June 23, 2014

Corbin gas cheaper than London?

Expert says many factors play a role


It’s no secret that gas prices in Corbin are often lower than gas prices in London, sometimes by as much as 20 cents per gallon.  According to UK Economics Professor and Senior Associate Dean Kenneth Troske, there are many factors influencing gas prices, and why those prices might vary so much from city to city.

Things that factor into price fluctuation are state and federal taxes, the cost of turning oil into gasoline and the cost of additives in the gasoline.  Other factors are sometimes purely in the head of the consumer.

“Sometimes it’s in people’s perceptions about prices, said Troske, who pointed out that gallons of milk may also vary greatly from one city to the next.  Troske did acknowledge that a big component of fluctuating prices has to do with competition.

“Stations are competing with each other,” said Troske, who said that stations next to the interstate are the most competitive because they are the most likely to lure long distance travelers.  He said that these stations will purposefully drop their prices to “get them in there and get them to go to your store.”

Getting customers to come to the market is where the station makes true money anyway, according to Troske.

“They make more money from the items in their store than from the gas,” said Troske.  “They don’t make a big profit off the gas.”

Gas stations aren’t the only businesses that employ this business technique.  Troske said that “Wal-Mart purposely prices their gas below their competitors.”  This incentivizes consumers to fill up gas at Wal-Mart, which in turn motivates them to go into the store to buy more products.

Troske also points out that different cities get their gas from different refineries, which may have differing rates, due to supply and demand being different in different areas. 

Text Only
Local News
Local Sports

Tate Sasser tags out a Trimble County runner at second base. North Laurel rolled to a 13-0 win in five innings. North Laurel also defeated Richmond to advance to last night’s championship game. If North won that game, they would face Lewis County again tonight.

Community Events
Must Read
AP Video
13 Struck by Lightning on Calif. Beach Baseball Hall of Famers Inducted Israel, Hamas Trade Fire Despite Truce in Gaza Italy's Nibali Set to Win First Tour De France Raw: Shipwrecked Concordia Completes Last Voyage Raw: Sea Turtle Hatchlings Emerge From Nest Raw: Massive Dust Storm Covers Phoenix 12-hour Cease-fire in Gaza Fighting Begins Raw: Bolivian Dancers Attempt to Break Record Raw: Israel, Palestine Supporters Rally in US Raw: Air Algerie Flight 5017 Wreckage Virginia Governor Tours Tornado Aftermath Judge Faces Heat Over Offer to Help Migrant Kids Kangaroo Goes Missing in Oklahoma More M17 Bodies Return, Sanctions on Russia Grow Raw: Deadly Tornado Hits Virginia Campground Ohio State Marching Band Chief Fired After Probe Raw: Big Rig Stuck in Illinois Swamp
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide

Now that school is out, what are your family’s summer vacation plans?

A. No major plans. We will probably hang out around Laurel County.
B. Going to the beach!
C. Kentucky has a lot of wonderful state parks, and we plan to visit a few and enjoy quality family time.
     View Results