THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: TUESDAY, June 14, 1994 TAG: 9406140367
SECTION: BUSINESS PAGE: D5 EDITION: FINAL
SOURCE: BY GAGE HARTER, STAFF WRITER
DATELINE: 940614 LENGTH: Medium
Call it greed or call it supply and demand. Either way, be prepared to pay more.
{REST} The price of gasoline has risen 2 1/4 cents a gallon nationwide since March, according to a survey by industry analyst Trilby Lundberg. The average cost at the pump, including all grades and taxes, rose from $1.1406 on May 20 to $1.1632 Friday, when the latest Lundberg Survey of 10,000 stations was completed.
The survey found the average price of gas at self-serve pumps was $1.0946 for regular unleaded, $1.2012 for mid-grade unleaded, $1.2851 for premium unleaded. Regular leaded was $1.1283.
Gas prices at several service stations around Hampton Roads seem to be consistent with Lundberg's findings. Local dealers have increased their prices at least 2 cents since Memorial Day.
Some local filling stations have been forced to hike prices because of parent companies' orders, others because they see more profit from the summer demand. Few are making apologies for the increases.
``To me that's business,'' said Pete White, dealer of B&B Exxon. ``At Christmas time, guys sell trees. If there's a demand and the market can bear it, that's capitalism.''
Price increases occur every year, and dealers are severely hampered by company's stranglehold of selling prices, White said. This means that dealers must adjust prices based on how much they are being charged.
Citgo Gas & Food Mart manager Kevin Provow said he raised prices because he has to make six to eight cents a gallon as the middle man. Provow added that Citgo ``pretty much regulates our prices.''
Donna Doyle of Hilltop Shell agrees, saying Shell tells her when to raise the prices. But she adds that many businesses around the area, such as motels and hotels, also raise their prices.
But a spokesman for Exxon USA said the prices just reflect the free market.
``The only thing we say about prices is Exxon sets wholesale prices according to local competitive marketing conditions,'' Les Rogers said.
According to area service station dealers and managers, prices usually don't drop until early August.
One reason prices have notched upward - and why they may remain higher - is the OPEC oil cartel.
With oil prices slowly improving, several OPEC ministers appeared inclined Monday to leave well enough alone and keep crude pumping steady in the coming months.
Arriving early for Wednesday's summer conference, the ministers said the Organization of Petroleum Exporting Countries should keep its tight grip on production.
In an effort to halt the slide in oil prices, the oil exporters last March agreed to cap surging crude production at 24.5 million barrels a day for the rest of the year.
Since then, the nations have generally held to that level and prices have rebounded by nearly $3 a barrel from the five-year lows reached earlier in the year.
by CNB