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Prices Fuel Frustration

Posted on: Wednesday, 24 August 2005, 12:00 CDT

Aug. 23--Gas prices are on nearly everyone's mind, with record high prices being set daily across the nation.

Columbus reached a record Saturday, with regular unleaded reaching an average of $2.591, according to AAA's Daily Fuel Gauge Report. The average price in Columbus for regular as of Monday morning was $2.585.

Meanwhile, drivers will see prices drop as they go west from the Georgia-Alabama border. The state average in Georgia is $2.582, while the average in Alabama is $2.535. This is despite Georgia's lower tax on motor fuel; just 12.2 cents per gallon, compared to Alabama's 23 cents per gallon.

Motorists everywhere are beginning to voice displeasure. At Snack Attack at the corner of Manchester Expressway and Armour Road, Dr. Tom Oliver, shook his head in disgust as he paid for Texaco gas and snacks Monday afternoon. Oliver is helping move some family heirlooms from Columbus to Philadelphia in a U-Haul truck.

"It cost $35 for a quarter tank," Oliver said. "You'd think with all we're doing in Iraq we would be bringing some of it back."

Whether or not he's right, Oliver is among many who see the issues of gas prices overflowing into many other national and global topics, including the war in Iraq.

Oliver said gas prices are even affecting his work as a horse track veterinarian in Philadelphia.

Several gas station attendants and managers said Monday that gas drive-offs at their stations have risen along with prices. However, in the past, police have said gas theft is a crime that is hard to quantify, as most attendants don't report all occurrences.

But if scofflaws are lashing out at gas stations in response to high prices, they may be hurting innocents. The profit margins at gas stations are usually 7 to 10 cents per gallon and remain there even when prices fluctuate. This is according to a 2002 report titled, "Gas Prices: How are they really set?" from the U.S. Senate's Permanent Subcommittee on Investigations.

Retail price fluctuations are based on price changes in crude oil and competitor price changes, among other things, the report said.

As for geographical price differences, the report said oil companies are not shy about using "zone pricing" -- or prices that are specific to states, counties, cities or even neighborhoods. Some zones are very stable, while companies will adjust the prices in others to whatever the market will bear, usually based on whatever nearby competition dictates. These adjustments are sometimes made by marketing consultants to see what prices will induce customers to drive to other nearby stations, the report said.

But gas prices still may be more complex than what oil companies dictate. Prices also see regional fluctuation based on their proximity to the Gulf Coast, according to the Energy Information Administration's Web site. Prices in the Gulf Coast States, including Alabama, were 4.8 cents cheaper on average than those on the lower Atlantic Coast, which includes Georgia.

There are still more differences between metro and rural markets. For example, the 45-county metro-Atlanta area has been required since 2004 to use special "boutique gas," which burns more cleanly, said Randy Bly, director of community relations for AAA Auto Club South, in an internal memo shared based on media inquiries. Boutique fuels cost motorists about 8 to 12 cents more per gallon, due to the additives and extra steps required during refining, Bly said.

However, this could mean Atlanta and Columbus would have like fuel prices if boutique fuels weren't mandated by the Environmental Protection Agency. Atlanta's average fuel price on Saturday was $2.613 for regular.

On Monday, Glenn McLendon, Atlanta District Manager of AAA Auto Club, said, "Georgia is out of line, for whatever reason.

"The kicker is, we should be going into a slow time period (of gas use)," McLendon continued. "Prices should be going down, not up."

While sorting out who is making money from high gas prices or why prices are rising is complex, consumer reaction is plain to see.

For instance, as Oliver talks about repeatedly filling his U-Haul's tank for the 930-mile trek to Philly, Rod Puebla squints in anguish behind him. Puebla is moving next week and it's more than 600 miles to the Texas border.

MONDAY'S GAS PRICES IN THE BI-CITY:

Money Back No. 26

2103 Lumpkin Road

Monday: $2.51

Aug. 10: $2.36

-- Money Back No. 7

4499 Warm Springs Road

Monday: $2.59

Aug. 10: $2.31

-- Spectrum Stores No. 124 323-9013 2102 Wynnton Road

Monday: $2.56

Aug. 10: $2.29

-- Spectrum Stores No. 89 653-1422 1801 12th Ave.

Monday: $2.57

Aug. 10: $2.30

-- Spectrum Stores No. 52 561-8202 6900 Beaver Run Road

Monday: $2.59

Aug. 10: $2.32

-- RaceTrac 682-1365 421 Victory Drive

Monday: $2.61

Aug. 10: $2.27

-- Expressway Chevron 323-6560 2705 Manchester

Monday: $2.62

Aug. 10: $2.32

-- 431 Chevron 291-9669 3600 280 Bypass, Phenix City

Monday: $2.64

Aug. 10: $2.34

-- Richard's Big Cat Fuels 298-5585 106 Martin Luther King Jr. Parkway, Phenix City

Monday: $2.55

Aug. 10: $2.30

-- Texaco Food Mart 448-5007 3764 Opelika Road, Phenix City

Monday: $2.58

Aug. 10: $2.30

-- Spectrum Store No. 80 297-2149 3300 U.S. Highway 80 West, Phenix City

Monday: $2.60

Aug. 10: $2.31

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Copyright (c) 2005, Columbus Ledger-Enquirer, Ga.

Distributed by Knight Ridder/Tribune Business News.

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UHAL,

Source: Columbus Ledger-Enquirer

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