Price wars: Local gas station sets fuel price much higher than nearby competitors
A Lukoil Gas Station in Monmouth County is selling fuel at a much higher price than its competitors, prompting some to wonder what the reasoning behind it is.
The station, located near the intersection of Newman Springs Road and Shrewsbury Avenue in Red Bank, is selling regular gasoline for $2.99 per gallon, while the gas stations across the road and adjacent are both selling regular gas for only $2.39.
People who live in the area have told News 12 New Jersey that it has always been a local mystery about why one station would sell gas for a much higher price than the stations nearby.
“My boyfriend thought maybe because of the corner that it's on? That you have to make a right hand turn and not a left hand turn?” pondered one driver.
Lukoil owner Sonny Chhabra tells News 12 that it has to do with the prices set by the distributor.
“Because Lukoil charges a higher price we have to sell at a higher price,” he says.
The high prices Lukoil charges franchises has been a sore spot for years. In 2012, dozens of them started charging $8 per gallon to protest what they called the “unfair rates charged by the parent company.”
Chhabra says that although he doesn’t sell as much gas at the Lukoil station as he would like, he also owns the Exxon station across the street, where he is able to set the price at $2.39 per gallon.
News 12 New Jersey did reach out to Lukoil, which is based in Moscow, Russia. Lukoil did not return a response.