HOUSTON – A gas station in the heart of the Galleria charging $5.29 per gallon for regular gas recently caught drivers’ attention and sparked a bigger question: Is there any limit to how much a gas station can charge in Texas?
The short answer is no.
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Texas does not cap gas prices during normal conditions, meaning gas stations can generally charge whatever they want based on location, competition and customer demand.
Price gouging laws typically only apply during declared disasters or emergencies.
The unusually high price at the Exxon on the corner of the 610 Loop and San Felipe prompted some drivers to question whether stricter rules should exist.
“For sure,” said Jonah Thigpen, who was visiting the Galleria area. “There should definitely be a cap.”
Still, economists and consumer experts often point to market competition as the primary factor that keeps prices in check.
Gas stations located near major tourist areas, airports, downtown districts, stadiums or along busy interstate exits frequently charge more because of convenience and higher traffic volume.
One gas station near Beltway 8 and Memorial Drive was charging $4.79 per gallon for regular gas, nearly 80 cents higher than Houston’s average at the time of reporting, according to data from AAA on Tuesday.
Drivers looking to save money can often find lower prices by leaving heavily congested areas and searching in nearby residential neighborhoods.
Gas stations located directly across from competitors also tend to keep prices lower because businesses are competing for the same customers.
“Convenience is key,” Thigpen said. “Literally wherever is close.”
Drivers can also use gas price tracking apps to compare prices before filling up.
Apps such as GasBuddy and other fuel comparison tools allow drivers to search nearby prices in real time.
Under Texas law, price gouging restrictions can take effect during disasters declared by the governor or president. During those emergencies, businesses can face penalties for charging excessively high prices for necessities, including fuel.
Outside of disaster declarations, however, there is no statewide maximum price for gasoline in Texas.