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Gas Wars: Prices at the pump plummet as new H-E-B store opens
by Joe Baker
Jul 24, 2014 | 587 views | 0 0 comments | 2 2 recommendations | email to a friend | print
Joe Baker photo
The sign at the new H-E-B convenience store shows $2.94 per gallon on Friday. Over the weekend it dropped to $2.84.
Joe Baker photo The sign at the new H-E-B convenience store shows $2.94 per gallon on Friday. Over the weekend it dropped to $2.84.
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KENEDY – The price of gas, at many local stations dropped dramatically last week after a new gas station opened for business in Kenedy.

In what appears to me an all out gas price war at the pumps, the new H-E-B convenience store opened July 16 with what was at that time the lowest price for gas in the county.

Not to be outdone, however, Murphy USA, Valero and other local gas stations started dropping their prices in response.

In just a few days prices dropped from $3.25 to $3.20 to $3.12 to $3.07 and by Monday, July 21 had sunk to $2.84 per gallon.

At $2.84, the price of gas in Kenedy is the lowest price in the state posted online at texasgasprices.com.

The average price of gas statewide, according to information at the website is $3.41, making the Kenedy prices 57 cents cheaper than average.

How low will it go?

That remains to be seen, and many local residents have taken to social media websites such as Facebook to monitor and report the falling local gas prices.

Currently there is a tie for the lowest price with both the new H-E-B convenience store and Murphy USA both selling basic unleaded gas for $2.84 per gallon.

Customers can even get deeper discounts if they purchase using a gift cards or store credit cards affiliated with the stations.

Gas purchased at Murphy USA, using a Walmart credit card Monday could be bought for just $2.69 per gallon.

The phenomena is not uncommon, whenever a new store enters an established market, according to information from retail gasoline industry sources.

Known as “penetration pricing,” the strategy benefits a merchant with strong financial resources as a way to attract new customers. The price typically will rise back to normal levels once the store has a foothold in the market and market share is gained.

How long will it last?

That remains to be seen, but local residents in Karnes County who have seen their cost of living rise through higher rent, higher food prices and many other necessities growing more and more costly say they are really hoping that it will last as long as possible.
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