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August 03, 1979 - Image 5

Resource type:
Michigan Daily, 1979-08-03

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The Michigan Daily-Friday, August 3, 1979-Page 5'
Service stations slowly adjusting pump prices
dicated they would take their time Shell dealer in Detroit who raised his wars. competitive.'
complying. Jihong Yoo, operator of an prices more than a penny for regular "WE'VE ALREADY increased our The new profit margin rule has been
Exxon station in Washington, D.C., said ;nd two cents for unleaded. prices five cents a gallon, so we're at criticized by many dealers' groups,
his price was still 1.8 cents above the Some dealers said they couldn't raise 10.4 cents over wholesale," said Bud who say the margin should be a percen-
limit because no one had bothered to prices to the limit because of com- Wadley, manager of Johnny's Sinclair tage of the wholesale price so that it will
explain the new rules. petition. The easing of the summer's in Jefferson City, Mo. "But we won't go rise proportionately.
And Tom Meeks, who is running supply squeeze has created some price any further, because we want to stay
Jay's Shell in Landover, Md., while his
father is on vacation, said he would not ~
lower prices to comply until he had
talked to his father.
SERVICE STATION operators in
several other states, who asked not to
be named, said they were also taking
their time about lowering prices,
saying they were unfamiliar with the
rules and were in no hurry to lower
But dealers who found themselves r
with a profit margin below the ceiling
were wasting no time in raising prices.
"It's caused a lot of guys in this area
to raise prices," said Bill McIntyre, a
Shell dealer in Louisville, Ky. "I was
able to raise mine.
Mobil in Somerville, Mass., said he
raised prices "a little bit, two cents a
gallon," because of the rule.
"The 15.4 cent margin is a step in the
right direction," said Billie Calloway, a
Area gas
hike prices
(Continued from Page 3)
gallon since last week.
JIM WOLFE, manager of C-Ted
Standard at the corner of Forest and
South University Avenues, said his
prices jumped three cents, not because
of the new price ceiling, but due to
wholesale gas prices.
Wolfe said his current prices are $1.02
per gallon for regular gas and $1.04 er
gallon for unleaded gas, each up three
cents from the figure before the price
ceiling hike.
Wolfe said he favors the ceiling
because "we're getting 72 per cent
allocation (compared to last year's F
amount at this time) and with our rent
raise, where else are we going to make
up the price? It's good in that respect."
station manager Dennis Brewer said
the price ceiling increase was fair
because "it lets the public be aware
that people (gas station owners) can't
make it on" current prices.
Dan Borkholder of Dan's Marathon at
2185 W. Stadium Blvd., whose gas
prices increased 3.5 cents just last JB I ,G K E a RT G
week, said, "They (gas prices) go up so". ,1
fast, it isn't funny."
Borkholder said his current prices""
are 98.9 cents for regular, and $1.03 per
gallon for unleaded.
DAVE CORNISH of Westgate Stan-AL
dard at 2725 Jackson Rd. said he's "not
very happy" with the price ceiling hike.
"It's not enough to take care of the
overhead costs," he complained. "I'm
going to tread water for a month." , ad nh B yJ A S P e by R L A
Cornish said his prices for regular is
$1.02 per gallon and the price per gallon
for unleaded is four cents higher, while
premium goes for $1.10."
FRED'S GULF manager Fred
Roberts said he's happy with the raised
ceiling because it allows him to better
cover the costs of employees' fringe
benefits, such as worker's compen- -214 *.IWnd (rEEKy
sation. He said he can also pay -em- H
ployees more for providing full service,
including checking tires and changing MON-TUE-THUR-FRI 7:25-9:25
the oil. "With everything going up," he
said, "you have to recover that

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