It’s tempting to think that a gas station that charges more than $8 a gallon is a glamorous Los Angeles curiosity. Something like shopping at Erewhon, the healthy supermarket chain that surprises with a premium experience and costs up to $22 per smoothie.
But there’s no glamor at the 901 N Alameda Street station. It’s just a dirty Chevron on the outskirts of Los Angeles’ Chinatown, regularly appearing in the news to illustrate the high cost of fuel in California. At noon Tuesday, the station charged $8.31 for a gallon of regular gas.
The price of gasoline has skyrocketed since the United States and Israel attacked Iran, according to AAA data. But the Alameda Street station is an outlier: In Los Angeles, the average price is around $5.37.
An employee who did not want to be identified said the station’s high prices are due to its downtown location. But when asked why stations just two miles away were selling gas for so much less, she demurred.
As expected, the station was practically deserted. A homeless man bought a bottle of Pepsi. Two cars approached the pumps and left. Only a couple of customers bought gas during a 40-minute period. One was an exhausted woman driving a black pickup truck with Nevada plates. He quickly filled up some gas and headed toward Union Station, about two blocks away. The other was Alex Markarian, who works in the Los Angeles County Assessor’s Office near Grand Park.
“I really didn’t pay attention to the price when I came in,” 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 (a lot to return safely) and paid $34.56. “Where I live, it’s cheaper by at least $3 a gallon,” he said. He estimated he paid a $12 tax “for just being lazy.”
A content creator appeared and started recording footage. The assistant declined to offer the owner’s contact information and said they were not interested in interviews. “This is private property,” he said.
Soon a police patrol appeared with its lights on. The content creator moved 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 long operated independent fuel stations in Southern California. Attempts to contact Bezerra and other family members were unsuccessful.
Online reviews indicate that the Hawk II may have a habit of annoying customers. A mail carrier lashed out at his Hacienda Heights station for charging him $1 for a small amount of ice. Others complained about exorbitant gas prices in several places. One critic called the Alameda station a scam. Some potential customers have alleged that this is a scam or price gouging.
The high prices may be irritating at this season, but they’re probably not illegal, says a spokesman for the Los Angeles County Department of Business and Consumer Affairs. Keven Chavez. Businesses can charge high prices, or even increase them substantially, and it probably won’t be considered a price gouging violation unless those 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) can depend on factors like traffic, rent or where the station gets its fuel from,” Redd said. “Gas stations in busy areas, such as near highways, airports, tourist destinations or downtown districts, often charge higher prices.”
In fact, Bezzera’s Chevron is located between touristy Olvera Street and Philippe the Original, a Los Angeles institution famous for its French dip sandwiches. The higher cost could be because rental and operating costs are higher in this location, Redd notes.
Additionally, come spring, California stations will be forced to switch to a summer gas blend formulation, which is more environmentally friendly for warm weather, but also more expensive to produce. Naturally, the increased cost is passed on to the consumer. Redd suggests comparing prices with AAA’s free app, which shows where stations are located and how much they’re charging in real time.
While few have the courage to empathize with a hardline owner, it’s also worth noting that station owners typically make slim margins on gas, just a few cents per gallon. In California, nearly 90 cents per gallon goes to a combination of local, state and federal taxes. Most of the rest goes to the oil producer, as well as costs associated with refining, distributing and marketing the gasoline, according to the National Association of Convenience Stores, a trade group that represents the gas station and convenience store industry. On the other hand, the owners keep the drinks and snacks. Profit margins can easily exceed 40%.
The downtown Chevron potentially made more from the homeless man’s purchase of Pepsi than it did from Markarian’s fuel. But this doesn’t make Markarian feel any better.
“I won’t stop here to refuel again, that’s for sure,” he said.
