Many people that I've talked to over the years seem to have a favorite station they frequent, but many times end up paying more for gasoline- so today's tip- why pay more?

Many times, branded stations (BP, Shell, Exxon, Mobil, Chevron, Conoco, 76, etc.) end up charging more than non-branded stations for gasoline. Why is this? Likely because they have contracts that force them to buy their own brand of gasoline at a higher cost, but they are virtually guaranteed supply as part of their agreement. They then pass that higher cost on to you. Unbranded stations, or independents, can purchase gasoline from whoever has the cheapest wholesale price, which allows them to pass savings on to you. The only down side to being an unbranded/independent station is that in a time of supply disruption, you aren't guaranteed supply. All the branded stations get their deliveries first.

Next thing to address- (READ MORE!) there are some people who refuse to pump gas from a station that is not branded. Perhaps you're worried about gasoline quality- I've heard lots of rumors in the past years about the unbranded gasoline- does it have more water, do they water it down, it doesn't have as many additives, it makes your car run poorly, etc. Most of these rumors, if not all, are completely false (gasoline doesn't mix with water). I have heard of errors that resulted in folks pumping E85 thinking it was regular, but that could happen anywhere. The real mystery to me is who starts these rumors.

Some facts- The unbranded/"cheap" gasoline, like all other gasoline produced, is subject to daily testing and quality control at the refinery where it is produced. Each day, samples are collected from the final product, which are then tested before the gasoline is shipped. Additives are added to the gasoline as required by law to all gasoline, not just the gasoline produced for "brand name" stations. These additives fight build up and deposits in your engine. The gasoline must then meet minimum octane ratings, required by law, to ensure your engine does not get damaged from poor quality gasoline.

From what I see, there are unfounded concerns about unbranded/cheap gasoline. Obviously, people are concerned about what they put in their car, but generally, they are paying more for what many times may be the exact same gasoline. Big oil companies love to market their product so you feel better about paying more for it, but in the end... why pay more?

Make sure you're filling up at the gas station with the best prices next time, assured that the fuel you're getting has been tested and meets federal requirements.