From Deseret News archives:

Record oil-company earnings haven't trickled down to gas stations

Published: Sunday, May 11, 2008 12:46 a.m. MDT
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The big push on gasoline prices these days is the price of oil itself, she said. "The oil companies and hedge funds are raking it in at our expense, at drivers' expense and the whole economy's expense."

Some gas stations may be increasing the price of gas when they see media reports that futures — oil purchased for a later delivery date — have increased, Dugan said. "Others are responding to their latest delivery. Refiners and the wholesalers who deliver to stations sometimes (send) two price quotes that are different in the same day from the same refiner."

Kevin Wilden has found his niche in a shop next to his Conoco station in Beaver in southern Utah.

He does light repairs such as oil changes and sells tires — although he admits he's not pushy enough to make a good living on tire sales. Four gas stations sell tires in the southern Utah town, and Wilden found he could be competitive selling tires for tractors and other farm equipment.

"It's been a tough market," he said. "I've been here for 30 years. It's been a tough market for 30 years."

Dave Archibald, who leases Jim and Dave's Sinclair in Tremonton in northern Utah, also has a light repair shop, which is the primary source of income for the station.

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"You'd have to sell a lot of Twinkies to try to cover the rent, and in our community, it just doesn't happen," Archibald said.

He has run the station since 1969 and believes these days of high gas prices are the toughest in his career. To keep other expenses low, Archibald works in the shop every day, and his wife runs the convenience store with the help of some part-time employees.

Archibald believes that if the oil prices would stabilize, he could get some relief by not having to constantly raise prices at the pump. In recent months, he has raised prices weekly. In more stable times, he only had to raise the price every three weeks or so.

Michelle Corrigan, owner of Shady Acres Silver Eagle in Green River, offers her customers a 3-cent-per-gallon discount on gas if customers pay in cash.

Customers are increasingly paying with cash to get the discount, and Corrigan is noticing more return customers in the east-central Utah town near the intersection of U.S. 6 and Interstate 70. "They're actually starting to realize we're trying to help them instead of sticking it to them again," she said.

If customers pay cash, they have to pay inside the store. And drawing them inside the store is also helping Shady Acres' profits, because people are buying more goodies.

"We have a really big convenience store, because with the fuel, you're basically making enough to pay for your lights and employees. We put a Blimpie Subs and Salads in there to bring people in more."

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John Bateman, right, waves to Les Winter as Winter drives into the carwash at Slim Olson's in Bountiful. Customers who fill up get a discount on a carwash.

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