Mexico, Mo. price war makes low fuel costs in Audrain Co.

Many area residents driving Highway 54 have noticed a distinct difference in gas prices from Mexico to Vandalia.

A mini price war of sorts is driving low fuel prices in Mexico.
Down .10 cents per gallon than Vandalia at press time, Mexico’s bottom-end fuel prices are beating Vandalia’s market and surrounding communities to the north.
Mark Abel, President of Abel Oil Company based in Louisiana, said large corporations — which are anywhere from 20 to 500 times the size of Abel Oil and other area fuel suppliers — are causing extremely competitive prices in Mexico.
Abel said the variety of suppliers in Mexico, the commodity fuel market, and increased freight costs are also to blame.
At press time, Missouri’s average price for regular gasoline is $3.633, according to www.gasbuddy.com. Regular gas in Vandalia costs $3.69 per gallon with the Mexico market coming in at $3.59 per gallon.
“(Mexico) has been a town that has lower prices,” he said. “It’s not always that way. It just varies. It just happens to be the lowest in the area. (The stores) charge a mini price war in Mexico.”
Abel said he is the source of Abel’s pricing in Vandalia.
“(Fuel) is a commodity. I get my prices at six o’clock at night,” he said. “I react to that and local competition. I really don’t have much control over it other than I buy and sell it,” he said.
Abel said his fuel prices do reflect area competition, but the prices are a dictated by commodity market pricing.

Read the rest of this story in the September 26 issue of The Vandalia Leader or purchase an electronic edition.

Posted on Wednesday, September 26, 2012 at 8:38 am