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GasBuddy News Article

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Station owner defends $4.25 gas price

10news -- Think $3.99 is high for a gallon of gas?

Prices are even higher in several parts of the Cincinnati area, such as along Pfeiffer Road in Blue Ash, where a Sunoco station was asking $4.01 for Regular.

But the Tri-State's highest price right now just may be $ 4.25 a gallon for Regular at the Shell on Delta Avenue in Columbia Tusculum.

Gouging?

Despite nasty postings from drivers on GasBuddy.com , station owners Les Sturgill and Allyn Raifstanger insist they're not gouging.

"Our cost right now on unleaded is $4 a gallon, and that's our cost as retailer," Raifstanger said. "We can't afford to lose money on this, we have other expenses we have to take care of."

But drivers are furious, several accusing the two independent gas dealers of gouging in the wake of a hurricane


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Submitted Sep 20, 2012 By: aservant
Category: Daily News Article Discussions > Topics Add to favorite topics  
Author Topic: Station owner defends $4.25 gas price Back to Topics
REPLIES (newest first) Post a Reply
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mikesr100
Champion Author Sacramento

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Message Posted: Sep 21, 2012 12:29:34 PM

OK
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RapMassaG
Champion Author Cincinnati

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Message Posted: Sep 21, 2012 8:37:31 AM

judgemobile

---Yes it was. Remember, the article is a couple of weeks old. At that time, wholesale for the area was near $3.40. Ohio(and KY,IN,IL,WV,MI) are priced based on Chicago spot wholesale, NOT NYH RBOB.
Also, the $3.40 does NOT include taxes,fees, delivery, etc. Taxes and fees bring it to $3.99....
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jrs4125
Champion Author Indiana

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Message Posted: Sep 21, 2012 7:50:01 AM

Dooooooooh
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remay
Champion Author Houston

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Message Posted: Sep 21, 2012 6:40:46 AM

There are Shell's around here that are 30c higher than OTHER Shells. Makes NO sense.
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comprof
Champion Author Houston

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Message Posted: Sep 21, 2012 4:32:07 AM

If you do not like the price, do not buy.
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Dodge_Me
Champion Author Atlanta

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Message Posted: Sep 21, 2012 1:15:51 AM

Sounds like their between a rock and a hard spot. Remember a business is in business to make enough to cover overhead and then to make a profit. Station owners are getting beat up. Not the first time I've heard this, have a couple of owner friends and it is true they do pay a lot for their fuel just like consumers.
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rollercoaster
All-Star Author Hartford

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Message Posted: Sep 21, 2012 12:21:50 AM

boycott !!!
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matthwbar
Champion Author Toledo

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Message Posted: Sep 21, 2012 12:21:19 AM

It sucks being an independent...
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NightMagic
Champion Author Cincinnati

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Message Posted: Sep 21, 2012 12:18:02 AM

I live about 2 miles from that Blue Ash Shell station. It doesn't matter what the going price for gasoline is in the greater Cincinnati area, it is ALWAYS one of the highest price stations (along with other Blue Ash stations) in Cincinnati. The area sees huge amounts of traffic on a daily basis, being less than one mile from I-71. That station has been there for many, many years (20+?, 30+?), and is always busy. On the opposite corner is a Sunoco station which is also priced high, but usually a few cents lower. Every time I pass, it is deserted.
While I never buy gas from either, there must be something that Shell station is doing right to allow it to charge the highest prices around, and still retain its loyal following. Clearly, it is making a profit, or it wouldn't be business this long.
Let me be clear in that I am not defending them for charging the high prices that they do, but if they are getting the business they want, what motivation do they have to reduce their costs so they can reduce their prices? Seems to me that from their point of view, they stumbled onto the right formula for success that most other station operators would kill to have. From a consumer's point of view, if you don't like the price, shop somewhere else, as I do. With GasBuddy's help, you can usually find a station 10-20 cents lower less that 5 miles away in any direction.
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gaspumpin
Champion Author Indiana

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Message Posted: Sep 21, 2012 12:15:08 AM

Go jrsva. Station owners have to meet their costs. If you don't like what they have to offer, there are plenty of other places to go.
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rahcat
Champion Author Grand Rapids

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Message Posted: Sep 21, 2012 12:11:44 AM

Boycott this jerk.
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judgemobile
Champion Author Ohio

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Message Posted: Sep 21, 2012 12:09:38 AM

how can other stations in the same state (thus same tax rates) make money when their prices are 40-50 cents lower per gallon ?
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CarolinaDragon
Champion Author South Carolina

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Message Posted: Sep 21, 2012 12:08:56 AM

As a businessman, I am out to generate revenue. The price at the pump has to pay for the supplier for transport and product, the taxes, the operational costs that allow me to sell the product, the labor working for me, and anything left over that will help my station toward profitability. If you do not like my prices, patronize someone else.

