cypress and regular gas station-Bryan to regular gas station-Waco still has me curious.
EMY92
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AG
It's likely due to having 30-40,000 drivers that use their parent's credit card and don't care what they pay for gas.

Then, you have the rest of the students that do care or don't drive, but they don't move the profit needle.
woodometer
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AG
Gas should be 2.10 a gallon and your concerned over a few cents? To answer your question B/CS has seemed to always be a little higher than the North Houston area. Probably a more competitive area and I'm sure their profits are slimmer but offset by higher volume.
chickencoupe16
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AG
Stupe said:

CS78 said:

Its always been that way. Assumed it was either local taxes or location in the distribution chain.
No it hasn't. The opposite is true.

Historically when I have been in Houston, Temple, Austin, or Waco and I knew that I had plenty of fuel to get home, I would always wait to get back to fill up.


I completely agree with this with regards to Waco and the Metroplex.
aggiepaintrain
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AG
$3.56 at Buccees
in Waller today
LSCSN
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Paid 3.36 in Waco this weekend. Still in the 3.70s and 3.80s here in BCS.
gibby03
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AG
Was in Dallas area last night and headed home today. Majority of places were in the $3.65 or lower range.
tn_ags
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AG
The students aren't here yet, so you can't blame it on student demand…yet. There is no good explanation other than intrinsic demand. People are paying (including me) and there is no pressure to reduce prices.
SQ5 ‘80
Brian Alg
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Does anyone know the prices at the racks?
Brian Alg

Brazos Coalition for Responsible Government
milner79
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Sunday morning: $3.75 at Costco in College Station, 3.75 at HEB ... already second-guessing my Costco membership ...

Sunday afternoon: $3.57 at BuCees in Bastrop.
nwspmp
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Was $3.38/gallon for 87 at the QT at Loop 340 and I-35 outside of Waco yesterday.
EMY92
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AG
I just filled up for $3.37/gal. in the Waco area.
techno-ag
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AG
3.65 at Brookshire's in Hearne today. 3.74 at Sam's.
cypress-ag
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AG
milner79 said:

Sunday morning: $3.75 at Costco in College Station, 3.75 at HEB ... already second-guessing my Costco membership ...

Sunday afternoon: $3.57 at BuCees in Bastrop.
Costco is my go To place in Cypress. I do use the CitiBank Costco membership that pays me 4% back on all gas purchase for the year. I can buy it anywhere and get that rebate. At the start of new year Costco rebates you back all the money and also pays for the Citibank membership fee. I've always noticed EVERYTHING in BCS seems t be about 8% more across the board.
doubledog
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deh40 said:

gibby03 said:

They buy X amounts at a certain price and have to sell that before lowering the prices for the next Y amount right? So if our demand doesn't get us through C they can't drop the amount as fast? Could be totally wrong though.
Clearly not the way it works when the price is rising.
The station owners (normally corps or LLC) do not have to keep prices high, it is just good business.. (for them)
GSS
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CEFCO on FM60 is $3.49/gal
agnerd
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AG
Saw an article on gas prices somewhere. Gist of it was that when prices are rising, stations raise prices immediately based on what they will be charged instead of what they paid for the gas already in their tanks. However, when prices fall, they generally want to slow-roll the reductions to keep prices as high as possible for as long as possible to maximize profits. Walmart/Kroger/HEB used to come in and disrupt that process by lowering prices when costs went down and forcing everyone else to lower prices too. However, Grocery Gas realized that they could slow-roll their reductions too, and make much bigger profits like the corner store stations. Gas has become a profitable enterprise for them too instead of just another way to get people into the stores. Bigger cities have more competition, and Waco needs to give people a reason to hop off 45 when passing through, so those locations can have cheaper prices.
trouble
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AG
35
LSCSN
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3.27 at the same spot in Waco I paid 3.36 on Saturday. Funny stuff. Still 3.73 at my go to in BCS.
Hornbeck
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Fuel in the greater B/CS Microplex is financed by the Bank of Momma and Daddy (tm) that's why gas is so high.
LSCSN
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BCS the highest in Texas, according to this...

https://www.kwtx.com/2022/08/11/texas-gas-prices-lowest-nation-under-4/
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