What Are the Effect of Gas Prices Based on Location? Free Essay

The project was about the effect of gas prices by brand and neighborhood of Los Angeles County. The above information is collected for the purposes of finding the relationship that fuel prices have with certain locations and the brand providers of these products. In essence the project seeks to find how a certain location based on the economic development of the regions and the distance from the nearest refinery can affect the prices of gas within these regions.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Order now

Data Collection

Data Collection was conducted in five cities Los Angeles Country.

Namely:

Huntington

Gardena

Compton

Lakewood

Torrance

All the cities selected are in close proximity to each other, the relativity of the locations brings about a commonality in the prices in gas in the different locations. The project seeks to find the averages price, the Maximum Price, the Minimum Price and the Mode Price in all the locations.

Data Sources

The data in the project was acquired from an online platform known as Gas Buddy. Gas buddy is a gas prices syndication website that acquires different gas prices from different gas vendors across United States of America.

The USA Gas Heat Map provided information necessary about the different gas prices of different vendors in different cities of Los Angeles CA. The map is very dynamic as all the data provided in the data are real time information on the current gas prices.

The dynamicity of the data helps to ensure the credibility and the validly of the data source. The data acquired is eligible and all the information acquired can be accredited and referred to from the companys database.

Gas Vendors

The findings of the research showed the popularity of these gas brands/vendors in the cities of Los Angeles:

Mobil

Shell

76

ARCO

Chevron

Valero

Report Results

Los Angeles Total Results

Total Average Price of $2.6754/gallon

The average price is higher than the mode by $.1854 per gallon. This implies that most oil marketers in sampled states sell at a higher price than the most firms. This implies than a couple of high value companies are selling gas at premiered prices due to their personal brands and still make good sales especially in Gardena and Hunting Park

Total Mode $2.49/gallon

The most charged gas price stands at $2.49 per gallon. This is the price charged by convectional gas marketed with an average brand,

Total Max $3.29/gallon.

S Vermont Ave, Shell sells at $3.29 per Gallon at Gardena. Generally gas prices are high at Gardena City. The gas marketing brands seem to be competing on other rails safe for pricing techniques.

Total Min $2.44/gallon

Costco Gas Marketing Brand sells in Lakewood at $2.44 the minimum price in sample space, while sells at $2.47 per gallon at Terrace City. The position is a determinant of gas price.

Cities Individual Results

City Average Max Min Mode

Huntington Park 2.683333 2.99 2.49 N/A

Compton 2.634 2.91 2.45 N/A

Lakewood 2.663 2.99 2.44 2.79

Torrance 2.622 2.93 2.47 N/A

Gardena 2.766364 3.29 2.53 2.65

Discussion

Average

From the averages above, it can be concluded that Gardena has the highest gas prices ($2.766364 per gallon) relative to the other 4 cities of Los Angeles, this is followed by Huntington Park at $2.6833 per gallon. The data above is an indicator of the variances in gas prices in the cities of Los Angeles. The vendors of these gas are distributed in different parts of every city. The open markets advantage allows for quite a number of players in the market both top tier and normal gas enterprises.

Max

Gardena has the maximum gas prices per gallon that is $3.29 relative to the other selected cities for the research.

Min

Lakewood has the minimum price of gas per gallon $2.44. These price is lowest as it is an average of all the prices incurred in different locations in Lakewood city.

Mode

There are gas prices that have been common in relatively different gas stations in a given city. These prices are a modal representations of gas prices in different nations. Fact is that the mode values are not common on all cities, it is only in Lakewood and Gardena that given vendors have with almost equal gas prices.

Conclusion

The location and Neighborhood are a significant determinant of gas price. Gas prices differ with different locations. Regions that are further away from the port tend to have a higher gas prices than regions close to the port. Different vendors have different prices of gas even those found within the same location. Vendor prices differ depending on company policies and other factors like cost of acquisition and target profit margin. Other prices of gas differ due to the socio-economic status of people living within a given location.

Work Cited

"Gasbuddy.Com - Find Low Gas Prices In The USA And Canada". Gasbuddy.com. N.p., 2016. Web. 18 May 2016.