The Passenger Seat
Whether you ride, drive or fly, transportation issues affect everyone. Especially when fuel prices are so high. Join Thomas V. Bona as he examines the things that make the world move.

Better get gas in … Chicago??

November 16th, 2007 at 05:16pm Thomas V. Bona

This is just weird. Usually, Chicago has the highest gas prices in the state, with Rockford second or even lower. But recently, with barrels of oil nearing $100, Rockford has pulled ahead of Chicago. As of this morning, the average gallon of regular unleaded was $3.25 versus $3.20 in Chicago, according to AAA’s fuelgaugereport.com.

Angry motorists will be quick to say it’s “gouging” but state officials, the Better Business Bureau and industry experts have all told me there’s no evidence of that. Anyway, gouging is only a term that legally comes into play during a disaster, such as a hurricane.

I talked to Bill Fleischli, executive vice president of the Illinois Petroleum Marketers Association/Illinois Association of Convenience Stores today. He said the reason Chicago prices haven’t gone up as much as ours is because Chicago is dominated by gas stations owned by the big oil companies, which can easily withstand the jump in wholesale costs. Basically, he said, they don’t raise prices as much and count on a large volume of customers buying other stuff to make their profit.

Meanwhile, Rockford has almost all independent gas stations, and they’re already fighting thin margins and can’t afford to keep prices down. Fleischli said part of the reason Rockford is so much higher than Downstate gas stations is because it’s a tougher, tighter market.

As always, it could be worse - Illinois on average has the 13th highest gas prices in the nation. But if you’re anywhere else in Illinois (or in Wisconsin, for that matter), go ahead and fill up.

Entry Filed under: Uncategorized

1 Comment Add your own

  • 1. Robert Trojan  |  November 21st, 2007 at 6:22 am

    Tom;
    I’m not sure I buy the story from Fleischli.
    As a frequest traveler to Chicago and O’Hare during the 1990’s and early 2000’s, I always noticed that gas prices around that area were ALWAYS $.20-.25/gallon higher than here in Rockford. Today, we are higher. You can go across the WI border as I did the other day and find lower gas prices than here in Rockford.
    One way to analyze this situation: Get a breakdown of what are the ingredients that make up the final pump price. Cost of gas from the supplier, state, city and any other taxes that add to the base cost. That will tell a better story. If the base cost of gas is fairly flat the the only variables between areas would be taxes and profit.
    Also, in tracking the comparisons of Rockford prices, why not compare them to O’Hare area, South Beloit, and a few other collar areas around Rockford?

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