LA Gas Station Charges Over $8 Per Gallon Amid Middle East Conflict
The average price of a gallon of regular gasoline in Los Angeles County has surged to $5.37, driven by the escalating war in the Middle East. However, one Chevron station in downtown LA is taking this trend to an extreme level, charging more than $8 per gallon—nearly $3 above the city's average.
An Outlier in the Fuel Market
Located at 901 N Alameda Street on the edge of Chinatown, this Chevron station is far from glamorous. It's a dingy spot that frequently appears in news stories highlighting California's high fuel costs. On a recent Tuesday midday, the station was charging $8.31 for a gallon of regular gas.
While gasoline prices have spiked since the US and Israel attacked Iran, according to AAA data, this station stands out as an outlier. In Los Angeles, the average price hovers around $5.37, making the Alameda Street station's rates particularly eye-catching.
Customer Reactions and Business Justifications
Unsurprisingly, the station was largely deserted during a recent visit. An unhoused man purchased a Pepsi, while two cars approached the pumps only to drive away without fueling. Over a 40-minute period, only a couple of customers bought gas.
One of those customers was Alex Markarian, who works at the LA County assessor's office near Grand Park. "Really, I didn't pay attention to the price when I drove in," he admitted. Markarian expressed regret for not filling his Prius near his home in Pomona before heading to work, where prices are at least $3 cheaper per gallon. He ended up pumping 4.1 gallons and paying $34.56, calculating he paid a $12 "tax for just being lazy."
An attendant who declined to be identified attributed the high prices to the station's downtown location. When questioned why stations barely two miles away sold gas for much less, she demurred.
Ownership and Legal Considerations
The Chevron station is owned by Joe Bezerra Jr's Hawk II Environmental Group. Public records indicate the Bezerra family has long operated independent fuel stations in Southern California. Attempts to contact Bezerra and other family members were unsuccessful.
Online reviews suggest Hawk II may have a history of frustrating customers. A mail carrier blasted its Hacienda Heights station for charging $1 for a small amount of ice, while others complained about exorbitant gas prices at various locations. One reviewer called the Alameda station a scam, with some alleging price gouging.
However, LA County Department of Consumer and Business Affairs spokesperson Keven Chavez noted that high prices are likely not illegal. "Businesses can charge high prices, or even substantially raise them, and it is likely not considered a price gouging violation unless those increases are due to a declared federal, state or local emergency," he explained.
Factors Behind the Price Disparity
AAA spokesperson Kandace Redd emphasized that varied pricing between nearby stations is neither a crime nor surprising. "[Prices] can depend on factors such as traffic, rent or where the station gets its fuel," said Redd. "Gas stations in busy areas, such as near highways, airports, tourist destinations or downtown districts, often charge higher prices."
The Chevron station is wedged between touristy Olvera Street and Philippe the Original, an LA institution famous for its French dip sandwiches. Redd noted that higher rent and operating costs in this location could justify the increased prices.
Additionally, California stations are required to switch to a summer blend gas formula in spring, which is more environmentally friendly but costlier to produce. This cost is typically passed on to consumers.
The Economics of Gas Stations
While station owners generally realize slim margins on gasoline—often just pennies per gallon—they can rake in profits from drinks and snack foods, where profit margins can easily exceed 40%. In California, nearly 90 cents of each gallon goes to a combination of local, state, and federal taxes, with most of the remainder covering oil production, refining, distribution, and marketing costs.
The downtown Chevron may have made more on the unhoused man's Pepsi purchase than on Markarian's fuel transaction. However, this offers little consolation to customers like Markarian, who vowed, "I won't be stopping for gas here again, that's for sure."
Redd suggests consumers comparison shop using AAA's free app, which shows station locations and real-time pricing. As Middle East tensions continue to impact global oil markets, LA drivers face the challenge of navigating a volatile fuel landscape where prices can vary dramatically within just a few city blocks.
