EconPapers    
Economics at your fingertips  
 

Fuel prices at petrol stations in touristic cities

José Manuel Ordóñez- de-Haro, Jordi Perdiguero () and Juan-Luis Jiménez
Additional contact information
José Manuel Ordóñez- de-Haro: Universidad de Málaga, Spain
Juan-Luis Jiménez: Universidad de Las Palmas de Gran Canaria, Spain

Tourism Economics, 2020, vol. 26, issue 1, 45-69

Abstract: While it may seem obvious from common sense that retail fuel prices should be higher in touristic rather than in nontouristic cities, the related empirical literature has failed either to clearly support this assumption or to qualify and quantify the effect of tourism on retail fuel prices. Using a self-created data set that includes prices across a large sample of petrol stations located in mainland Spain and the Balearic Islands, we seek to evaluate the effects of tourism on local destination retail petrol prices. The estimations prove three main effects: Petrol prices are higher in cities with high levels of tourism, nearby beaches, and/or with the socioeconomic influence of a national park. In fact, petrol stations add a margin of around 6.6% and 6.4% for unleaded gasoline 95 and diesel, respectively, in touristic cities. Second, the more touristic the city, the higher these prices. Third, in the case of touristic municipalities, the percentage of travelers from abroad and being within the area of influence of a national park are two of the main drivers that explain this overpricing.

Keywords: petrol market; Spain; touristic cities; retail fuel prices (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/1354816619828227 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:26:y:2020:i:1:p:45-69

DOI: 10.1177/1354816619828227

Access Statistics for this article

More articles in Tourism Economics
Bibliographic data for series maintained by SAGE Publications ().

 
Page updated 2021-10-10
Handle: RePEc:sae:toueco:v:26:y:2020:i:1:p:45-69