Why are gas prices in Chicago one of the highest, if not the highest -in the nation..?

Question

Why are gas prices in Chicago one of the highest, if not the highest -in the nation..?

Answer 1

There seems to be no logical answer why gas prices are as they are in different areas. I live in Florida, not far from the Tampa ports, where oil is shipped in. Our gas is higher here than I recently paid in Ga., SC, and all the way to PA!

Answer 2

Blame your state legislatures, they imposed a double digit tax hike that went into affect this year.

Answer 3

well I found that your highest gas price is at :

CITGO - 1004 S DesPlaines St & Taylor St ( & I-90 & 94)

3.49 per gallon

The cheapest - SPEEDWAY

1004 E 9th St & Loch Ln

2.99 per gallon

And just for your info where I live up north in Michigan:

Beaver Island Marina

3.92 gallon

Cheapest - Admiral - 2.78 gallon

Answer 4

Large metro areas have higher costs than smaller cities and rural areas.  Pay is typically higher, taxes and real estate costs are usually way over average.  Then you have the issue of formulation.  Every area has to comply with EPA clean Air Act standards and large cities usually have to reformulate.  Chicago is one of my areas and we do have reformulated gas, which is a bit more expensive to produce.

There's also the issue of demand.  I know that my company alone sells about 1 million gallons of gasoline a day in Chicago.  That's a lot of gasoline and there are a lot of people involved with making sure it's there when you pull up to the pump.  This can sometimes involve a lot of effort, including diverting gasoline from other markets.  

Retail strategies play a role as well.  One oil company may decide they want to focus on increasing Chicagoland volumes, so they drop prices to stimulate sales at their stations.  Everyone naturally follows suit and you've got a price war going.  No focus, no price war, everyone pays a little more...

Finally, you can thank your local and state politicians for the tax cost of your gas.  I know Cook county is higher than counties immediately south, because one of my stations is just across the county line and people go out of their way to buy the cheaper gas.

It all adds up to make the price what it is in your market.

That being said, there is something going on in the upper midwest, because prices are off the hook up there right now.  Ihaven't checked, but the refineries and terminals are probably getting ready to change over to winter blend, which causes a spike.  Normally it's a more widespread spike, though.

Answer 5

Chicago is not the highest in the nation.  Generally Hawaii and California are the two highest states.

Answer 6

Sorry, but I guess it's your turn now. A few weeks ago, Michigan had the highest gas prices in the country. The oil companies' reasoning was that Michigan is too far from the Gulf of Mexico. Strange, but I know of several states that are farther, but I guess it didn't matter.

Maybe someone determined that Chicago is farther away. I'd say it's pretty even. Regardless, it's only temporary. They'll come up with another equally lame excuse soon enough, and some other area will have the dubious honor of paying the highest prices.

Answer 7

I DONT THINK ANYONE HAS A ANSWER FOR THE PRICE OF GASOLINE...

HERE IN SO CAL (LONG BEACH) I PAY $2.55 A GALLON.



I WISH THE USA HAD PRICES WHEN I WAS 17YEARS OLD, 98 CENTS A GALLON!!!