Gas-o-lean toward low prices

Posted on 21 October 2014 by admin

Pump up the savings 

By: DALILA KAHVEDZIC

Asst. Art & Life Editor

By: MARISSA DIERCKS
Graphics/In-Depth Editor

With gas prices fluctuating many people may have the simple question of “why?” Having questions answered by students, a gas station manager and employees, this little gas guide might be of help.

Gas prices depend on the price of oil. If the price of oil skyrockets, so will the price of gas to the gallon.

According to the Institute for Energy Research (IER), lowering the price of oil would involve lowering world oil demand and increasing world oil supplies, which is difficult in itself because the U.S. has no ability to effect the oil demand of other countries.

Refining costs play a big role as well. Refining of oil is a process where oil is cracked and formulated into its chemical components, transforming it into gasoline.

Splitting apart the price at the pump, the IER said that oil amounts to about 70 percent of the price at the pump, tax about 13 percent, distribution/marketing 11 percent and the refining costs add up to about 8 percent.

Basically, gas prices are high and will continue to increase because world oil demand growth is outpacing oil supply output.

Lack of refining capacity is a big issue as well because of equipment failure.

Meramec student James Gentry Faust said he pays for gas with cash.He says it’s frustrating.

“I never fill up all the way, I go little by little” Faust said. “I spend too much on gas.”

Meramec student, Andrew Ebert said he pays for gas with his card and fills up all the way.

“It’s annoying because I have to get it on the right day before it goes back up again” Ebert said.

Renee Berry is the manager of the local Phillips on Kirkwood Road. Taking into consideration that there are multiple franchises, this one is run by Petro Mart.

“Our gas is priced by the barrels that come in” Berry said.

“We try to stay competitive and match others. Quik Trip is the market leader so if they go down, we go down. If they go up, we go up,” Berry said.

Phillips receives two tanks of gas weekly, each holding 11,495 gallons. That is 22,990 gallons, or as Berry portrays it, “a lot.”

Meramec student Jamal Hodge works at the Phillips on Kirkwood Road. Many people may know that Phillips charges five cents less if you pay with cash than with a card.

“The five cents off brings more customers. The way that it is set up is we can’t give a discount with cards,” Hodge said.

Not all Phillips gas stations are like this, though. Some have the five cent discount, some do not.

“Since there are multiple franchises, other stores have different ways to do it,” Hodge said.

gas prices

 

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