The Agua Caliente Band of Cahuilla Indians has opened its second fuel station in Palm Springs, California, offering prices that rival the city's lowest and undercut the state's average. The new Agua Caliente Fuel location, which began selling gas on Saturday, aims to provide a much-needed break for drivers grappling with high fuel costs.
Posted prices on Friday indicated regular unleaded at $5.13 per gallon, mid-grade at $5.38, premium at $5.63, and diesel at $6.03. If these prices hold, they would be tied for the lowest in Palm Springs, according to The Desert Sun. The station is located at the intersection of Dinah Shore Drive and Lawrence Crossley Road.
This new venture follows the success of the tribe's first Agua Caliente Fuel station, which opened near its Rancho Mirage casino in 2021. That location has become known for its competitive pricing, often leading to long lines of customers amid rising gas prices in California, influenced in part by the fallout from the Iran war.
Revenue generated from Agua Caliente Fuel directly supports the tribe's treasury, funding various initiatives including public services, infrastructure development, community programs, and distributions to tribal members. The tax structure for tribal gas stations differs due to tribal sovereignty. While the federal government collects fuel taxes on each gallon sold, California collects minimal tax revenue directly from the fuel itself. Additionally, as entities organized under federal law, the tribe is not mandated to publicly disclose financial records, tax returns, or profit margins to state or federal agencies.
According to GasBuddy, California's average gas price is $5.65 per gallon, making it the highest in the nation and over $1.50 higher than the national average of $4.10. States like Indiana and Texas have significantly lower averages, around $3.56 and $3.59, respectively.
The Palm Springs facility is more than just a gas station. The 9,500-square-foot building includes a convenience store and a 2,900-square-foot gaming area equipped with 90 slot machines, more than double the number at the Rancho Mirage location. The station features 24 fuel pumps.
The tribe plans further expansion, with a third Agua Caliente Fuel station currently under construction between the civic center district and the tribe's casino in Cathedral City. An opening date for this third location has not yet been announced. This expansion contributes to a growing network of tribal-owned gas stations in the Coachella Valley, joining other establishments like Shelee's Travel Center in Coachella and the Morongo Travel Center in Cabazon.