Expert says gas price gouging nearly impossible in current market
BOSTON - A Gulf gas station at the corner of Massachusetts and Columbus Avenues was charging $5.99 per gallon of regular gas for drivers using credit cards Tuesday. "It shocked me, literally. I was like aaah! I'm glad we're riding the train," said Charlotte Farabee, who was visiting from Kansas City.
More than an hour's drive south in Taunton, drivers paid a lot less at the pump. The price on the sign at Canaan Fuels said $4.73 per gallon, but this day it was discounted even more. "It's cheaper on Tuesday," said Arthur Gamache as he filled up his truck. "They drop it five cents."
"We're always the lowest and the cheapest in this area," said owner Sam Canaan. He explained he can afford to charge less for gas because inexpensive prices lure more people inside his shop, and that's where his profits are. "Lottery, soda, water, this time of the year ice, Blue Rhino propane. We have like a 30-40% profit margins on those items," he said.
The big difference in numbers raises questions about whether certain gas stations are over-charging drivers who have limited options. But Boston University energy analyst Frederic Brunel said price gouging is nearly impossible in the current conditions.
"This is a highly competitive market," he said. "If a station was trying to price gouge, there would be a correcting mechanism from the other stations to undermine the price gouging and use that as a way to drive more customers to their station."