As a customer, I look for the best price available. If a station charges more than I can afford, I go to the station that charges the lowest prices. If I am smart, I will budget in advance for higher costs and fill up when I need to.
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judgemobile
Champion Author Ohio

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Message Posted: Sep 21, 2012 12:07:27 AM

why does he not release copies of his last THREE invoices as proof ???
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1fulltank
Champion Author Buffalo

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Message Posted: Sep 21, 2012 12:04:43 AM

All have the choice to buy elsewhere.
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JimL1
Champion Author Phoenix

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Message Posted: Sep 21, 2012 12:03:57 AM

So it may be the oil companies, the distribution companies, whatever, but the price is still much to high. That simply encourages more people like us to buy more Toyota Prius's, until the money that the feds and the states collect from fuel taxes drops and more services have to be cut and/or the tax rates have to be increased.
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koikaze
Veteran Author Sacramento

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Message Posted: Sep 21, 2012 12:02:42 AM

Another way to look at it..

You can sell gas to 25 people and make 100$

Or

You can sell gas to 10 people and make 100$.

Less work, less maintenance cost, tax cost, insurance cost, but still make the same. We'd all go for the second option in a business sense.

[Edited by: koikaze at 9/21/2012 12:03:25 AM EST]
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T-birdGuy
Champion Author Buffalo

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Message Posted: Sep 20, 2012 11:59:00 PM

O.K.
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judgemobile
Champion Author Ohio

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Message Posted: Sep 20, 2012 11:54:57 PM

if his wholesale cost is $ 4.00 a gallon, let him make public the last 3 invoices where he paid his supplier.
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judgemobile
Champion Author Ohio

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Message Posted: Sep 20, 2012 11:53:42 PM

his cost is NOT $ 4.00, the wholesale price is about or just under $ 3.00
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goodbuy
Champion Author Michigan

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Message Posted: Sep 20, 2012 11:52:58 PM

Just buy your gasoline elsewhere. DUH!!
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jrsva
Champion Author Virginia

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Message Posted: Sep 20, 2012 11:52:34 PM

“I believe the station owners, they do have to meet costs.”

Absolutely. They have to cover costs and drivers have to weigh their options — pay more here or drive a little farther to get it for less. Around here prices range from $3.79 to $4.29 for regular. The lowest prices are at larger stations in town. That high price is for a one-pump general store out in the country and it is for pure gasoline, which has a higher wholesale price than E10. So, if you live near the rural station you pay 50¢ more but get better gas and don’t have to drive 12 or 15 miles into town. Your choice.

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mstearno
Champion Author Dayton

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Message Posted: Sep 20, 2012 11:48:36 PM

as he should
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tco9436
Champion Author Connecticut

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Message Posted: Sep 20, 2012 11:48:19 PM

Don't care
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Cableman66
Champion Author North Carolina

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Message Posted: Sep 20, 2012 11:47:35 PM

Unless theirs is the only stations in town buy some place else. If they don't pump their out big $$$.
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HYEgasCA
Champion Author Fresno

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Message Posted: Sep 20, 2012 11:46:44 PM

Who cares what someone is charging. If you don't like it...tough! Heck I'm in CA paying $4.29 and its not because of hurricanes, but liberal politicians who have been waging war on oil for the last 30 years.
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txkrb
Champion Author Texas

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Message Posted: Sep 20, 2012 11:43:23 PM

The 3.99 wholesale price includes taxes
and if he is charging 4.25 and others are selling for 4.01 he probably is selling very little gas and therefore not making money at 4.25
Sell for 4.18 credit and 4.10 cash, you will sell alot more gas than at 4.25
Plus you have customers coming in a buying drink and snacks then, if they pass you by for cheaper gas you are not selling them drinks and snacks
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Marson
Champion Author Scranton

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Message Posted: Sep 20, 2012 11:43:21 PM

The station owners are getting squezed unjustly.
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SkooterG
Champion Author Phoenix

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Message Posted: Sep 20, 2012 11:42:48 PM

Don't buy gas there!!
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kymechanic
Champion Author Kentucky

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Message Posted: Sep 20, 2012 11:42:39 PM

Price gouging starts at the top and works its way down.
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suzmar
Champion Author Texas

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Message Posted: Sep 20, 2012 11:41:34 PM

I believe the station owners, they do have to meet costs.
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drobbbb
Champion Author Maryland

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Message Posted: Sep 20, 2012 11:41:13 PM

ok
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TopGunn
Champion Author Baltimore

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Message Posted: Sep 20, 2012 11:39:54 PM

Seldom is it the retailer doing the gouging. The biggest culprit these days is the middleman - also known as the distributor.
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RTR100
Champion Author Knoxville

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Message Posted: Sep 20, 2012 11:39:34 PM

It is the law of supply and demand. If they are too high, then people will but somewhere else.
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tz2001
Veteran Author Virginia

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Message Posted: Sep 20, 2012 11:39:17 PM

If you don't like the price, buy it some place else. Would you call it gouging if Lowe's sold a circular saw for 10% more than Home Depot?
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datsundriver
Champion Author Houston

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Message Posted: Sep 20, 2012 11:37:57 PM

operator's margin on gas is so low anymore it is not worth having pumps. wife and I used to own a couple convenience stores. one "drive-off" with a full tank, and there goes the gas profits for the day.

