Why are gas prices higher in the SCV than in the SFV?

In Wednesday's Signal, reader Paul Hinton opined on gas prices in Santa Clarita: "All you have to do is go to the San Fernando Valley, where gas prices are typically 10 to 25 cents lower. Why is this? It seems like the gasoline dealers have formed a secret pact to gouge the residents here. Outside of Hawaii, it appears we have the highest gas prices in the nation." Nothing will get one's engine running like a good debate about gas prices. So what do you think, are gas prices in the SCV conspiratorially higher on purpose, or is there a logical reason it costs you more to fill up your Hummer H2?

First of all, are gas prices higher here? Anecdotally, I'd say yes. There are pockets all around Los Angeles that have cheap or expensive gas, and Santa Clarita seems to be near the top. A quick look at GasBuddy.com's LA price map, however, shows we're not that much different than the SFV, though the data on GasBuddy is submitted by readers and may not be entirely accurate. So let's just say for argument's sake that we are 10 to 25 cents higher on average than pumps over the hill. Pardon me while I try to find some reasons why gas might cost more in the SCV.

First, Santa Clarita is a more affluent area than the majority of the San Fernando Valley. So if gas station owners or their suppliers want to charge more for gas here, it's probably because we can pay for it. This would be Mr. Hinton's conspiracy theory.
I can also imagine a gas station owner saying that it's more difficult to transport gasoline to the SCV. They might explain: "We live in a valley, and suppliers have to truck it over the pass," as if that wasn't something tens of thousands of us did everyday. I'm not buying that excuse.
Finally, maybe supply and demand can answer the riddle. Demand for gas in Santa Clarita is high because few of us use mass-transit. Most of us have to drive to even do simple things- pick up kids from school, go to the grocery store, eat out, not to mention commute out of town daily. Simply put, demand for gas is high in Santa Clarita, and where demand is high prices go up.

Those are about the only reasons I can think of that gas costs more in the Santa Clarita Valley. To be honest, I'm not sure why gas is more expensive in California, which has some of the largest ports in the nation and refining capacity in nearby Carson. Aside from the environmental regs we place on our petro and automotive industries, why is gas so much more expensive in California over all? I created some poll options (poll is on the right side of this page) Tell us why you think gas costs more in the SCV. If you don't find a reason you agree with, select other and comment on your own idea!

Comments (2)

ChrisAFebruary 2 at 6:15 AM PT

I don't usually drive out of the SCV and when I do, only on rare occasions do I buy gas. The USA gas in Canyon Country usually has good prices and it's close, so that's where I go. One thing I have noticed, however, is that the Valero station on the corner of Valencia & Bouquet Canyon gets into price wars with the Chevron station kitty-corner, and sometimes both of those are lower than the USA. So I try to go buy at the Chevron when I can!

mikeFebruary 2 at 8:17 AM PT

Gas in the bay area is significantly more expensive that what we see, particularly in San Francisco. I remember a story that taught me a lot about gas prices. There was a station the corner of Whites and Soledad Canyons that had to go out of business because their wholesaler (Chevron, I believe) set their prices unreasonably high. This article explainer how the big companies sell their gas at different rates to different stations, based on their determination of the best retail price. Gas station owners just make a few pennies to the gallon. Their profits per gallon fluctuate little with the price of gas, whether it be the result of larger trends or a result of their wholesaler raising the rates. We have a relative scarcity of gas stations. Where is the San Fernando Valley can you drive past the homes of 20,000 people on way to the next gas station? Valencia has only four gas stations in all, three if you don't count the Auto Spa. In the SF Valley, if you know your way around, you can choose from countless stations that aren't out of your way. In my experience, the most expensive gas stations in Santa Clarita are those that rely on opportunity. The Mobil on Bouqet, past Haskell is particularly bad, but for many people is the only convenient gas station. The stations on the Lyons exit aren't so cheap, because they get so many cars and depending on where you are coming/going, you don't have an equally easy choice between the four stations. On the other hand, the strip of stations by the Old Road exit are more competitive, because it is easy to choose among the stations there.

ChrisAFebruary 2 at 6:15 AM PT
I don't usually drive out of the SCV and when I do, only on rare occasions do I buy gas. The USA gas in Canyon Country usually has good prices and it's close, so that's where I go. One thing I have noticed, however, is that the Valero station on the corner of Valencia & Bouquet Canyon gets into price wars with the Chevron station kitty-corner, and sometimes both of those are lower than the USA. So I try to go buy at the Chevron when I can!
mikeFebruary 2 at 8:17 AM PT
Gas in the bay area is significantly more expensive that what we see, particularly in San Francisco. I remember a story that taught me a lot about gas prices. There was a station the corner of Whites and Soledad Canyons that had to go out of business because their wholesaler (Chevron, I believe) set their prices unreasonably high. This article explainer how the big companies sell their gas at different rates to different stations, based on their determination of the best retail price. Gas station owners just make a few pennies to the gallon. Their profits per gallon fluctuate little with the price of gas, whether it be the result of larger trends or a result of their wholesaler raising the rates. We have a relative scarcity of gas stations. Where is the San Fernando Valley can you drive past the homes of 20,000 people on way to the next gas station? Valencia has only four gas stations in all, three if you don't count the Auto Spa. In the SF Valley, if you know your way around, you can choose from countless stations that aren't out of your way. In my experience, the most expensive gas stations in Santa Clarita are those that rely on opportunity. The Mobil on Bouqet, past Haskell is particularly bad, but for many people is the only convenient gas station. The stations on the Lyons exit aren't so cheap, because they get so many cars and depending on where you are coming/going, you don't have an equally easy choice between the four stations. On the other hand, the strip of stations by the Old Road exit are more competitive, because it is easy to choose among the stations there.