Gas Stations Feeling Price Pressure

Americans are feeling a lot more pain at the pump as a sudden spike in gas prices has pushed the national average up to $3.57 a gallon, according to AAA.

Idaho appears to be maintaining its lucky streak, with an average of $3.13.

Still, filling up on fuel is breaking the bank for many Idahoans.

When gas stations determine what to charge customers, it’s a bit of a gamble. A local station owner told reporter Jessica Crandall he bases it off of the raw price of fuel and still doesn’t make a profit.

With a gallon of gas costing $4.09 in California, $4.49 in New York and $3.04 in Idaho Falls, prices in eastern Idaho are comparatively low.

But they’re on the climb, and local gas station owners are starting to feel the pressure.

Tom Price, owner of Shaka’s off of Highway 20 near the airport, said he’s actually losing money when customers fill up there.

“Our profit? Our profit is about minus 3 to 4 cents a gallon,” said Price.

He said the price of the fuel coming in to Shaka’s is fixed at about $3.03 a gallon. Price turns around and sells it for $3.06.

You think he’d be making a profit, but add in credit card and transaction fees and he’s in the hole.

Even still, he’s hesitant to raise prices.

“In this kind of business, you have to be competitive or people don’t come,” said Price.

Over at Exxon off of Interstate 15, store attendant Katie Paulsen said even though prices are picking up in our area, out-of-town customers love coming through.

“We have a lot of people coming down from Canada and stuff. They do appreciate the gas prices here in Idaho Falls,” said Paulsen.

Analysts are predicting this may just be the tip of the iceberg.

Senior Analyst for Gasbuddy.com Patrick DeHaan made this statement:

“As we continue to move towards warmer weather, gasoline prices will follow, with prices accelerating higher at a faster pace come late March into April. So, if motorists think this is bad, they should really hold on to their chairs.”