"way back when" when people paid cash or used a gas company credit card that did not charge the station fees, the mark-up was 8-10 cents a gallon. but that was when gas was sold at service stations, not at convenience stores and wal-marts. when was the last time you were at a service station? there are very few left, and yes they do have to charge more than wal-mart or the local stop and rob. and they are probably paying more for a truck-load of gas than wally-world or the chain stores.

right now in houston prices range from $3.22 to $3.99 for unleaded gasahol (no real gasoline available here courtesy of the federal EPA) .
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kkimes
Champion Author Illinois

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Message Posted: Sep 20, 2012 11:37:36 PM

Actually quite common around although it has come down some in the last week. Still, Chicago area is one of the highest in the nation. Still glad I bought a Camry Hybrid.
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miser709
Champion Author Grand Rapids

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Message Posted: Sep 20, 2012 11:37:01 PM

Defend your right not to shop there.
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Jeeputtputt
Champion Author Ohio

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Message Posted: Sep 20, 2012 11:36:09 PM

are u kidding???
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24541
Champion Author Virginia

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Message Posted: Sep 20, 2012 11:34:42 PM

If a nearby station sells it for $4.01, then that is the place to buy it. Let the fellow keep his $4.25 gas.
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Ayeghoti
Champion Author Michigan

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Message Posted: Sep 20, 2012 11:28:27 PM

so avoid the station
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PissedATthePump
All-Star Author Pennsylvania

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Message Posted: Sep 20, 2012 11:26:47 PM

He can charge what he wants for his gas...
...and he can keep it for all I care.
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SavALot
Champion Author Virginia Beach

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Message Posted: Sep 20, 2012 11:24:13 PM

Price gouging at its worst

[Edited by: SavALot at 9/20/2012 11:24:44 PM EST]
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PDQBlues
Champion Author San Diego

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Message Posted: Sep 20, 2012 11:24:03 PM

"Free market" economics, baby! Love it or leave it.
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us4usa
Champion Author Missouri

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Message Posted: Sep 20, 2012 11:22:03 PM

"But the Tri-State's highest price right now just may be $ 4.25 a gallon for Regular at the Shell on Delta Avenue in Columbia Tusculum."

Same in this town Shell is always the first to jack up the prices and the last one to lower prices... This week Shell Diesel is $3.94 everyone else is $3.86... I think the only reason Shell can sells gas, is with folks hooked on Shell gas cards???

We Never buy from Shell even if the prices are the same...
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petrpuck
All-Star Author Hamilton

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Message Posted: Sep 20, 2012 11:18:27 PM

rip off
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mlambo
Champion Author Indiana

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Message Posted: Sep 20, 2012 11:17:48 PM

That is why I never buy Shell gas!
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WIPACKERFAN
Champion Author Chicago

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Message Posted: Sep 20, 2012 11:14:44 PM

Let them charge what they like. You dont need to patronize that business.
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EmperorsFinest
Champion Author Chicago

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Message Posted: Sep 20, 2012 11:14:14 PM

Tubular!
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melvindale
Champion Author Michigan

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Message Posted: Sep 20, 2012 11:13:24 PM

Call the other stations. The $4.01 Sunoco is probably paying $3.91, but could very well be paying the same $4 as the Shell station.

Seriously, if you can get them to say, you will find many stations earning just 1 or 2 cents a gallon, and almost no one making more than 10 cents a gallon, unless they pump it for you.

No one makes 25 cents a gallon. They are gouging, it just sounds small. You will find its not small when you find the 1 cent a gallon station sells 10,000 gallons a day and earns $1000 a day from the cigarettes, beverages, chips, candy, and whatever else they sell. That is the way of the modern gas station. Those that make 10 cents a gallon are only pumping 2000 to 3000 gallons a day, and make somewhat less in the inside store because of the lower traffic flow. The 25 cents a gallon folks I hope he and she don't sell squat, but they probably still sell 2000 gallons a day up to the same 10,000 gallons a day the low price leaders sell. It all depends upon location, location, location. With right location, you will still get enough people in who did not look at the price sign before pulling in. If they are that bad with their money, then they probably buy drinks, smokes, and snacks that are similarly overpriced inside that station.

At least we know none of our Gas Buddies are going to buy their gas for $4.25 when $4.01 is available nearby.

I hope none of us are paying $4.25 any time soon. With gas prices so high when they normally go down, I fear $5 a gallon is in our future before 12 months go by.
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