Demand drives GV gas prices

Gas prices are about 25 cents a gallon higher in Green Valley than in Tucson, and newcomers to the area often wonder why.

The issue is nothing new in Green Valley, but with an influx of winter visitors and the price of oil reaching $90 a barrel last week, concerns grow.

Comparing prices at two Circle K gas stations, one in Green Valley/Sahuarita and the other on Nogales Highway in south Tucson, the price was 26 cents higher locally than 10 miles away. When asked about the disparity spokesperson for Circle K, Diane Ketterhagen said: “We respectfully decline to comment at this time.”

Visiting five other local gas stations on the same day — Chevron, two Texaco stations, Shell and Safeway where the price of self-serve unleaded was $2.859 at each — owners and managers offered explanations.

Joe Picchioni, who manages the Chevron and two Texaco stations, said driving to Tucson for lower price gas makes prices higher in Green Valley.

Station owners and managers need to meet a bottom line and when drivers buy their gas in Tucson it reduces the volume of gas sold locally, therefore higher prices, he explained.

To meet expenses and make a fair profit he said there either has to be a higher volume sold at a lower price or a lower volume sold at a higher price.

In Green Valley, a lower volume of gas is sold; therefore prices are higher.

“The attorney general came down and saw no evidence of price gouging; Gov. Napolitano said 25 percent higher prices is price gouging; that’s not happening here,” Picchioni said.

Andrea Esquer, press secretary for Attorney General Terry Goddard, said that the office takes pricing issues and complaints very seriously and Goddard has been to Green Valley to investigate. “Our office has no ability to control prices; retailers can charge what the market will bear.

“Gas prices in Tucson now are below the national average; Green Valley prices are close to the national average,” she explained.

Arizona does not have anti-price gouging legislation, and Esquer said even there was such legislation it would only apply in times of emergencies.

To encourage residents to buy gas locally, two stations offer incentives.

Safeway card holders get three cents a gallon discount when using the card, and card holders who spend $50 in groceries in one purchase can earn a 10 cents a gallon discount on their next gas purchase.

Rocky’s Shell offers a MasterCard from CitiCards, which when used to purchase gas, currently has a discount of 14 cents a gallon.

AAA Arizona said Arizonans were paying an average of $2.698 for a gallon of regular unleaded gas as of Oct. 11; Peoria drivers were paying the lowest in the state at an average of $2.633 per gallon, while Flagstaff drivers were paying the most at an average of $2.832.

AAA Public Affairs Specialist Michelle Donati said Green Valley’s gas prices are not reported separately in their weekly fuel report; Green Valley’s prices are reflected in the average for Pima County and are averaged in with other municipalities that include Catalina, Marana and Oro Valley.

In spite of high gas prices, consumer demand has not lessened; Arizona drivers use about 7.3 million gallons daily.

One local resident said he has a rule: “Never leave Tucson without gassing up.”

However, remember that those in the industry say that the more that local residents gas up in Tucson, resulting in lower volume in Green Valley, the higher prices will likely continue to be here.

Ellen Sussman is a Green Valley freelance writer. Contact her at ellen2414@cox.net