Sunday, June 04, 2006

Atlanta Gas Prices - We spend $5,800 per year

This blurb in the Atlanta Journal-Constitution by Tammy Joyner amazed me. I wanted to reprint it here in its entirety.
Gas pains? Nobody's got them like Atlantans.

Atlanta topped the list of cities most affected by rising gas prices, according to the latest survey by Sperling's, the same researchers who compile the "Best Places to Live" survey.

Atlantans will spend, on average, almost $5,800 on gasoline this year, or roughly 12 percent of household income.

The survey looked at the cost of gas in 80 U.S. cities. The results were based on households with two drivers, the number of daily miles each driver logs as well as daily gas use.

Eight of the 10 hardest-hit cities were in the South. Los Angeles and San Diego rounded out the top 10.

The reason? Sprawl.
Truly awful. I am a part of it, too. Yesterday I drove from my home to downtown Atlanta and back again - twice. That is over 140 miles in one day! And sprawl is the reason.

Update - Remove random whining
 
Comments:
One of the main reasons the Atlanta area had always enjoyed low gas prices was the convergence of three major pipe lines here. Ergo, the cost to get the gas to the dealer here is as cheap as it can be. Doraville to the station is not far anywhere in Metro.

The primary reason for our no longer enjoying low prices I feel is QT. Yes QT you have seen them move into an area lower the prices to whatever price is required to put the other stations nearby out of business. They could afford the early loss to put them out. This is predatory pricing. Notice when the competitors are gone the prices go back up. They actually go up to exceed the previous price. If you will look at national surveys of pricing compared to Atlanta over the past several years you will see the larger QT has gotten the smaller the margin is between National average and Atlanta average gas prices.

Want cheaper gas, boycott QT for the rest of this year. See what happens if enough of us do that. They will lower their price to get their gallonage up. Guess what their competitors will lower theirs to stay in line at least until it gets to a fair profit.
 

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