Gas Price Leaves Drivers Fuming
Although Texas is one of eight states that has the lowest prices per gallon on average when compared to other states in the U.S. according to the American Automobile Association (AAA), a few people are complaining about high gas prices in Olney.
AAA has listed the average gas price per gallon in TX between $1.89 to $2.04 per gallon. In 2008, AAA reports the highest reported gas price in TX was $3.985. Currently, the highest average gas price per gallon is on the West Coast at $2.52 - $3.27. Currently, the average gas price for Young County is $2.16 per gallon.
Low gas prices have not affected Olney yet. However, research of gas prices in the surrounding areas around Olney reveals that Archer city, Newcastle and Graham appear to have lower prices. The surrounding towns seem to have less expensive gas prices on average of 10-20 cents compared to the rates in Olney. Allsups in Olney has gas listed at $2.19 per gallon which is just slightly above the average.
With the cyclical increases and decreases in gas, it may be hard to believe that the gas vendors in Olney are not trying price gouge. There are many factors that contribute to the price of a gallon of gas. Some factors include the difficulty with getting fuel to the station, when the contract for fuel was made and the length of time the vendor is located info a specific fuel price with the gas supplier.
The contractual agreements between the vendor and the supplier may be considered as a double-sided coin of good and bad. If fuel prices increased and the vendor is locked into a long-term contract, gas will be cheaper at the gas station longer. On the other hand, if the vendor is locked into a short-term contract, patrons will see an increase in prices sooner. However, Olney’s location and other factors applicable to smaller markets, buy gas as needed and forgo the future contracting of gas.
The Allsups Corporation representative did not respond to the request for comment related to the aforesaid data in this article.
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