Congratulations, Californians: you are probably paying morethan you have to during your fill-ups, according to the Pump Price SpreadReport issued by GasBuddy. Looking at the 2016 average differences between thehighest and lowest priced gas stations within GasBuddy-defined metro-areas, 15of the top 20 cities with the widest price variation are located in The GoldenState.
The report found that gas price variation is present in all 456 metro areas in the database, with the median spread at 27.5 cents. Topping the list is Hanford-Corcoran, Calif with a whopping $1.26 separating the most expensive and least expensive stations. For smart shoppers, thats a potential savings of about $63 per month. San Bernardino and Bakersfield came in second and third on the list, where consumers can potentially spend an extra $1 per gallon if theyre not careful.
Thespread is more significant in certain areas due to a number of factors likecompetition and geographic location, said Patrick DeHaan, senior petroleumanalyst at GasBuddy. Analyzing the data GasBuddy has collected through theyears, we noticed some commonalities amongst the cities ranked the highest:they tend to be sprawling with a major connecting highway running through them.Additionally, they have the presence of a large warehouse retailer in themarket. The good news for drivers in these areas is that there areopportunities to save money if you know where to look and choose to shopwisely.
According to the U.S. Energy Information Administration, fuels average 4-5 percent of an overall consumer spending, a large part of the budget. Even cities with smaller spreads between station prices see variances. The average potential for savings in Jackson, Mich. (ranked 400 out of 456 MSAs) is 15 cents per gallon, which can add up to almost $100 per year.
Click here to see the full reportand where your city ranks in terms of average gas price differentials.