It's that old saying location, location, location. In this case it refers to why gas prices may be much lower in some areas and much higher in others.
One expert says competition is generally the reason you see prices at $2.55 in one city and $2.30 in another.
ECU's Dr. Fred Niswander says the price of gas has to do with your location and where you live and what they other guy might be doing. Niswander says gas stations in the same area respond to what others are doing.
Niswander adds most gas stations don't pay attention to what gas stations in other towns are doing because people are unlikely to spend the money to travel to that town unless the price is significantly lower.