High gas prices not a boon to station owners
By Sylvie Belmond belmond@theacorn.com

Gasoline prices are creeping up again, and as the total at the pump flashes past the $50 mark, local drivers may wonder where all the money is going.

Many people blame the war in Iraq, the oil companies and President George W. Bush.

Others express their frustration to local gas station operators, making nasty comments or giving dirty looks to employees and owners.

"Customers are upset because

'All you have to do

is look at the quarterly profits of

oil companies.'

- Tony Gill

of high prices," said Sief Yosef, manager of the 76 station at the intersection of Spring Road and High Street.

Yosef tells of a recent morning when his first customer was rude and demanded full service- he wanted his windows washed by the attendant because gas is so expensive.

"People ask why prices are so high and they're upset with the owner of the station because they don't understand. They think he's making a lot of money but that isn't true," said Jose Murrello, manager of the Alliance gas station on Los Angeles Avenue and Moorpark Road.

"All you have to do is look at the quarterly profits of oil companies," said Tony Gill, owner of the Alliance station. Retailers cannot charge whatever they want, and they're limited by the competition, he said.

Most stations make an average of 4 to 6 cents per gallon sold. When wholesale prices go up, retail profits go down, said Yosef, who has worked at the station since 1977.

Mostly, profits are generated in the store when people buy snacks and drinks, the station operators said.

When gas prices are high, fewer people stop into the minimart to buy these items because all their money is spent on fuel, Yosef said.

"It's not cheap to operate a gas station because many government agencies regulate the business. Environmental health and air pollution controls require expensive equipment that is (also) expensive to maintain," said Gill.

Price increases are also linked to supply and demand as consumers in China and India and other developing countries use more oil than ever.

Ever since the war in Iraq began, fuel prices have increased, said truck driver Valentine Martinez, who was pumping gas in downtown Moorpark.

"Somebody's responsible. Maybe Mr. Bush and his clan should be doing something for people instead of wasting millions of dollars to send space probes to Jupiter," said Moorpark resident Victor Gutierrez at the pump Tuesday morning.

In 2005 the price of crude oil averaged $50 a barrel. As of last Tuesday, the same barrel settled at about $95 on the New York Mercantile Exchange. Barrels of crude were at an all-time high of $99.29 a week earlier.

According to the Department of Energy, the cost of producing and delivering gasoline to consumers includes many factors, including federal, state and local taxes. Charges for crude oil to refiners, refinery processing, marketing and distribution, and retail station costs all affect prices at the pump.

Retail gas prices are also based on the retailer's purchase cost for the product and the other costs of operating the service station. Local market conditions such as the desirability of the station's location and the marketing strategy of the owner also have an impact on prices, according to the Energy Information Administrationt.