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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

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mikesr100 Champion Author Sacramento Posts:3,888 Points:1,079,760 Joined:Apr 2008	Message Posted: Sep 21, 2012 11:29:34 AM Ignore mikesr100 Report Abuse OK
RapMassaG Champion Author Cincinnati Posts:2,619 Points:1,051,625 Joined:Oct 2008	Message Posted: Sep 21, 2012 7:37:31 AM Ignore RapMassaG Report Abuse 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....
jrs4125 Champion Author Indiana Posts:2,753 Points:590,770 Joined:Sep 2011	Message Posted: Sep 21, 2012 6:50:01 AM Ignore jrs4125 Report Abuse Dooooooooh
remay Champion Author Houston Posts:6,963 Points:2,116,640 Joined:May 2006	Message Posted: Sep 21, 2012 5:40:46 AM Ignore remay Report Abuse There are Shell's around here that are 30c higher than OTHER Shells. Makes NO sense.
comprof Champion Author Houston Posts:6,854 Points:1,355,775 Joined:Jul 2009	Message Posted: Sep 21, 2012 3:32:07 AM Ignore comprof Report Abuse If you do not like the price, do not buy.
Dodge_Me Champion Author Atlanta Posts:2,214 Points:555,480 Joined:Mar 2006	Message Posted: Sep 21, 2012 12:15:51 AM Ignore Dodge_Me Report Abuse 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.
rollercoaster All-Star Author Hartford Posts:502 Points:567,660 Joined:Jul 2008	Message Posted: Sep 20, 2012 11:21:50 PM Ignore rollercoaster Report Abuse boycott !!!
matthwbar Champion Author Toledo Posts:4,058 Points:1,016,830 Joined:Jun 2007	Message Posted: Sep 20, 2012 11:21:19 PM Ignore matthwbar Report Abuse It sucks being an independent...
NightMagic Champion Author Cincinnati Posts:57,105 Points:2,412,410 Joined:Sep 2006	Message Posted: Sep 20, 2012 11:18:02 PM Ignore NightMagic Report Abuse 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.
gaspumpin Champion Author Indiana Posts:1,665 Points:387,505 Joined:Apr 2012	Message Posted: Sep 20, 2012 11:15:08 PM Ignore gaspumpin Report Abuse 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.
rahcat Champion Author Grand Rapids Posts:2,463 Points:661,975 Joined:Jan 2010	Message Posted: Sep 20, 2012 11:11:44 PM Ignore rahcat Report Abuse Boycott this jerk.
judgemobile Champion Author Ohio Posts:7,565 Points:2,444,160 Joined:Nov 2005	Message Posted: Sep 20, 2012 11:09:38 PM Ignore judgemobile Report Abuse how can other stations in the same state (thus same tax rates) make money when their prices are 40-50 cents lower per gallon ?
CarolinaDragon Champion Author South Carolina Posts:6,502 Points:736,735 Joined:Oct 2009	Message Posted: Sep 20, 2012 11:08:56 PM Ignore CarolinaDragon Report Abuse 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.
judgemobile Champion Author Ohio Posts:7,565 Points:2,444,160 Joined:Nov 2005	Message Posted: Sep 20, 2012 11:07:27 PM Ignore judgemobile Report Abuse why does he not release copies of his last THREE invoices as proof ???
1fulltank Champion Author Buffalo Posts:7,898 Points:1,543,335 Joined:Nov 2008	Message Posted: Sep 20, 2012 11:04:43 PM Ignore 1fulltank Report Abuse All have the choice to buy elsewhere.
