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Old Pumps Can't Pump Up Gas Price

Posted on: Wednesday, 7 September 2005, 12:00 CDT

OKLAHOMA CITY (AP) -- Gas stations that have older model pumps are experiencing difficulties keeping up with rising gas prices. Their pumps are incapable of charging more than $2.99 a gallon.

To get around the problem, the stations Friday received permission from the Oklahoma Corporation Commission to use "half pricing," meaning the pump would read half the sales price, and the cost would be doubled inside the store. For example, $3.10 gasoline would be charged at $1.55 at the pump, but consumers would pay the cashier full price.

"Who would have ever thought prices would get so high we would have to worry about this?" said Vance McSpadden, executive director of the Oklahoma Petroleum Marketers Association.

Gasoline signage rules are established by the Legislature and enforced by the Corporation Commission. The regulations allow the "half pricing" technique as long as the station makes it clear how much the gasoline actually costs, Corporation Commission spokesman Matt Skinner said.

"As long as they have a sign up that is clear that the price is twice what's indicated, it meets our rules. They are required to put up a sign on the pumps, and the sign needs to be readable from 5 feet away."

While the stations received permission to implement the unusual accounting methods, they apparently had not made the changes by Friday evening. McSpadden said most station owners are watching to see what happens with gasoline prices over the weekend.

After an unprecedented surge this week, wholesale gasoline futures prices Friday fell more than 22 cents after Europe promised to send more gasoline and as American pipelines began increasing production.

The International Energy Agency said it would release 2 million barrels a day of crude oil and gasoline from reserves. The move follows the Bush Administration's agreement to loan more than 12 million barrels of oil from the country's Strategic Petroleum Reserves to refineries.

Wall Street also was upbeat Friday as the Colonial Pipeline, which normally carries up to 95 million gallons of refined petroleum products daily from the Gulf Coast refineries to the New York area, reported improved volumes. The artery is operating close to half its capacity and is expected to be closer to 85 percent by early next week.

Despite the improvements, about a dozen key refineries remain off- line nationwide.

Source: Tulsa World

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