Gas prices are soaring – but one Los Angeles gas station is taking it to the extreme | Los Angeles

It’s tempting to think that a gas station charging more than $8 a gallon is a glamorous Los Angeles curiosity. Kind of like shopping at Erewhon, the healthy grocery chain that impresses with a premium experience — and orders up to $22 a smoothie.

But there’s no glamor at the 901 N Alameda Street station. It’s just a grimy Chevron on the outskirts of Los Angeles’ Chinatown, regularly featured in news stories to illustrate California’s high fuel costs. At midday Tuesday, the station charged $8.31 for a gallon of regular gasoline.

Gasoline prices have soared since the United States and Israel attacked Iran, according to AAA data. But Alameda Street station is an exception: in Los Angeles, the average price hovers around $5.37.

An attendant who did not want to be identified said the station’s exorbitant prices were due to its downtown location. But when asked why stations just two miles away were selling gasoline at a much lower price, she hesitated.

Unsurprisingly, the station was largely deserted. A homeless man bought a bottle of Pepsi. Two cars approached the pumps and left. Only a few customers purchased gas during a 40-minute period. One of them was an exhausted woman in a black SUV with Nevada license plate. She quickly filled up her gas tank and headed toward Union Station, about two blocks away. The other was Alex Markarian, who works at the Los Angeles County assessor’s office near Grand Park.

“I actually didn’t pay attention to the price when I arrived,” he said. Markarian regretted not waking up in time to fill up his Prius near his home in Pomona before heading to the office. He ended up pumping 4.1 gallons – enough to safely collect – and paid $34.56. “Where I live, it’s cheaper by at least $3 a gallon,” he said. He calculated that he paid $12 in taxes “just because he was lazy.”

A content creator showed up and started filming. The attendant refused to provide contact information for the owner and said he was not interested in interviews. “It’s private property,” she said.

Soon, a police car appeared with its lights on. The content creator took to the public sidewalk.

The Chevron station is owned by Joe Bezerra Jr.’s Hawk II environmental group. Public records indicate the Bezerra family has a long history of operating independent gas stations in Southern California. Attempts to contact Bezerra and other family members were unsuccessful.

Online reviews indicate that Hawk II may have a habit of rubbing customers the wrong way. A mailman blasted his Hacienda Heights station for charging him $1 for a small amount of ice cream. Others complained about exorbitant gasoline prices in various localities. One reviewer called Alameda Station a scam. Some potential customers have alleged this is a scam or price gouging.

The high prices may be maddening at this resort, but they’re probably not illegal, said the Los Angeles County Department of Consumer Affairs and Consumer Affairs spokesman. Keven Chavez. Businesses can charge high prices, or even significantly increase them, and this is probably not considered a price gouging violation unless the increases are due to a declared federal, state, or local emergency.

AAA spokesperson Kandace Redd also said it’s not a crime — nor a surprise — that gas stations near each other charge varying prices. “[Prices] It can depend on factors like traffic, rent or where the station gets its fuel,” Redd said. “Gas stations located in busy areas, such as near highways, airports, tourist destinations or downtown neighborhoods, often charge higher prices.”

Indeed, Bezzera’s Chevron is wedged between the touristy Olvera Street and Philippe l’Original, a Los Angeles institution famous for its French sandwiches. The higher cost could be because rent and operating costs are higher there, Redd notes.

Additionally, next spring, California stations are forced to switch to a summer gas blend formula, which is more environmentally friendly in hot weather – but also more expensive to produce. Of course, the increased costs are passed on to the consumer. Redd suggests comparing prices with AAA’s free app, which shows where stations are located and how much they charge in real time.

While few people have the courage to sympathize with a hawkish owner, it’s also worth noting that station owners typically make low margins on gasoline, just a few cents per gallon. In California, nearly 90 cents of every gallon goes to a combination of local, state and federal taxes. Most of the rest goes to the oil producer, along with costs associated with refining, distributing and marketing the gasoline, according to the National Association of Convenience Stores — a trade group representing the gas station and convenience store industry. On the other hand, owners take the opportunity to buy drinks and snacks. Profit margins can easily exceed 40%.

Downtown Chevron potentially made more from the homeless man’s purchase of Pepsi than it did from Markarian’s fuel. But that doesn’t reassure Markarian.

“I won’t stop to refuel here again, that’s for sure,” he said.