Houston’s priciest pumps now flirting with $5 gas

At two gas stations in one of Houston’s wealthiest neighborhoods, the cost per gallon has spiked more than 40 cents in roughly 40 days. In the River Oaks-Upper Kirby corridor, some drivers are now coughing up a pretty penny (and nine-tenths of one) per gallon.

On Mar. 19, Chron reported that the price per gallon at the Shell at 3903 San Felipe Street was $4.39 and  nine-tenths of a cent, and the Exxon at 4423 San Felipe Street was charging $4.59 and nine-tenths of a cent. As of April 30, both stations are now charging $4.99 and nine-tenths of a cent—or put more succinctly— essentially $5. 

That raises two questions as prices flirt with $5 a gallon: why do stations still lean on nine-tenths pricing and how do these charges stack up against the rest of Houston? 

The fraction-of-a-penny pricing dates all the way back to 1919, according to The Hill, when the first gas taxes were imposed by states and the federal government. The fraction was a way to pass on the cost of the tax straight to the consumer. 

While the tax wasn’t always nine-tenths, it rounded up to that amount by the 1950’s.

“Now every station engages in it, so if a station were to suddenly stop, they’re gonna look more expensive and people aren’t gonna fill up there as often,” Patrick De Haan, head of petroleum analysis at GasBuddy, told CBS News in 2023. 

Residents around Houston—even just down the street from the San Felipe Street stations—can still get gas for at least 20 cents cheaper. The Exxon at the corner of Willowick and Westheimer roads was charging $4.76 per gallon. 

Thursday’s average price in Houston was roughly $3.81, according to AAA.

According to GasBuddy, residents can still get gas for $3.35 in the Houston area, specifically at the Fuel Depot at 8102 Cullen Blvd. and the AK Express at 6285 Barker Cypress Rd. 

If drivers are willing to head into the Houston suburbs, Gas Buddy reports the cheapest gas is at Kroozin Plus, located at 2717 FM 2218 Rd. in Rosenberg. 

Surging fuel costs can largely be traced back to the U.S.-Israeli war on Iran, which began in late February. 
The conflict has disrupted shipping and reduced oil production across the Middle East, causing an increase in fuel cost nationwide month over month.  

On Wednesday, gas prices hit a new high for the year, at $4.23 per gallon, according to AAA. On Thursday, the average hit $4.30—about seven cents higher than the day before.

In Texas, the average price is about $3.85 as of Thursday, also a seven-cent jump from the day before.