JimL1 Champion Author Phoenix Posts:8,217 Points:1,241,520 Joined:Jul 2003	Message Posted: Sep 20, 2012 11:03:57 PM Ignore JimL1 Report Abuse 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.
koikaze Veteran Author Sacramento Posts:397 Points:110,300 Joined:Aug 2011	Message Posted: Sep 20, 2012 11:02:42 PM Ignore koikaze Report Abuse 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]
T-birdGuy Champion Author Buffalo Posts:17,737 Points:2,723,165 Joined:Mar 2004	Message Posted: Sep 20, 2012 10:59:00 PM Ignore T-birdGuy Report Abuse O.K.
judgemobile Champion Author Ohio Posts:7,565 Points:2,444,160 Joined:Nov 2005	Message Posted: Sep 20, 2012 10:54:57 PM Ignore judgemobile Report Abuse if his wholesale cost is $ 4.00 a gallon, let him make public the last 3 invoices where he paid his supplier.
judgemobile Champion Author Ohio Posts:7,565 Points:2,444,160 Joined:Nov 2005	Message Posted: Sep 20, 2012 10:53:42 PM Ignore judgemobile Report Abuse his cost is NOT $ 4.00, the wholesale price is about or just under $ 3.00
goodbuy Champion Author Michigan Posts:7,663 Points:1,421,005 Joined:May 2005	Message Posted: Sep 20, 2012 10:52:58 PM Ignore goodbuy Report Abuse Just buy your gasoline elsewhere. DUH!!
jrsva Champion Author Virginia Posts:9,847 Points:1,612,025 Joined:Jan 2006	Message Posted: Sep 20, 2012 10:52:34 PM Ignore jrsva Report Abuse “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.
mstearno Champion Author Dayton Posts:8,061 Points:1,730,260 Joined:Jan 2008	Message Posted: Sep 20, 2012 10:48:36 PM Ignore mstearno Report Abuse as he should
tco9436 Champion Author Connecticut Posts:1,772 Points:721,425 Joined:Mar 2010	Message Posted: Sep 20, 2012 10:48:19 PM Ignore tco9436 Report Abuse Don't care
Cableman66 Champion Author North Carolina Posts:2,110 Points:489,945 Joined:May 2011	Message Posted: Sep 20, 2012 10:47:35 PM Ignore Cableman66 Report Abuse Unless theirs is the only stations in town buy some place else. If they don't pump their out big $$$.
HYEgasCA Champion Author Fresno Posts:2,111 Points:910,000 Joined:Dec 2008	Message Posted: Sep 20, 2012 10:46:44 PM Ignore HYEgasCA Report Abuse 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.
txkrb Champion Author Texas Posts:1,558 Points:638,265 Joined:May 2011	Message Posted: Sep 20, 2012 10:43:23 PM Ignore txkrb Report Abuse 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
Marson Champion Author Scranton Posts:8,937 Points:2,076,960 Joined:Oct 2006	Message Posted: Sep 20, 2012 10:43:21 PM Ignore Marson Report Abuse The station owners are getting squezed unjustly.
SkooterG Champion Author Phoenix Posts:1,359 Points:328,585 Joined:May 2012	Message Posted: Sep 20, 2012 10:42:48 PM Ignore SkooterG Report Abuse Don't buy gas there!!
kymechanic All-Star Author Kentucky Posts:904 Points:572,770 Joined:Mar 2011	Message Posted: Sep 20, 2012 10:42:39 PM Ignore kymechanic Report Abuse Price gouging starts at the top and works its way down.
suzmar Champion Author Texas Posts:2,212 Points:871,865 Joined:Jun 2006	Message Posted: Sep 20, 2012 10:41:34 PM Ignore suzmar Report Abuse I believe the station owners, they do have to meet costs.
drobbbb Champion Author Maryland Posts:3,470 Points:811,260 Joined:Dec 2010	Message Posted: Sep 20, 2012 10:41:13 PM Ignore drobbbb Report Abuse ok
TopGunn Champion Author Baltimore Posts:9,181 Points:2,615,305 Joined:Aug 2004	Message Posted: Sep 20, 2012 10:39:54 PM Ignore TopGunn Report Abuse Seldom is it the retailer doing the gouging. The biggest culprit these days is the middleman - also known as the distributor.
