A question about Citgo and gas prices...

[hughee99]

Last night, i was visiting family members in northern MA, and I drove by about 15 gas stations through the course of my trip. Having read a good bit about oil profits and Hugo Chavez over the last few months I decided to pay a little more attention to the gas prices. The 3rd most expensive gas (I'm only talking "regular" for this discussion) was the Mobil station just of the highway at 3.05 a gallon, but further from the highway, there were 2 other Mobil stations at 2.95. Shell was at about 2.92. What I was most surprised to see was that Citgo was at 3.15, right near a Hess at 2.93. The other Citgo I passed was at 3.11. My understanding is that the Citgo corporation is a us subsidiary of the Venezuela state-owned oil company.

Now I realize that there could be several reasons why Citgo is more expensive, that have nothing to do with corporate policy from the top. I also realize that my observations may not be reflective of the pricing nationally. For such a dramatic price difference, though, I have to ask... If Mobil, Shell, and the other companies are gouging us at 2.90-3.05 a gallon, is Citgo gouging us even more? I see a good bit of support here on DU for Citgo, but it seems like they may be the worst as far as the gouging. Am I missing something here? Are my observations not reflective of price comparisons nationally?

[T Wolf]

1. My experience with Citgo

over the past year is that it depends on the area. Much travel this summer has reinforced that observation.

While they are not always the cheapest, they are never the most expensive. For a couple of cents a gallon, I choose to send my petrol dollars to them rather than Exxon/Mobile or any of the others. After all, what is 3-5 cents out of more than $3 a gallon?

[hughee99]

3. Provided the exception in my area...

If their prices are basically in line with the other companies around the country, wouldn't they be gouging us about the same as everyone else? It just seem to me like while Citgo may be doing things that are more socially responsible with their profits, they're not screwing me any less than the other companies. With all the support I've seen for Citgo, I figured I must be missing something since it seems to be avoided by most DUers during any discussion of price gouging.

[skids]

4. Your area may be related to a new corporate policy.

Citgo only imports/refines so much gas -- when their stations want more than what they produce, they have to go buy it on the open market from other refiners. They decided they aren't going to do that anymore. Individual owners may find themselves among the branches that no longer can buy as much gas as they want to sell, and may be supplimenting by buying from other suppliers themselves.

As far as whether they are gouging, gouging is the least of oil company's sins -- I judge the companies more by whether they actively run propaganda against global warming, or "adopt and suffocate" renewable energy technologies, etc.

Really as soon as I'm financially able I'll be getting off gas entirely.

[Coyote_Bandit]

2. Citgo gas

is priced competively here. Sometimes a bit lower than competitors. SOmetimes a bit higher. Not unreasonably so in either case.