While there is a big difference in the price of gasoline in a State such as Mississippi as compared to California, we do find that within States themselves, that gasoline prices are pretty much in accordance with one another, unless a particular county has a much lower taxation rate as compared to an adjoining county on the gasoline that it sells. In other words, gas prices are pretty much the same throughout the locale that a driver lives at, with apparently the only true exceptions being at grocery stores, that provide reward points for customers that spend a certain amount of money on groceries, or wholesale stores that have a membership fee and thereby lower their gas price as not only a courtesy to their members but also as a way to keep members satisfied that their membership is of value.
The question that needs to be asked is the fact that oil is extracted by numerous oil companies within the United States, and while it is true that there are mega oil companies that pretty much dominate the oil industry, it doesn’t seem to make much sense that the costs of extracting and refining that oil, no matter whether it is Chevron or Exxon/Mobil does not make much of a difference, for as represented at the end of the day the price of that gasoline is essentially the same, give or take a few pennies per gallon.
This would presuppose for this to be the case that the costs to get gasoline are exactly the same for each oil company, which is doubtful – and what isn’t been admitted is this probably reflects that oil companies, the refiners, and ultimately the way that gasoline is priced to consumer suffers from some degree of collusion from the big players, or else we would definitely have a low-cost leader, because the extracting and refining of oil, cannot always be essentially the same, from one oil company to another. In other words, big oil appears to have too much sway in how gasoline is priced to the consumer, and thereby it is the consumer who ends up having to pay more money for gasoline, which means more profit for those in the oil business.
Indeed, when we take a look at products which consumers have to have and in which there is true competition, there is much more price discrepancy between the products so being purchased in most of those cases, but we don’t find that to be true with gasoline, and while a few pennies here and there does make a small difference, it doesn’t reflect that the cost of providing gasoline to the consumer should have a low-cost leader, just like there are stores that are considered to be discount stores. The fact that this doesn’t exist should be an area of concern to the governance of this nation, and the fact that it is not would seem to reflect that the governance of this nation has been essentially captured by Big Oil, thereby hurting the pocketbooks of everyday Americans.