This paper models and estimates the gasoline price dispersion across time and space by using a unique data set at the gas-station level within the U.S.. Nationwide e¤ects (measured by time ...xed e¤ects or crude oil prices) explain up to about 51% of the gasoline price dispersion across stations. Re...nery-speci...c costs, which have been ignored in the literature due to using local data sets within the U.S., contribute up to another 33% to the price dispersion. While state taxes explain about

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... 2% of the price dispersion, spatial factors such as local agglomeration externalities, land prices, distribution costs of gasoline explain up to about 4%. The contribution of brand-speci...c factors is relatively minor. JEL Classi...cation: L11, L81, R32, R41,