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Overpriced
updated: Jul 01, 2012, 10:01 PM

By Edhat Subscriber

Comments in order of when they were received | (reverse order)

COMMENT 293256P	2012-07-01 11:56 PM
students with their parents credit cards are the primary customer, its not their money thus they do not notice the price
COMMENT 293260P	2012-07-02 12:37 AM
256P hit it right on the head. The station at Hollister and Storke is the same - only this is UCSB students with credit cards.
COMMENT 293261	2012-07-02 06:19 AM
Because they can get away with it; pure and simple.
COMMENT 293265P	2012-07-02 06:35 AM
"get away with it" ??? This is not a communist dictatorship, not yet at any rate, they charge what the market will bare and are getting it. If you have the time, search for and find cheaper gas, but if you want the convenience of filling up at Hollister/Storke or wherever, then pay the price or move on
JOHNSANROQUE	2012-07-02 06:41 AM
Yes, 261 has the most accurate take on this--it's because they can. Also, proximity to the Freeway always seems to be a factor. I think the reasoning is that people needing gas get off 101 (or at an exit at any other controlled-access highway) and want a fast fill-up so that they can get on the Freeway again. They are willing to pay the high prices rather than driving around in an area they don't know, looking for a gas station. I'd also guess that real estate near those exits is more expensive than other locations, so the discount gas stations may have a hard time paying for it on their smaller profit margins. I hate paying those high prices, but I end up doing that when I'm on a road trip. The system works.
COMMENT 293272	2012-07-02 06:53 AM
lazy owner, station flagged with logo of one of world's highest income corporations...2 reasons theirs gas price is not competitive.
COMMENT 293273	2012-07-02 06:54 AM
yes they are doing what they can "get away with", and that has nothing to do with communisim it is just plain greed. Have you noticed when the prices were going up, the gas they had already paid for in the ground rose in price each day.
COMMENT 293275P	2012-07-02 07:03 AM
And, similarly, why does the Union station next to the freeway exit in Carpinteria charge about 10-20 cents less per gallon than stations up the highway in SB? Because they want to and must have found that lower prices bring in more business and, therefore, more profits. ...It's about choice and willing buyers.
COMMENT 293277	2012-07-02 07:10 AM
Charge what people are willing to pay. Duh!
COMMENT 293278	2012-07-02 07:11 AM
Greed.
COMMENT 293279	2012-07-02 07:13 AM
I've taken several road trips out of state over the last few years. Last month I headed for Arizona, and as soon as I crossed the state line the gas prices dropped almost a dollar a gallon. Santa Barbara is very often the highest gas price in the country, but high gas is a California thing. Where is the extra money going I wonder? (I can remember in 2001 I paid $1.01 per gallon in Brownsville Texas. Is there really that much less oil now, does it cost that much more to produce now, or is it the record oil company profits that we keep reading about? And we just go along with it all?)
COMMENT 293280	2012-07-02 07:16 AM
The answer is simple. Find a way to use less gas, then you won't spend so much. We all should be using less , its finite you know. And for everyone here stop the wining about gas!!!
COMMENT 293282	2012-07-02 07:20 AM
The Mobil station on Glen Annie & Calle Real is always more expensive than the competition. There never seems to be many customers buying gas. Their primary business is probably cigarettes and junk food to the high school kids.
COMMENT 293283P	2012-07-02 07:20 AM
261, you are absolutely correct, because they can. Even though I live very near that area I refuse to ever be gouged like that by them. BTW, does anyone know what is going on at the old Mobile site on Calle Real and Turnpike across from the Shell station?
JOHNSANROQUE	2012-07-02 07:37 AM
284: are you trying to say that gas stations near freeway and interstate exits don't have higher prices? What world do you drive in?
COMMENT 293289	2012-07-02 07:39 AM
279 asks where the extra money goes that we pay for gas in CA. The answer is taxes and additional processing for our special (environmentally friendly) gasoline that isn't used in other states.
FLICKA	2012-07-02 07:51 AM
Don Risdon's Union station in Carp is practically on the freeway, quick exit and on ramps within feet of the pumps. He recently got an award from Union for pumping the most gas of any station in CA. His workers often have to direct cars in line for gas. Also, Don has a car wash and wonderful mechanics.
