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Q. Gas prices in the cities and towns outside of Houston are 25 cents cheaper per gallon than in the Houston metropolitan area. This is raising the price of food and other commodities, as well as utility charges, since they are all directly related to the cost of gas. You can rule out the competition factor because smaller towns have only a few stations, so you would expect their prices to be higher than Houston, as we have so many stations. The only conclusion that I can draw is that the city is charging some kind of tax that is raising the gas price. Is this true? If not, why are the prices so high in Houston?

A. There is no city tax on gasoline and nothing particular to the operation of the city that accounts for price differences. In fact, some Web sites touted in the media indicate that prices vary widely across neighborhoods throughout Houston by as much as 10 cents or more. Some of the price variations have to do with localized market competition. Some of it has to do with the suppliers and wholesalers from whom station operators are buying their fuel. And a significant factor has to do with the blend of fuel that is required in the Houston area by federal clean-air regulations. Refining the cleaner-burning mixes is more expensive, particularly in summer months when air quality is more of a problem, and it drives up the cost per gallon. Even so, in general, the average price for gasoline in the Houston area is not too far out of line with other similar areas in the state. AAA on the first weekend of June, for example, reported that the average cost of gasoline statewide was $2.858 per gallon, and the Houston average was $2.861, a difference of only a few cents.

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