Retailers React to Gas Price Probe
None by KCPW
(KCPW News)An investigation into Utah's fuel market points the finger at convenience stores. Department of Commerce Director Francine Giani even claims gas stations have been gouging customers. But John Hill of the Utah Petroleum Marketers and Retailers Association says it's unfair to blame small retailers:"They're followers," says Hill. "You don't go below Costco or Wal-Mart, because they will quickly react. They want to be the low-cost provider, so the little guy has learned to follow."
The Department of Commerce investigation does not differentiate between small gas stations, which make up Hill's association, and large chains that may be eligible for bigger volume discounts from refineries.
Department of Commerce Director Francine Giani says both refineries and retailers refused to provide details of their profit margins.
Hill says the average for small retailers of late is about six percent. According to the investigative report, some Utah convenience stores have made several times that during the period of high gas prices.
Email to a friendPosted in KCPW Newsroom. Copyright 2008 KCPW
1. Lennyh Brinkerhoff said:
I agree with a lot of people who wonder why there is talk of oil going up per barrel and the price of gas goes up immediately at the pump. Curious isn't it that when the cost of oil per barrel goes down the reverse doesn't happen as quickly. Also why is the profits by the Oil co.'s so HUGE when they say there is no profit taking from the people?
To quote, "COURAGE: At times it takes significant courage to communicate things that we properly should share. We live in a world of changing values and increasingly, no values at all. While we must always be careful and considerate, we need to take a stand for things we know to be right and against things that we know to be wrong." The frustration enters in when no ones word is good anymore, and we have no clue who is at fault because a lot of corporations cover their rear ends with lies.
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