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September 14. 2012 7:53PM
Look for prices to fall at pump ... eventually
MANCHESTER — Ask Bill Morin what's going on with gas prices these days, and you'll find out he's as mystified as everyone else.
It's not until Morin, or his son, Bill, check the morning prices on their gas station's computer that they learn whether they bought the last gas delivery before a price hike or after it.
“Monday it was down two cents and the next load was up 10 cents,” said Morin, 81, while pumping gas and scrubbing the rear windows of a van at the family's fourth-generation full-service station at 1091 Valley St. Friday morning.
“Today the prices went down 12 cents per gallon,” explained Bill Jr. “It looks like I'm price gouging, but I'm not. Even if it does go down, I still have to sell off the old load.
“The magic would be trying to schedule our buys on the lower price days, if you could. When gas goes up — the customers ask — and we apologize. What can we do?”
The reasons for fluctuating prices involve several factors, according to Gasbuddy.com's Gregg Laskoski, a senior petroleum analyst.
“It's been a crazy week,” said Laskoski. “The New Hampshire state average on Friday is $3.90 per gallon and that's up 15 cents over a week ago. Part of it has to do with problems refineries experienced from Hurricane Isaac. Even if Isaac had never materialized, a document from the Department of Energy on Wednesday shows that national wide refinery output is only at 86.1 percent, which is a reduction of five percent of capacity.”
Other factors that influence gas prices include the time to get the refineries back up and fully functional, tensions in the Middle East and the recent stimulus plan announced by Federal Reserve Chairman Ben Bernanke whose move devalued the U.S. dollar, Laskosi said.
“The good news is as we get into mid-September, refiners can put the winter blend that is cheaper to produce into the market,” Laskoski added. “It has to be made available no later than Oct. 1.
“Some 10 to 12 refineries were closed for safety reasons,” he added. “They're not like a mom and pop store where you just shut off the lights and lock the door. It takes a while to get them back up to speed. Each off-shore rig or refinery is a huge operation unto itself. They also produce diesel and jet fuel, not just gasoline.”
Another problem Morin encounters is that some customers believe the retailer receives the entire price that's posted on the pump. “I wish we did, but we don't,” he laughed. “Most full-service retailers only make 5 to 10 cents per gallon. A self-serve station typically gets 3 to 5 cents per gallon. We don't make that much. We can't make money per gallon, volume is what we do it on.”
New Hampshire motorists make take solace in having the lowest regional combined federal and state gas tax of just 38 cents per gallon Laskoski said. The neighboring states of Maine (49.9 cents) and Vermont (45.4 cents) are much higher. New Jersey has the lowest combined tax rate in the US at 32.9 cents per gallon while New York (67.4 cents) and Connecticut (71 cents) are among the highest nationally. The federal tax has remained at 18.4 cents in every state for many years, he said.
Nick Wallner, AAA Northern New England spokesperson in Concord, agrees that consumers should see the downward trend to gas prices soon.
“We've been through this before,” Wallner said in a telephone interview. “All the factors are contributing to the downward trend. It's kind of like a 'Slinky' where it takes a while to see the impact … there's a delaying factor.”
Manchester's Cindy Lavigne said prices haven't changed her driving habits, ferrying her twin girls in her 2001 Chrysler Town & Country minivan with 135,000 miles on the odometer. “I take the kids wherever I have to. I can't change the vehicle … I need the space for the kids and their activities. I feel most people just deal with the prices — we have to drive to work and get on with our lives.”
However she thinks the pump prices are controlled. “I think the prices are political. I don't think we'll see a change until after the election. They'll go down when there's a new President.
Concord resident Mike Murphy did change his vehicle and noticed a difference after trading his 2006 Ford Taurus for a smaller, more economical 2011 Honda Civic.
“I downsized strictly to get a car that I can beat the heck out of and save on gas,” Murphy said. “It's one of the most efficient gas consuming cars. Something I know that traditionally gets good gas mileage. Big part of my day is 2 hours driving to commute round-trip to work on the Seacoast.
“Gas prices haven't changed what I do each day,” Murphy said. “My mindset is that gas prices have been an issue for years. It now takes about $20 bucks to fill my gas tank. If prices lower, it'd make life a lot better.
At Morin's, life is a steady hum of business. Bill Sr. and Jr. greet customers by name. The familiar ding-ding of a bell resulting from a car rolling over the hose near the pumps to sound a car has pulled up while the whir of air guns punctuate the air. There is constant motion, almost orchestrated and at a pace everyone seems to follow almost automatically.
“At a self-service station, they don't meet the people,” Bill says emphatically. “They sit in a booth and they don't know anyone. They don't know if you're sick or ask about the wife or the kids or you. They don't know you.
“Here, we have service bays and two mechanics, my son, and me, and the granddaughter, she comes in and does the books. We do more than just sell gas.
“I've had people here going back 4 generations now. I like to ask my customers 'how's this one?, and how's that one? … that's what I like. I could be sitting at home or working maybe bagging groceries but I like this. I get to meet the people I know and take care of them.”
“When gas goes up — the customers ask — and we apologize. What can we do?”
