Gas prices lower along Route 8 north
The gas stations along the Route 8 corridor north of Butler got some added competition last month when a new Sheetz opened in Center Township.
That Sheetz now seems to be locked in a competition with four other stations for the lowest gas prices.
The price for a gallon of unleaded gasoline this week was $2.53 at each of the five stations along Route 8 north of the city: GetGo, CoGo's, Sheetz, Kwik Fill and Jiffy Mini Mart, according to Gas Buddy Pennsylvania.
Other stations in the Butler area had prices reported from $2.65 to $2.75 per gallon for regular unleaded.
Sheetz has a reputation for setting low gas prices after it opens a new store, said Paul Gill, owner of the Jiffy Mini Mart in Center Township.
“You have to match them, because if you don't then no one will come to the store,” Gill said.
Despite the added competition, Jiffy Mini Mart is expanding. Gill bought the property behind the store, where the township offices used to be located, and is planning to renovate his convenience store and add more pumps.
“It's a busy road. I have a very good store there,” he said.
When asked about gas prices, Sheetz spokesman Nick Ruffner commented only that the company offers competitive prices at all their locations in the area.
“Sheetz is proud to operate five store locations in the Butler area, all of which have always offered highly competitive gas prices,” he said in an email.
GetGo, which is owned by Pittsburgh-based Giant Eagle, does take the prices of competing stores into account when setting its gas prices, spokesman Dick Roberts said.
“Prices are definitely set on a regional and local basis. The competitors would factor into that,” he said, though he declined to comment on the price at the Route 8 Butler Township location.
CoGo's and Kwik Fill did not return calls for comment about their gasoline prices.
Stan Kosciuszko, president of the Butler County Chamber of Commerce, said he had not heard of gas stations in the county battling for the lowest prices, though it often happens with other types of businesses. If one business offers a great deal, competing businesses will offer a similar deal in hopes of keeping their customers, he said.
“There is no downside for the customer,” he said.
Most gas stations do not operate with very large profit margins when it comes to gasoline, said AAA spokesman Jim Garrity.
They typically make between 3 and 7 cents of profit per gallon of gasoline sold, though they make a larger profit on many of the items sold in their convenience stores.
In Pennsylvania, businesses pay the highest gas taxes in the country. State and federal taxes add up to $0.777 per gallon here. The Pennsylvania tax is up to $0.583 per gallon after a $0.08 increase went into effect Jan. 1.
Unlike tobacco products, there is no law setting a minimum price on the sale of gas, meaning a company could charge any amount it chooses, Garrity said.
The lowest reported gas price in the area this week was $2.51 at Sam's Club in Butler Township, though that is only available to people who have a store membership. The lowest price elsewhere in the county was $2.60 at the Pilot Travel Center on Route 422 in Muddy Creek Township.
The national average price for gas this week was around $2.37 per gallon, according to AAA. The average cost in Pennsylvania was about $2.64.
Eagle intern Caleb Harshberger contributed to this report.
