BROKEN ARROW, Okla. — Oklahoma enjoys some of the lowest gas prices in the nation, but drivers can be frustrated with dramatic price swings that can vary by ten, twenty, or even 30 cents or more per gallon between stations blocks apart.
A viewer recently emailed 2 News Oklahoma, highlighting this exact scenario, prompting us to get answers about why gas prices can fluctuate so dramatically in the Tulsa area.
The price volatility can happen quickly, even at individual stations. At one Broken Arrow gas station, regular unleaded was selling for $1.96 per gallon on Monday morning but jumped to $2.39 per gallon by Tuesday at noon – a 43-cent increase in less than 24 hours.
Nearly all other gas stations we drove by on Tuesday offered a gallon of regular for $2.39, although at least one Fiesta Mart on 91st in Tulsa was a few cents cheaper.
The Murphy station by the Walmart Neighborhood Store on Aspen in Broken Arrow and at the area Sam's Clubs were substantially cheaper but require membership to buy the discount fuel.
2 News Oklahoma asked GasBuddy petroleum analyst, Matt McClain what sparks the big swings in gas prices?
"You may have an outlying station trying to compete with pricing, and they're quite possibly selling below their physical cost that it takes to put a gallon into their storage tanks," said McClain.
He explained that gas stations sometimes engage in aggressive price competition, with some operators willing to sell fuel at a loss to attract customers to their stores.
The price differences between nearby stations may also stem from when each operator paid to purchase their fuel supply. If one station owner paid less for a fuel delivery than a competitor, they might pass those savings on to customers rather than pocket the extra profit.
These pricing strategies can trigger a domino effect throughout an area, with competing stations matching or undercutting competitors' prices to attract more customers.
"You get artificially low prices where everybody's competing, everybody's competing, and then finally it busts, and then the price suddenly goes way back up for a little bit, then it slowly falls back down," McClain said. "It's a very normal trend."
McClain said this pattern of price spiking occurs in metropolitan areas across the country. It isn't just happening in Tulsa County. He adds, while it is frustrating for drivers trying to budget for fuel costs, the dramatic price swings are simply part of normal market competition in the gasoline industry.
Convenience stores and gas stations cannot sustain losses on every gallon sold indefinitely, McClain noted. Eventually, stations must implement price corrections to return to profitability, which often results in the sudden price increases that catch consumers off guard.
For drivers looking to save money, McClain recommends using apps and websites like GasBuddy to track real-time prices at nearby stations before filling up.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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