Published August 19, 2007 12:01 am -
Muskogee gas prices high in area but lower than state, national averages
‘We just need to do something about it,’ customer says
By Keith Purtell
Phoenix Staff Writer
Dennis Parker of Eufaula paid more than $80 earlier this week to fill his pickup tank with gasoline.
And that was at one of the lowest-priced stations in Muskogee.
Like a lot of people, he thinks oil companies are taking advantage of the public.
“It’s price gouging without question,” Parker said. “There was (federal) price control, but I think President Reagan took that away. They’ve got a monopoly. They charge what they can get away with.”
Parker, 63, who runs a demolition business and does some storm chasing, said his business pays a huge amount for fuel.
“I have 12 trucks; some are 2-ton,” he said. “For things that don’t involve hauling, I’m going to get a Volkswagen. I’m not kidding.”
Parker said he sometimes has to pay more for diesel, despite the fact that it is a petroleum by-product that is not as refined as gasoline.
“The American public is aware of what is going on,” he said. “We just need someone to do something about it.”
Parker was paying $2.69 per gallon. According to AAA Oklahoma, the national average on Monday was $2.77, and the Oklahoma average was $2.73.
Charlie Price, spokesman for the Oklahoma Attorney General, said state protection from gas gouging is conditional.
“We have a statute the prohibits price gouging,” he said. “But it only goes into effect when a state of emergency has been declared by the governor or the president.”
According to the Web site www.thegasgame.com, the retail price per gallon is made up of the estimated wholesale price, the estimated retail markup (as much as 20 cents per gallon), a fudge factor (variations of up to 25 cents in the wholesale price), federal tax (18.4 cents per gallon), miscellaneous (middlemen, freight and storage fees of about 3 cents), and the state tax. Credit card sales cost retailers about 3 percent of the retail price, which comes out of their retail markup.
Many skeptics claim that gas prices are manipulated at the source. Although unproven, they charge that unscheduled “maintenance” refinery shutdowns, deliberate closing of refineries, and shipping surplus gasoline offshore are intended to raise prices.