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Why do gas stations charge different amounts in the same local area?
There are many factors.   Most gas stations price their gas based on what it will cost them to replace it.  So when their supplier raises the price that it charges the station the station typically raises its prices proportionality.  The suppliers tend to have their own rates.  The business needs to make a profit so the business sets the price where it feels it will make the most money. Some stations buy bargain gas.  Many people say they find this gas to be just fine.  Personally some stations gas seems to make my cars run much worse.  I can say that my mileage can vary by as much as 4 miles to the gallon based on where I get my gas.  So I pay more to go to those stations that consistently have provided me good gasoline.  However higher prices do not necessarily mean better gas.  We have a BP just down the street that seems to have bad gas while one about a half a mile away that I prefer because I have never had a bad tank of gas.  Both are priced about the same. Also some localities have special tax zones.  These are local taxes levied based on the location.  We have 4 different zones here in Peoria IL (150k pop).  That does not take into account the smaller cities around us.