COMMENT 293301P	2012-07-02 08:04 AM
So if you want to sell your house for $700K but I think it's worth only $400K, that makes you a "greedy capitalist" right? I suppose I would want the government to step in and force you to sell me your house at a more "equitable" rate then? You charge what the market will bare, and some stations have higher overhead than others and some just feel that the price is being paid by the majority of their customers so that price must be a good one. It's called the free market system and it works well when tried
COMMENT 293303	2012-07-02 08:11 AM
California gas is not the same as gas in the rest of the country. Extra detergents also aid in cleaning out valves and keeping carbon from building up in the intake. That is PART of the higher price. I'd hardly say our system is a free market. The government intervenes when lobbyists make it. That goes for both sides of the aisle.
COMMENT 293304	2012-07-02 08:15 AM
The station owners should always have the right to charge what they want for gas and we always have the right to shop elsewhere. I wouldn't know what that station charges, nor do I care, because I never go there.
COMMENT 293307	2012-07-02 08:29 AM
I've wondered about this also, since it bothers me that our children seem to be targeted by these higher prices. But, as with so many "answers" on Edhat, every one of these responses is speculative. Does anyone actually know what determines what stations charge and why sometimes stations across the street from each other have significantly different prices?
COMMENT 293310	2012-07-02 08:41 AM
The Chevron on Storke has been sticking it to everyone for years. You can travel 2 miles down Hollister to Fuel Depot and it's 60 cents less per gallon.
COMMENT 293311	2012-07-02 08:42 AM
307 - "Branded" gas stations like Shell, Chevron, Mobil, etc. are usually contractually obligated to buy their wholesale gas from a particular company supplier. The station operator then sets prices according to his/her needs. Other factors come into play such as 1) does the station do a big business in convenience foods, 2) does it have other revenue sources such as a car wash or tv ads over the pumps. Thus, stations across from each other may have profit margins that differ widely, thus different prices.
COMMENT 293312	2012-07-02 08:47 AM
They are probably using this business as a write off. Their goal being to lose money. They want you to go elsewhere to buy your gasoline. Why else would they do such a thing?
COMMENT 293317	2012-07-02 09:07 AM
JOHNSANROQUE - No, I'm not saying that gas stations that are located right at a freeway exit are not generally higher in price than ones further away from an offramp, what I am saying is that THAT particular Mobil station is no higher in price than any other Mobil station in the area, regardless of proximity to an offramp, and that if indeed proximity to the Turnpike offramp WERE a motivating factor for gas station owners to gauge customers then the two stations that are actually CLOSER than the Mobil station to the 101 offramp at Turnpike would ALSO have ridiculously high prices (which they don't). Therefore, your theory that the Turnpike Mobil is high in price simply because it is near the 101 is flawed.
COMMENT 293318P	2012-07-02 09:12 AM
I think it was Marketplace (APR radio program) discussed this once. Sometimes a high gas price in clear sight of a competing station is meant to discourage gas-only customers because the operator has a different focus such as it's repair operation.
COMMENT 293326	2012-07-02 09:18 AM
This is Santa Barbara. We pay more for everything. Everything. And yet incomes are the same or less than other cities in CA. Go figure?
COMMENT 293327	2012-07-02 09:18 AM
307: It probably largely has to do with the real estate. Lots of traffic through Storke and Hollister from Costco/Kmart shopping centers gives lots of opportunities to that Chevron. Shell on Fairview is in a prime spot, and charges accordingly (its a franchise). Vons across the street can drop the price considerably, as Vons makes most of its money through sales in the store. Go 2 exits down, and shell on Turnpike is one of the lowest in town (my go to spot).
COMMENT 293331	2012-07-02 09:23 AM
I've always attributed it to the customer base at this station and the one at Storke Road - College students with parents' credit cards, which would explain a lot. If you have an iPhone, use the "GasBuddy" app to find the best prices (both in town and on road trips). I have a diesel, and it helps find stations with diesel, as well.
COMMENT 293344	2012-07-02 09:37 AM
On average I use about 480 gallons per year, or 40 gallons per month. I keep this in mind when deciding which station to use. Even if a station is $0.25 per gallon higher than others, the most I will ever pay is $10 per month extra. I can live with that. I will never go out of the way to save a few pennies on a gallon of gas...it's just not worth it.
