The Enid News and Eagle, Enid, OK

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Discussion

May 19, 2009

NEW: Gas prices up just in time for summer

Gas prices increase



By ROCHELLE HINES

Associated Press Writer

OKLAHOMA CITY (AP) — Oklahomans will be paying higher prices for gasoline as summer gets closer, but prices probably won’t be as high as they were in 2008, according to AAA Oklahoma.

The average price of gasoline in Oklahoma has risen to $2.16 per gallon, about 15 cents lower than the national average of $2.31. Prices are about $1.50 below the state average of about $3.66 in May 2008.

“This is not unexpected, that we would see a little bump at the pump as summer approaches,” said Chuck Mai, a spokesman for AAA Oklahoma. “But with demand relatively low, inventories quite good, and with the economy being still on the rebound, these three factors have helped to keep prices in check.”

According to AAA’s Web site, the average price of regular, self-serve gas was $2.18 in the Oklahoma City area, about 29 cents more than last month’s $1.89. In Tulsa, the price was $2.08, about 22 cents higher than April’s average of $1.86.

Gas prices averaged $3.63 in Oklahoma City and $3.62 in Tulsa in May 2008.

Mai said it’s difficult to determine why gas prices are about a dime higher in the Oklahoma City area than in the Tulsa area.

“The two markets are totally different in their composition,” Mai said. “Yes, we’re all Oklahomans, but the price leader, the brand that sets the pace in Oklahoma City, is 7-Eleven.

“The brand that sets the pace that other stations follow in Tulsa is QuikTrip, so they are completely different animals.

In past analyses, Mai said he has found that there is a 50-50 split when it comes to which metropolitan area has the highest gas prices.

“There’s no rhyme or reason to it that I can discern,” he said. “I have to believe that it’s simple competition within each market place.”

According to AAA, other average prices included $2.19 in Lawton and Idabel; $2.17 in Enid; $2.16 in Ponca City and $2.15 in McAlester. The highest averages were in Ardmore, $2.23, and Guymon, $2.26.

“That’s a function of two factors. One is the increased transportation costs and two is the absence of competition,” Mai said.

“It’s been said over the years that Oklahoma City and Tulsa have some of the highest concentrations per capita of gasoline stations of any place in the country,” he said.

“Because of the prevalence of the oil industry in Oklahoma and the proliferation of 7-Elevens and QuikTrips, we have a very high level of competition which helps to keep our prices lower.”

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