Affluent Area Creates Higher Gas Prices

Drive just about anywhere out of town, and you`ll notice Northwest Arkansas has some of the most expensive gas in the state. University of Arkansas professor and economist, Kathy Deck, says its all about supply and demand. "Stations will charge what the market will bare. Northwest Arkansas is a pretty captive audience." While we`ve been told by fuel suppliers that it has to do with our location and distribution costs, Deck claims that`s just not the case. "Income comes into the calculation of what a market can handle so I certainly wouldnt discount the fact Northwest Arkansas has higher as well." So it boils down to supply, demand and how affluent Northwest Arkansas is. Folks here have the money to buy more expensive gas, and are willing to pay for it, so suppliers are charging you for it. "It`s fair. It`s a world of competition every business is working to maximize its profits." We tried contacting local suppliers but they either didn`t call us back - or told us point blank they wouldn`t talk about pricing. While all this seems extremely unfair - Deck says don`t blame it on the individual gas stations. "Retail gas stations charge a price that is between two and seven cents higher only making a nickel in profit." Deck says gas prices are really in the consumers hands. By carpooling, buying fuel efficient cars, and taking public transportation the cost of gas will go down. But in order for it to work, everyone has to be on board.