Gas tanks and grocers shelves remain full for the time being
By SUSAN COOPER and SUSAN MARSHALL
Staff writers
Fuel is on the minds of nearly everyone. When will the price increase end — $4, $5, or higher yet?
Unfortunately, local businesses who sell fuel do not control the prices nor are they making excessive money from the increases.
"The local market tells me what price to put on fuel," said Mike Jeffrey, owner of Mike's Service Center of Marion. "My mark-up is eight to 10 cents per gallon higher than what I pay for it."
A shipment is delivered to the locally owned gas station every couple of weeks. When the fuel is dumped, Jeffrey has 10 days to pay the bill.
"I have to pay for fuel that hasn't been sold yet," he said.
Jeffrey purchases his fuel from Cardie Oil Company of Tampa. Cardie Oil Company purchases from a Sinclair refinery in McPherson.
"We don't carry premium unleaded right now because it doesn't sell fast enough for it to pay for itself," Jeffrey said. The station also is out of clear diesel. He plans to order the diesel the next time he orders other fuel.
"A week ago, unleaded fuel cost me $2.74 per gallon. Right now (10 a.m. Friday) it is $3.14 to $3.15 per gallon," Jeffrey said.
Jeffrey has not been notified of fuel rationing but anticipates the refineries will do so in the coming weeks.
"Fuel is not a moneymaker," Jeffrey said, and added a business can actually lose money with fluctuating fuel prices.
Lyman Adams, general manager of Cooperative Grain & Supply and Ampride convenience stores, does not anticipate rationing any time soon.
"Our biggest concern this fall, before the hurricane, was a lot of the refineries in the U.S. are doing 'turnarounds'," Adams said, where refineries will be shut down for six weeks in October to make government-required improvements.
NCRA of McPherson, the co-op's supplier plans to have all barrels filled at the time of the shut down to eliminate any shortages.
"At this time, we don't anticipate having any problems," Adams said.
Adams explained prices are set by the distributor but there is a trading board that can dictate prices.
"We're in a very volatile situation with energy," Adams said.
As far as the co-op side of the business, Adams does not anticipate any changes.
"We're trying to be as efficient as we can be," he said. He is concerned about natural gas costs this winter but doesn't anticipate any changes.
"We'll be here for our customers," Adams said.
How are other businesses faring with fuel prices?
Jerold Vogt of Vogt's Hometown Market of Hillsboro, said he has not experienced cost increases due to transportation costs but has noticed another increase.
"Fuel prices might have helped us locally because people are staying in town and not driving as much," said Vogt.
Rick Turner of Peabody Market agreed.
"We are about 20 miles from Wal-Mart," Turner said. "That's 40 miles round trip. Is it worth the extra money for gas to get there? Are people really saving enough to justify the gas expense?"
Affiliated Foods, Turner's supplier, already has implemented a hike in freight rates.
"They upped the price of our freight a week and a half or two weeks ago," said Turner. "I don't think we've seen the last of that either. The increase they took wasn't huge, but, yeah, eventually it will be passed on to the consumer."
Turner is in the middle of a store expansion. Personnel from Affiliated Foods will assist Turner with merchandising.
"I imagine they will take a good look at our pricing at that time and factor in any increase that affects our bottom dollar," he said.
Dale Franz of Dale's Supermarket of Hillsboro, said current gas prices haven't "hit home" yet.
"I don't think it's hit home yet what gas prices will mean to the pocketbook," said Franz.
He agreed gas prices may keep some in town to shop but is concerned he may lose some customers who come from surrounding towns and areas to shop at his store.
Greg Carlson of Carlsons' Grocery of Marion, said he hasn't seen any noticeable changes or increases due to fuel prices.
"I did have one vendor tell me he may be able to come to the store only one time a week instead of two," Carlson said.
Other store owners agreed some vendors may cut back on the number of trips per week but it won't necessarily mean less supplies.
"They'll just leave more items when they do come," said Franz.
Doug Regnier of Marion Auto Supply, has noticed an increased interest in locking gas caps for vehicles.
In the past week, numerous caps have been purchased or ordered by patrons.
Other retailers throughout the county depend on travel or tourist money being spent. Higher fuel prices eventually may mean fewer travelers supporting local businesses.
