Gas stations face long summer

Kenny Forry used to need three 8,700-gallon tankers a week to supply his gas station. Since gas prices went up, he's only needed two.

Forry, owner of Forry's East York Exxon Servicenter and Towing at 3607 E. Market St., thinks the worst is yet to come.

He's not alone. Most local gasoline

Although disgruntled consumers draw the most attention, service station owners and managers are experiencing a financial pinch from rising fuel prices, too. Several businesses said both their profits and units of gasoline sold have suffered, compared with last year's figures around this time.

Forty noted his shop's sales are noticeably down this month and last - 30,000 fewer gallons were sold this June compared with June 1999. He believes the gas price surge will not stop until a gallon of unleaded fuel reaches $2 throughout Central Pennsylvania.

"It seems like people are limiting the runs they make to fill up. I'm just glad I have the garage for state inspections and oil changes to keep myself afloat. I don't know how some others do it."

While drivers might think higher gas prices mean more money for station owners, the opposite is true, according to people in the industry. The profit margin per gallon of all grades of gasoline ranges between zero and 5 cents, and stations often give up some profit to stay competitive.

Scott Hartman, vice president of

operations for Rutter's Farm Stores, Manchester Township, called Central Pennsylvania "one of the most competitive areas in the country for probably the single most competitive product."

"When costs are constantly going up on the streets, as they have been, retailers' profit margins get squeezed," Hartman explained, though he declined to say how his chain stores have been affected. "The rising cost of gasoline has had a negative impact on gas providers in the last 12 months - the pennies-per-gallon profit in 2000 is less than in years past."

Yet, not all gasoline marketers believed the increased costs at the pump have adversely affected the business.

Brett Hoffmaster, vice president and general manager of the 69 Shipley stores in Pennsylvania and Maryland, said the summer driving season is strong as usual.

"The number of gallons doesn't change with prices," he added. "We all need to buy gasoline, and we still have very low prices compared with other countries." He, too, declined to discuss figures, though.

Tina Yuber, manager of Exxon Spring Grove at 502 N. Main St., said her station sold 74,000 fewer gallons this June than in June 1999. When Yuber reflected further, she realized that the station's gas sales have struggled recently after what she maintained was a strong winter.

Jodie Farrar, manager of the Route 30 West Sicoserve at 4330 W. Market St., York, said sales are "way down" at her store from June of 1999, when it sold 7,000 more gallons of gasoline. She said her station lost money when fuel prices were fluctuating rapidly two or three weeks ago because the station stocked up on gas at a set price. Then, the promise of talks by the Organization of Petroleum Exporting Countries (OPEC), caused prices to drop.

The OPEC talks later fizzled.

Michelle Gladfelter, manager of Sunoco A-Plus at 150 Leader Heights Road, York, said her station has not been hurt by the high prices; it has been averaging $9,000-$l1,000 per day in gas sales alone since May, she said.

Despite recent news that Saudi Arabia, a key player in OPEC, plans to increase its oil output to the United States by about 500,000 barrels per day - a move many hope will bring the cost of a barrel down in the United States from $30 to $25 industry analysts warned it may take several months for the effects to ripple through the market.

With crude oil prices at their highest levels since the Persian Gulf War and the East Coast's average gas price as high as $1.589 per gallon on July 3 after the fourth straight week of increases here - service station chiefs admitted they're not expecting relief anytime soon.

Hoping to cash in, Priceline.com, a company that is quickly becoming a household name courtesy of spokesman William Shatner's television spots, has begun offering its users an opportunity to save on gasoline. Users simply log on, order a blue Priceline gasoline card, propose a per-gallon figure they are willing to pay at local stations and wait 60 seconds to hear if the offer is accepted. If and when it is, customers can select how much to prepay. The site boasts, "Get ready to save up to 20 cents a gallon, and maybe more!"

Although fairly new, the cards have popped up in several local gas stations. Although Rutter's honors the cards, Hartman warned there is more than meets the eye to these cards.

"The consumer has to typically agree to do something else, like change long distance telephone carriers, buy magazines, etc.," he said. "These deals are not cut-and-dried."

Marc Green, owner of Marc Green's Getty Service Station at 2324 N. George St., York, said he doesn't understand the Priceline gas cards and refuses to honor them.