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Does Using Domestic Oil Mean Cheaper Gas Prices?

11:30 PM, Mar 15, 2011   |    comments
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gas prices

BUFFALO, NY -- From our 2 On Your Side Tipline, questions about a gas company that proudly advertises where the oil it uses to make gasoline comes from.

A TV commercial from Kwik Fill states: "When we buy United Refining Company gasoline and diesel, Kwik Fill, both made with 100% North American crude oil, we strengthen our nation by putting our own economy first."

Several people have contacted us, asking why Kwik Fill's gas prices aren't lower due to the fact that they make their gas from North American oil.  Jane from Arcade was one who wrote, "I wanted to know why Kwik Fill shows commercials and has signs posted at their gas stations saying that they are the only gas station using only American made crude oil.  If this is the case then why are their gas prices going up with all the other stations?"

We found a local Kwik Fill station selling a gallon of regular gas for $3.73.  That's a bit higher than AAA's average price of $3.71 in the Buffalo Niagara region.  

We spoke with an executive of Kwik Fill's parent company, United Refining Company.  The executive did not want to do a recorded interview, but told us oil prices are competitive these days.  He said it doesn't matter if gas companies are buying oil from the U.S., Canada, or the OPEC member nations in the Middle East.  He told us the market dictates the price of oil.

 

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