COMMENT 293346P	2012-07-02 09:38 AM
This is why we need a low-income gasoline subsidy, to help pay for gas for those who drive to Santa Barbara to look for work or hang out. The City should buy one of the gas stations on Milpas and offer taxpayer-subsidized gasoline to these needy folk who are just trying to get back on their wheels after a long drive.
COMMENT 293351	2012-07-02 09:54 AM
Simple business arithmetic will show you that increasing the price per gallon, even slightly, will result in greatly increased profits. Forget the overall price of the product. Concentrate on profit. For instance, if you make 25 cents per gallon profit, and you raise price by 25 cents, your profit DOUBLES.. OR, you can make the same amount with only 1/2 of the customers.
COMMENT 293353	2012-07-02 09:56 AM
Risdon's 76 at Santa Monica exit in Carp is the way to go. I fill up when ever I'm down there. Paid $3.67 for regular unleaded yesterday. Plus they always have good (Mallory) squeegees, clean soapy water and paper towels (unlike the 76 on Hollister in old town Goleta which has crappy, worn out squeegees, dirty, plain water and usually no paper towels).
COMMENT 293359	2012-07-02 10:07 AM
I agree with the 'because they can' and here's a couple of suggestions for alternatives Fuel Depot in Old Town Goleta - actually has 'gas garage sales' on the weekends I think the lowest I've seen in the last 6 weeks was 3.59 (yea, the pump adverts are annoying...) and the best for all things car related if you can fit into your drive is Don Risdon in Carp - gas, service, folks and mechanics AND one of the best carwashes in town. This is what a service station looks like! Everything and everyone here is TOPS without being glitzy and fancy schmancy....
COMMENT 293365	2012-07-02 10:11 AM
Asking several hundred Edhatters their opinions is going to get you several hundred opinions conjured up in speculation and some prejudice too depending on the political ax you might have to grind. We might feel it is just so but that doesn't make it a fact. Since not a single gas station operator has stepped up to give us an idea of how their business works all this is fantasy not fact.
COMMENT 293369	2012-07-02 10:28 AM
With the exception of NY/CT, California by far has the highest taxes/fees on gas. Looking at neighboring states that's over $0.15 per gallon more than Nevada and Oregon, and $0.30 per gallon more than Arizona. The CA gas tax is over $0.40 per gallon more than the state with the lowest gas tax (Alaska). Not that I would ever cross the border just for gas, but Mexico's gas price is about $1.25 per gallon less than California.
BILLY BOB	2012-07-02 10:31 AM
I love when someone asks a question on Edhat, as in this one "does anyone know..." and then 40+ people wade in showing that the answer to the question is, "no, we don't." What an amazing pooling of ignorance, rank opinion, axes to grind, and no light on the issue whatsoever!
COMMENT 293375	2012-07-02 10:35 AM
As a Carp resident who has been a longtime customer of Risdon's Unocal station it's a bit annoying/frustrating to have "our local secret" leak out. Ah well, such is the way of the world eh?
COMMENT 293381	2012-07-02 10:46 AM
Mobile at Turnpike is owned by a family that does not own the land or buildings - the landlord has them in a contract that skims a lot of cash right off of the top of every gallon sold. They make their profit on non-gasoline sales and I am sure they are looking forward to the day when they can buy the station outright and set their own prices on all of their merchandise.
LUCKY 777	2012-07-02 10:59 AM
Years ago I was called to be a juror at a Superior Court case, in which the franchisee of one of the gas stations on that corner was suing his corporate overlords over the fact that he had to pay more per gallon than the privately owned station contractor of the same brand located on Hollister. The lawyers went into great detail in Voir Dire asking if prospective jurors used trips out of town as an opportunity to fill up their tanks at lower prices. Turns out every station has a different contract, and their cost per gallon reflects the amount of "support" they get from the Corporation. It was truly pitiful, a local bumbling lawyer vs the full table of lawyers fielded by the MegaCorp. I did learn, however, that it is accepted policy to charge more per gallon to all classes of station in Santa Barbara than anywhere else in the country. AND that the gas at off-brand stations is often the dregs recycled off the bottoms of the tanks of the majors, containing sediment and impurities.
