MEMPHIS, Tenn. — The gas prices are putting a dent in our pockets. Unfortunately, it is going to keep increasing.
No one gas station is the same. Each has their own business and corporate model. That is why the price at one station can be so different from another.
“You get variations in prices by station. You get variations in prices by location. You get variation in prices because some groups like Kroger subsidize gas prices for people who shopped there,” said Dr. John Gnuschke, 901 Economics President.
Dr. Gnuschke said location matters when it comes to gas prices.
“Prices are lower in the suburban areas, and they’re highest in the core area,” said Dr. Gnuschke.
You also have to consider the brand such as Exxon, Shell or BP.
“Those all reflect corporate decisions. That price variation is nothing new,” said Dr. Gnuschke.
What if the variations are all high like right now? At what point does it become price gouging?
“Probably at no point does it really become price gouging. As long as you have the option to choose one station, one gas station over another, it's your choice,” said Gnuschke.
Plus, we have to remember oil is a global market. The prices we are seeing now are actually low compared to the rest of the world.
The Mid-South is also pretty lucky. Our gas prices are lower than other areas in the U.S.
“Gas prices tend to be cheaper in Memphis and that's the good news,” said Dr. Gnuschke. “We do have a processor by Presidents Island, and that certainly helps.”
Many economists predict we will keep seeing these increases. They believe it may not be until early summer that we’ll see prices go back down.
Dr. Gnuschke said before the Russia-Ukraine conflict, the global average cost on a barrel was around $90. Now, it is $110. He said many economists are hopeful that the price will decrease by the end of the year to $70-$80 a barrel.