What is the difference between gas sold at a branded gas station (Branded) and gas sold at a Mom and Pop or Costco (Unbranded)?

Branded gasoline is differentiated by the “additive” package that is added to basic gas. You will recognize the names because of the BIG marketing dollars spent telling us why one additive, such as Chevron with Techron, is better for your car than the competition think Shell V-Power.

Major refineries trade Gasoline and Diesel in order to supply their customers in many locations. An example, is when a company with a refinery in Northern Ca trades or sells product to a company who has a refinery in Southern California. In addition, product is shipped through pipelines and used by refiners, traders, and marketers alike. Once the product is at the loading facility (rack), the major brands add “special” additive packages that they hope will entice you to buy from their stations instead of the competition.

Is it bad for my car if I buy from an Unbranded station (Costco)?

No. Even without the additive packages, all fuel sold at gas stations must meet minimum federal and state specifications. The Branded stations quote added benefits of using their fuel, but essentially you are buying it because the movie “Cars” was cute.

Mary Fleet Manager Wall Branded Gasoline, diesel, fuel, Gas inversion, Gas Stations

When the local mom and pop station is charging more for gas than the major brands (Shell, Chevron, etc. . .), we are in what is called a price inversion. An Inversion is when the branded price of gasoline is less than the unbranded price. (Think paying more for coffee at 7-11 than Starbucks)

Some background. Gas stations in California sell a special recipe of fuel. Only a few refineries in the world are actually setup to make California gas. On a normal day, the refineries know they can sell every gallon they produce. However, when there is an unscheduled refinery problem or a natural disaster that limits the fuel available, refineries will increase the unbranded price, to insure that there is enough gasoline for their Branded gas stations, think “supply and demand” and “market share retention”.

The good news is the vast majority of diesel is distributed through people like DeWitt, so those prices rarely if ever are affected unequally the way gas prices are. In fact diesel sold at a Branded Station is almost always sold at a premium!

A few years ago we realized that price inversions for gasoline were increasingly becoming a way of life. We let many of our customers know so they could choose between service and control or price. Many of you chose control. (We are so glad you did!)

We have the ability to give you the best of both worlds: service, control, single source billing and an alternate fuel option during the sometimes steep gasoline inversion. If you would like to know when a gasoline inversion is taking place subscribe to DeWitt Petroleum on Twitter or call us for more information.

Mary Fleet Manager Wall Branded Gasoline, California Fuel, Gas inversion, Gas Stations