Stockton gas station lowers prices, calls on state to pressure bigger companies to do the same

Stockton gas station owner helps ease the pain at the pump

STOCKTON — A Stockton gas station owner took it upon himself to keep prices low. At Ernie's General Store on East Waterloo Road, the cash price for a gallon of gas is $3.99.

Ernie Giannecchini, the owner of Ernie's General Store, said that this is his way of turning the table on big oil companies and saving some pain at the pump for his customers.

When compared to other gas stations across the street, the divide is clear. The Chevron on E. Waterloo Road was at $4.69 a gallon on Thursday, August 1.

Giannecchini said that he wants big oil companies to notice his price difference.

In an interview you'll see only on CBS13, the California Energy Commission's director of Petroleum Market Oversight—the nation's first gas price watchdog—touched on findings during his first year on the job, including these big price gaps.

"At this point, the cost differential is really hard to explain and the CEC in the past has asked the branded gasoline sellers to substantiate their claims that their gasoline is better, and they've declined to do so," Tai Milder said of the difference in prices from one gas station to the next.

An oil industry expert explained it this way.

"If you have a branded station, people are going to expect a certain level of cleanliness or lighting, or you know the food and drinks they might find in the station," said Kevin Slagle, a spokesperson with the Western States Petroleum Association. "Or maybe it's an easier right-hand turn than it is making a left across traffic or something. So you know, a lot of what we see in the different costs has to do with where those branded stations are, the real estate costs."

Giannecchini said that the state needs to press down harder on the name-brand companies.

"People try to control the prices, but they aren't working on watching them. It's more of a review and they're not punishing the companies as they said," Giannecchini said. "So what's the reason not to have higher gas prices at these major companies? There's no incentive to lower their prices."

Giannecchini said that he isn't losing money unless a small number of people come to buy gas because he buys it in big quantities. He hopes people can continue to buy gas locally instead of always going to the name-brand gas stations.

He added that the gas in his pumps is not any lower quality because much of the gas in California comes from the same refineries.

Giannecchini has owned and operated his general store for 45 years. The cash price for his gas, according to Gasbuddy.com, is the cheapest in the zip code. He said he would keep it at that price point for as long as he could.

"Some come from quite a distance sometimes just to try and get their gas here," he said.

One of those customers was Lupe Rocha.

"I come all the way from the Bay Area to come to Ernie's to fill up. It is one of the cheapest around," he said.

On Thanksgiving 2022, Giannecchini lowered his gas prices to the same $3.99 price point—then a 70-cent drop—as a thank you to customers.

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