Morin leaves the conversation to greet another customer.
gmiles@unionleader.com
It's not until Morin, or his son, Bill, check the morning prices on their gas station's computer that they learn whether they bought the last gas delivery before a price hike or after it.
“Monday it was down two cents and the next load was up 10 cents,” said Morin, 81, while pumping gas and scrubbing the rear windows of a van at the family's fourth-generation full-service station at 1091 Valley St. Friday morning.
“Today the prices went down 12 cents per gallon,” explained Bill Jr. “It looks like I'm price gouging, but I'm not. Even if it does go down, I still have to sell off the old load.
“The magic would be trying to schedule our buys on the lower price days, if you could. When gas goes up — the customers ask — and we apologize. What can we do?”
The reasons for fluctuating prices involve several factors, according to Gasbuddy.com's Gregg Laskoski, a senior petroleum analyst.
“It's been a crazy week,” said Laskoski. “The New Hampshire state average on Friday is $3.90 per gallon and that's up 15 cents over a week ago. Part of it has to do with problems refineries experienced from Hurricane Isaac. Even if Isaac had never materialized, a document from the Department of Energy on Wednesday shows that national wide refinery output is only at 86.1 percent, which is a reduction of five percent of capacity.”
Other factors that influence gas prices include the time to get the refineries back up and fully functional, tensions in the Middle East and the recent stimulus plan announced by Federal Reserve Chairman Ben Bernanke whose move devalued the U.S. dollar, Laskosi said.
“The good news is as we get into mid-September, refiners can put the winter blend that is cheaper to produce into the market,” Laskoski added. “It has to be made available no later than Oct. 1.
“Some 10 to 12 refineries were closed for safety reasons,” he added. “They're not like a mom and pop store where you just shut off the lights and lock the door. It takes a while to get them back up to speed. Each off-shore rig or refinery is a huge operation unto itself. They also produce diesel and jet fuel, not just gasoline.”
Another problem Morin encounters is that some customers believe the retailer receives the entire price that's posted on the pump. “I wish we did, but we don't,” he laughed. “Most full-service retailers only make 5 to 10 cents per gallon. A self-serve station typically gets 3 to 5 cents per gallon. We don't make that much. We can't make money per gallon, volume is what we do it on.”
New Hampshire motorists make take solace in having the lowest regional combined federal and state gas tax of just 38 cents per gallon Laskoski said. The neighboring states of Maine (49.9 cents) and Vermont (45.4 cents) are much higher. New Jersey has the lowest combined tax rate in the US at 32.9 cents per gallon while New York (67.4 cents) and Connecticut (71 cents) are among the highest nationally. The federal tax has remained at 18.4 cents in every state for many years, he said.
Nick Wallner, AAA Northern New England spokesperson in Concord, agrees that consumers should see the downward trend to gas prices soon.
“We've been through this before,” Wallner said in a telephone interview. “All the factors are contributing to the downward trend. It's kind of like a 'Slinky' where it takes a while to see the impact … there's a delaying factor.”
Manchester's Cindy Lavigne said prices haven't changed her driving habits, ferrying her twin girls in her 2001 Chrysler Town & Country minivan with 135,000 miles on the odometer. “I take the kids wherever I have to. I can't change the vehicle … I need the space for the kids and their activities. I feel most people just deal with the prices — we have to drive to work and get on with our lives.”
However she thinks the pump prices are controlled. “I think the prices are political. I don't think we'll see a change until after the election. They'll go down when there's a new President.
Concord resident Mike Murphy did change his vehicle and noticed a difference after trading his 2006 Ford Taurus for a smaller, more economical 2011 Honda Civic.
“I downsized strictly to get a car that I can beat the heck out of and save on gas,” Murphy said. “It's one of the most efficient gas consuming cars. Something I know that traditionally gets good gas mileage. Big part of my day is 2 hours driving to commute round-trip to work on the Seacoast.
“Gas prices haven't changed what I do each day,” Murphy said. “My mindset is that gas prices have been an issue for years. It now takes about $20 bucks to fill my gas tank. If prices lower, it'd make life a lot better.
At Morin's, life is a steady hum of business. Bill Sr. and Jr. greet customers by name. The familiar ding-ding of a bell resulting from a car rolling over the hose near the pumps to sound a car has pulled up while the whir of air guns punctuate the air. There is constant motion, almost orchestrated and at a pace everyone seems to follow almost automatically.
“At a self-service station, they don't meet the people,” Bill says emphatically. “They sit in a booth and they don't know anyone. They don't know if you're sick or ask about the wife or the kids or you. They don't know you.
“Here, we have service bays and two mechanics, my son, and me, and the granddaughter, she comes in and does the books. We do more than just sell gas.
“I've had people here going back 4 generations now. I like to ask my customers 'how's this one?, and how's that one? … that's what I like. I could be sitting at home or working maybe bagging groceries but I like this. I get to meet the people I know and take care of them.”
“When gas goes up — the customers ask — and we apologize. What can we do?”
Morin leaves the conversation to greet another customer.
gmiles@unionleader.com