RTR100 Champion Author Knoxville Posts:15,634 Points:3,080,080 Joined:Apr 2004	Message Posted: Sep 20, 2012 10:39:34 PM Ignore RTR100 Report Abuse It is the law of supply and demand. If they are too high, then people will but somewhere else.
tz2001 Veteran Author Virginia Posts:268 Points:318,805 Joined:Sep 2003	Message Posted: Sep 20, 2012 10:39:17 PM Ignore tz2001 Report Abuse 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?
datsundriver Champion Author Houston Posts:6,775 Points:805,085 Joined:Feb 2008	Message Posted: Sep 20, 2012 10:37:57 PM Ignore datsundriver Report Abuse 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) .
kkimes Champion Author Illinois Posts:1,596 Points:1,504,735 Joined:Sep 2005	Message Posted: Sep 20, 2012 10:37:36 PM Ignore kkimes Report Abuse 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.
miser709 Champion Author Grand Rapids Posts:1,268 Points:1,069,050 Joined:Mar 2004	Message Posted: Sep 20, 2012 10:37:01 PM Ignore miser709 Report Abuse Defend your right not to shop there.
Jeeputtputt Champion Author Ohio Posts:3,002 Points:677,465 Joined:Aug 2009	Message Posted: Sep 20, 2012 10:36:09 PM Ignore Jeeputtputt Report Abuse are u kidding???
24541 Champion Author Virginia Posts:1,109 Points:1,792,840 Joined:Mar 2004	Message Posted: Sep 20, 2012 10:34:42 PM Ignore 24541 Report Abuse 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.
Ayeghoti Champion Author Michigan Posts:2,435 Points:346,875 Joined:Aug 2007	Message Posted: Sep 20, 2012 10:28:27 PM Ignore Ayeghoti Report Abuse so avoid the station
PissedATthePump All-Star Author Pennsylvania Posts:507 Points:119,580 Joined:May 2012	Message Posted: Sep 20, 2012 10:26:47 PM Ignore PissedATthePump Report Abuse He can charge what he wants for his gas... ...and he can keep it for all I care.
SavALot Champion Author Virginia Beach Posts:8,464 Points:1,710,635 Joined:Apr 2005	Message Posted: Sep 20, 2012 10:24:13 PM Ignore SavALot Report Abuse Price gouging at its worst [Edited by: SavALot at 9/20/2012 11:24:44 PM EST]
PDQBlues Champion Author San Diego Posts:7,069 Points:1,447,350 Joined:Jan 2009	Message Posted: Sep 20, 2012 10:24:03 PM Ignore PDQBlues Report Abuse "Free market" economics, baby! Love it or leave it.
us4usa Champion Author Missouri Posts:5,984 Points:1,111,375 Joined:May 2008	Message Posted: Sep 20, 2012 10:22:03 PM Ignore us4usa Report Abuse "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...
petrpuck All-Star Author Hamilton Posts:559 Points:417,660 Joined:Nov 2011	Message Posted: Sep 20, 2012 10:18:27 PM Ignore petrpuck Report Abuse rip off
mlambo Champion Author Indiana Posts:12,800 Points:2,688,150 Joined:Mar 2005	Message Posted: Sep 20, 2012 10:17:48 PM Ignore mlambo Report Abuse That is why I never buy Shell gas!
WIPACKERFAN Champion Author Chicago Posts:8,799 Points:1,842,475 Joined:Aug 2005	Message Posted: Sep 20, 2012 10:14:44 PM Ignore WIPACKERFAN Report Abuse Let them charge what they like. You dont need to patronize that business.
EmperorsFinest Champion Author Chicago Posts:1,564 Points:340,870 Joined:Jul 2011	Message Posted: Sep 20, 2012 10:14:14 PM Ignore EmperorsFinest Report Abuse Tubular!
melvindale Champion Author Michigan Posts:1,438 Points:351,230 Joined:Jun 2011	Message Posted: Sep 20, 2012 10:13:24 PM Ignore melvindale Report Abuse 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.