When you pull into a gas station, you might see a Chevron charging $4.25 per gallon while a Shell down the street offers fuel at $4.05. Why such a price gap? In 2025, the answer isn’t just about oil prices. It’s a complex blend of brand strategy, location, supply chains, regulatory burdens, and technology investments.

In this article, we break down the mechanics of how fuel prices are set across different gas station brands and what factors influence them in today’s energy landscape.

1. The Myth of Uniform Pricing

Many consumers believe gas prices are universally pegged to crude oil prices. While oil markets do play a role, retail pricing is hyper-local and brand-specific. A single metro area can show a spread of $0.30 to $0.50 per gallon based solely on brand strategy and operational overhead.

According to the U.S. Energy Information Administration (EIA), in 2025:

• Crude oil accounted for 47% of the retail gas price.
• Taxes contributed 17%.
• Distribution, marketing, and retail operations made up 36%.

That final 36% is where brand differences begin to show.

2. Brand Premiums: Chevron, Shell, BP vs. Value Brands

Some brands intentionally price higher, trading on reputation, fuel quality additives, and service consistency.

Customers often pay a premium for perceived quality or engine protection. Top-tier fuel certifications, while technically voluntary, influence consumer trust and branding decisions.

3. Location, Location, Location

Urban stations often charge more due to higher rent, property taxes, and local regulations. Compare that to rural stations that may see lower volume but cheaper land.

Some brands avoid placing outlets in high-cost areas to maintain pricing competitiveness. Others deliberately maintain urban footprints for brand visibility.

4. Supply Chain & Refinery Access

Gas stations tied to brands with regional refineries (like Valero in Texas) often benefit from lower supply costs and reduced transportation overhead.

In contrast, brands that rely on third-party fuel brokers or long-haul deliveries may see added costs passed on to the consumer.

5. Franchised vs. Company-Owned Models

Franchised brands like Shell and BP allow location-level pricing control within set guidelines. Company-owned brands (like Costco or QuikTrip) centralize pricing decisions, often passing bulk-buying savings to the consumer.

6. Loyalty Programs and Bundled Discounts

Programs like Shell Fuel Rewards or BPme Rewards incentivize brand loyalty with per-gallon discounts. Stations tied to grocers (like Kroger or Safeway) offer points that stack up at the pump.

By 2025, over 62% of U.S. gas station customers participate in at least one fuel rewards program.

7. State and Local Tax Differences

Taxes on fuel vary widely by state and even by municipality. As of Q1 2025:

‍


These tax variances explain some of the largest state-to-state price disparities, regardless of brand.

8. EV Integration Costs

As more stations add EV chargers, some are subtly adjusting gas prices to cover infrastructure investments. Brands like BP and Shell, heavily investing in EV charging, have noted slight increases in per-gallon pricing at dual-fuel locations.

Final Thoughts: Transparency is Power

In 2025, fuel price variation isn’t random. It’s a carefully calculated strategy that blends legacy branding, cost structures, geography, and evolving energy transitions.

For everyday consumers, tools like GasBuddy and Google Maps fuel comparison features can make a real dent in weekly spending. For operators and investors, understanding these dynamics is essential to staying competitive in a low-margin, high-volume business.

As the gas station industry continues to evolve, transparency and data will be the ultimate fuel for decision-making.