Will Another Gas Station Increase Price Competition?

Today I'm looking at whether the new Wawa, still under construction, will affect the price of gasoline in the local market. My guess: not by much. 

Fuel pumps have yet to be installed at the Kendall Park Wawa site.

I've looked at several existing Wawa stores that already sell fuel to see if there's a trend. And it's hard to find one. In the Old Bridge area, Wawa is among the cheaper gas stations, but in Jamesburg and Bridgewater it's at the high end of the gasoline price spectrum.

The two Wawa locations in Old Bridge sell regular gas for $2.37/gallon, according to GasBuddy website at 3:08 p.m. That compares with $2.36/gallon, the average price of the 10 cheapest gas stations in Old Bridge. The lowest price on the list is $2.33/gallon, the price at Lukoil, 19 Petroleum and Sunoco. It's important to note, though, that Wawa stations charge the same price whether the customer is paying with cash or by credit card. Many of the cheapest gas stations charge extra, usually about 10 cents a gallon, if you pay using a credit card.

Jamesburg, Bridgewater Markets

In both Jamesburg and Bridgewater, Wawa's price was $2.45/gallon. That's still not bad, considering the average price for the state of New Jersey is $2.48/gallon, according to GasBuddy.

In the Jamesburg/Helmetta area, Wawa was the most expensive of six gas stations, at $2.45/gallon, according to GasBuddy. The average price for that group is $2.41/gallon. Wawa also sells gas at $2.45/gallon at its Bridgewater location, making it the highest price among six gas stations in the Bridgewater/Bound Brook area. The average in that group is $2.43.

Back to Route 27

On Route 27 in the Kendall Park/Franklin Park area (and slightly north into North Brunswick and Somerset), the average price for regular grade gasoline is $2.36/gallon, with the most expensive being $2.39 a gallon, the price at Exxon, the BP at Finnegans Lane, and the Valero on Route 27 south. The cheapest is $2.29/gallon at Raceway and the Valero on Route 27 north in North Brunswick.

Sunoco's gas price is just above the average of $2.36/gallon on Rt. 27.

The opening of the store represents a trend seen across the country. About 80% of gasoline is sold in the U.S. is through convenience store chains, according to the website for NACS, the association for convenience and fuel retailing. Major petroleum companies, meanwhile, have been getting out of retailing to focus on pumping crude oil and natural gas out of the ground. While many gas stations still have brand-name petroleum company signs, chances are they are independently owned.

Wawa, so far, hasn't responded to my requests for comments on the opening of the store.

"This Stretch of 27" covers business on Route 27 between Finnegan's Lane and Route 518. What's your story? Email me at lkiesche@gmail.com

Liz Kiesche
Liz, a business journalist, formerly worked for Bloomberg News in Princeton and New York.