COMMENT 293398	2012-07-02 11:08 AM
Many of these answers are factors, taxes, CA vs. other states, increasing users of attached C-store/mechanic/car wash. And yes, students often are willing to pay more for convenience. Another one I learned when i managed a Chevron station, the local dealers must buy Chevron gas, and Chevron prices according to "micro-zones". The station at Storke and Hollister pays more per gallon than, for example, a Chevron in Santa Maria. Even though the gas is delivered from the LA/Long Beach area. But really, isn't EVERY price what the seller "can get away with"? That's the nature of economics, ideally the perfect price is found where the number of people willing to buy is just equal to the number of sellers.
AQUAHOLIC	2012-07-02 11:09 AM
Agree with BILLY BOB, and thank you LUCKY 777 for an informed, logical, factual, and excellent response!
RED CREEK	2012-07-02 11:52 AM
Re: Lucky 777's comment " I did learn, however, that it is accepted policy to charge more per gallon to all classes of station in Santa Barbara than anywhere else in the country." When the County of SB was fighting tankering in the channel in the late 80's, and new oil wells out there in general, we riled BIG OIL big time, especially with conditions for Las Flores Canyon processing plant (for example, they had to build a new school to replace the nearby one, come up with money to clean up old well heads etc). At that time EXXON promised publicly to make SB County's gas the priciest in the country as a payback (just as they angrily pulled the tankers from our channel and gave the finger literally to the County Board of Supervisors). And that is not speculation or hearsay. I was there. Interestingly enough after that ominous threat, 3 months later the EXXON Valdez crashed on the rocks at Prince William Sound in Alaska and the rest is history. We pay the price for our environmental policies, unfortunately, that's how corporations (now people) play the game.
COMMENT 293422	2012-07-02 11:57 AM
@293265P All you did was put it in different words. You should read Adam Smith ... he abhorred the merchant class.
COMMENT 293425	2012-07-02 12:03 PM
Because it works.
COMMENT 293440	2012-07-02 12:48 PM
Yes, I remember reading in the local papers about the suit of the Mobil operator at Glen Annie & Calle Real. He wanted to lower his prices but couldn't. I don't think it has anything to do with students and credit cards.
COMMENT 293441	2012-07-02 12:54 PM
I'm a regular customer at Glen Annie Mobil. I like that there are rarely any lines. Their pumps and extractors are faster and easier to use. I never go into the store there - nothing of interest to me. It's just convenient and yes, you pay more. I work over 70 hours a week -convenience wins every time.
COMMENT 293442	2012-07-02 12:58 PM
I work in the lending industry and see all types of incomes. Local owners of gas stations are not rich. They barely get by. No reason for me to lie- I hate paying as well. But it's the oil/rent that is expensive- not the 10 cents the property owner is making each fill up.
COMMENT 293448	2012-07-02 01:25 PM
The gas station at Storke and Hollister is just reaming the UCSB crowd a new one. Discusting that they charge so much more than all of the others.
SHARON93111	2012-07-02 01:59 PM
On the other side of the coin...Fuel Depot lowers their prices every Sunday by 10 cents. Last Sunday we paid 3.69.
COMMENT 293488	2012-07-02 03:08 PM
As an interesting aside, I once spoke to the man filling the tanks at the Vons station. I wondered how their gas was (at the time) so much cheaper than the competition. He said that all gas comes from a very few refineries...I believe most of the stations in town get their gas from the same one in Bakersfield? The difference is purely the bottle of additives that they toss in, i.e. "Techron" at Chevron, etc. The only reason for the price discrepancy is similar to car sales, advertising kickbacks and "Corporate support" money...otherwise it's all the same stuff.
COMMENT 293491	2012-07-02 03:21 PM
I don't buy gas at risdons because his personality is not very nice.
COMMENT 293496	2012-07-02 03:39 PM
Paying extra for brand name gas is as silly as paying extra for a 5-lb bag of brand name sugar.
COMMENT 293544P	2012-07-02 05:35 PM
@ Redcreek: Just to clarify, it was not Exxon in Las Flores Canyon that paid for the new school. It was Chevron and their plant was at Mariposa Reina in Gaviota, adjacent to the old Vista del Mar school. I was there throughout the process, and thought that fact should be clarified.
COMMENT 293587	2012-07-02 07:27 PM
Do your wallet a favor and go to Shell on Walnut, less than 1/2 mile away. Easily save $ 8 on a tank of gas for excellent quality stuff. Been busy there lately, so folks are paying attention
COMMENT 293677	2012-07-03 09:22 AM
About two years ago diesel was higher priced than gasoline, now it's lower. Why is that?

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