Cheapest gas in Lubbock

Why are gas prices higher in Amarillo, the Panhandle?
March 31, 2021 – 09:04 pm

Kevin Welch and Enrique Rangel
Amarillo Globe-News


It's the question on everyone's lips.

Editor's Note

Getting to the bottom of the question "Why are gas prices so high here?" often seems like a shell game and the answer is as difficult to obtain as the crisp $50 bill it now takes to fill your tank with gas.

This story examines the reasons why gas costs so much in places like Amarillo, Dumas, Dalhart and Stratford and, why, by comparison, gas is so much cheaper everywhere else.

In the search for answers, over the past month reporters Kevin Welch and Enrique Rangel looked at gas distribution methods, crude oil supply lines, refinery locations, zoned pricing, regional pricing, and wholesale prices - called the rack price - of a gallon of gas in various cities.

They researched charges to retailers by credit card companies, contracts gas outlets sign with oil companies to ensure supply, rebates to retailers for identifying gas stations with particular brands such as Valero or Shell, the number of outlets selling gas here and in nearby cities and the average profit for retailers on a gallon of gas.

They examined the effects of competition, what refiners mean by supply and demand and continually asked those in the industry the same question you ask: Why does gas cost so much here?

Why does gasoline cost more in the Panhandle than any other place in Texas and most of the country?

The answer is not as clear-cut as you might think.

Retailers such as Greg Mitchell, president of Toot'n Totum convenience stores, say it's the refineries that are to blame.

Refinery officials say it's not their fault. It's simply a matter of basic economics at work - the law of supply and demand.

Consumers say it's because retailers are taking advantage of them at the pump and the reason prices are so high in Amarillo comes down to one word: monopoly.

Although Amarillo gas prices get the most attention, the reality is gas prices all across the Panhandle are higher than nearly anywhere else in the nation. Dumas, Dalhart and Stratford residents, just to name a few, pay even more than Amarilloans. In Canyon, where prices are typically lower than Amarillo, even those "cheap" gas prices are still considerably higher than places like Lubbock.

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Popular Q&A
What car is cheapest on gas?

Well the ones that are cheep usually have a smaller engine so you would have to fill it up more often so you would be better off getting something more expensive.

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