ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Sunday, April 21, 1996 TAG: 9604220056
SECTION: VIRGINIA PAGE: B-1 EDITION: METRO
SOURCE: ELLIOTT SMITH STAFF WRITER
If you're thinking about hitting the road before summer's annual gas-price increase kicks in, think again.
As far as gas prices go, summer is already here.
Gas prices throughout the country have reached their highest level since the 1991 Gulf War, the American Automobile Association reported in its monthly Fuel Gauge Survey. The national average price of self-serve regular unleaded gasoline is $1.24 per gallon, up 11.1 cents from February. Mid-grade is $1.33 per gallon, and premium is $1.41, increases of 6.1 and 5.9 cents, respectively.
In Virginia, regular gas is $1.17 per gallon, up 6.4 cents from March 26. Mid-grade is up 6.5 cents to $1.28, and premium is up 6.3 cents to $1.37.
In the past, price increases have generally been tied to major international events, such as the Persian Gulf War and the oil embargo of the 1970s. But this recent rise can be blamed on Mother Nature, according to Terry Phelps, president of Petroleum Marketers Inc., of Roanoke.
"We had a prolonged and cold winter, which left inventory at a 20-year low," he said. "Demand was up, we had some refinery problems, and all at once prices start to escalate."
Phelps said the sharp rise has come earlier than usual, but prices should begin to level off within a few weeks. However, that's a small consolation to motorists at the pump.
"I've definitely noticed [the rise], and I'm not real pleased about it," said Brenda Sissom, who was filling up at 581 Amoco on Elm Avenue. "It's very frustrating, because we're not into summer vacations yet. But you have to go with the flow."
The higher gas prices also take their toll on gas stations, who don't regulate the price of the gas but receive price increases from wholesale suppliers.
"We're just as shocked as everyone else is," said Phil Boccabella, manager of Bob's Shell on Franklin Road. "We don't have any control over it, and it hurts our business."
"The prices went up the quickest I've ever seen," said Gerald Hager, manager of Williamson Road Chevron.
At Bob's Shell, prices were $1.19 per gallon for regular, $1.29 for mid-grade and $1.39 for premium. At Williamson Road Chevron, prices were $1.15 for regular, $1.25 for mid-grade and $1.35 for premium. Heading toward the airport, prices rose, and at Hollins Texaco, near Hollins College on Williamson, premium gas was $1.45 per gallon.
Phelps said the current gas situation is bad for all parties.
"It's got everyone in turmoil, and it punishes everyone," he said. "We're in the same position as the customer. We've only passed through about 12 to 18 cents of the 21 cent rise, which cuts our profit. The consumer is paying top dollar and is not getting any more gas, and the retailer gets caught between it all."
Retailers have tried to ease the pain of high prices. At Bob's Shell, Boccabella said the company "tries to give something back" to its customers by offering free lollipops, car trash bags and full-service attention at the self-serve pumps. Customers such as Sissom comparison shop to find lower prices and combine errands to reduce gas use. "I never make any unnecessary trips," Sissom said.
AAA also offers tips on how to save money at the pumps, including proper tire inflation, mild acceleration and gradual braking, regular oil checks, limiting air-conditioner use and not idling vehicles.
In a twist on the escalating gas price situation, the American Petroleum Institute announced that gas prices in 1995 were the lowest ever in the 77-year history of recorded pump prices - after adjustments for inflation.
Any way it's added up, however, rising prices concern everyone involved in the gasoline business - including Phelps, who tries to stay optimistic.
"The last few days, things are beginning to level off, so we have our fingers crossed," he said. "Hopefully, the worst is behind us."
LENGTH: Medium: 75 lines ILLUSTRATION: PHOTO: STEPHANIE KLEIN-DAVIS/Staff. Gasoline prices are atby CNBtheir highest point since the Persian Gulf War of 1991.