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GREEN — Mary and Jim Flock usually fill up her 2004 Honda Accord at the Love’s Country Store off Interstate 5 when they drive to Roseburg from their Myrtle Creek home. On Tuesday, however, the retired couple bought only a few gallons of gasoline for his 1996 Ford F-250 instead.
At $3.99 and higher, Jim Flock is waiting for Roseburg-area gas prices to fall — at least to cheaper prices like in north Douglas County or Lane County — before he’ll top off his less fuel-efficient vehicle.
“And I don’t think they’ll drop for a while,” he said.
When it comes to prices that are routinely 20 or 30 cents a gallon higher than other places, Roseburg seems to be stuck with a lack of competition and increased transportation costs, according to industry observers.
What Flock and the rest of Roseburg-area drivers really need is a good old-fashioned gas war.
At $3.93, the West Coast has the highest gas prices for the eight United States regions’ AAA averages on a daily basis. The Southwest is selling gas for $3.51.
In Drain the average price is $3.889; in Eugene it’s $3.879; and in Florence it’s $3.637.
In Roseburg, the average price is $4.044; a year ago it was $2.672.
Wesley Wilhite says he’s been baffled for years over gas stations in Florence selling fuel for as much as 40 cents a gallon cheaper than stations in Roseburg.
“That’s nuts,” said Wilhite, a life and health insurance salesman from Roseburg who travels with his wife to Florence about four times a year.
Actually, it might be a deeply entrenched battle among stations in town. Florence has two large retail stores — Safeway and Fred Meyer — and three more “big players” selling gas at cheaper prices to lure customers to their stores, according to a wholesale supplier in Eugene wishing to remain anonymous.
At the Elkton Station in Elkton, a gallon of gas hovers at $3.84.
“We’ve been that way for the last two weeks,” said Debra Marx, who on Sept. 1 will have owned the station for one year with her husband, Don.
With the “driving season” set to culminate this Labor Day weekend, Marx has focused all summer on product turnover rather than profit margin. So they don’t undercut themselves, she receives price quotes each day from their supplier and have steadily increased business with only three pumps and six nozzles. When gas went for $4.30 in Roseburg, the Elkton Station sold it for $3.99.
Refineries convert crude oil into gasoline. The closer a market is to a refinery, the cheaper the gasoline.
Oregon has zero refineries. The state’s gas supply is piped from refineries in Washington’s Puget Sound area to two terminals — one in Portland and the other in Eugene.
“You’re relying on distant supply,” said Doug MacIntyre, a senior oil market analyst with the federal Energy Information Administration, explaining that added transportation costs incur the farther gasoline travels.
Gas prices can be affected by countless reasons. Cities with large populations and more gas stations have cheaper prices because of greater competition, according to Dave Carlson, a public affairs director for AAA.
Roseburg seems to suffer from higher transportation costs and fewer gas stations leading to a dearth of competition, Carlson said.
“This is when oil companies have an upper hand,” he said.
According to Jason Toews, co-founder of www.gasbuddy.com in the Midwest, the parent organization of www.oregongasprices.com, which is updated by volunteers, it’s not unusual to see gas prices vary as much as 40 cents in all 50 states.
“It’s fairly common across the country,” Toews added.
Fierce competition between stores can help drive gas prices down, Toews said. He calls stores that sell gas below cost “loss leaders.” They drive people inside to make up the difference and profit with other products.
Jolene Cugley shops around town before filling up her farm truck’s 28-gallon diesel tank. But on Tuesday she was riding on fumes in her 2003 Ford F-250, so she whipped her rig into Love’s Country Store off the freeway to replenish with $105 of diesel.
At $3.99 and higher, Jim Flock is waiting for Roseburg-area gas prices to fall — at least to cheaper prices like in north Douglas County or Lane County — before he’ll top off his less fuel-efficient vehicle.
“And I don’t think they’ll drop for a while,” he said.
When it comes to prices that are routinely 20 or 30 cents a gallon higher than other places, Roseburg seems to be stuck with a lack of competition and increased transportation costs, according to industry observers.
What Flock and the rest of Roseburg-area drivers really need is a good old-fashioned gas war.
At $3.93, the West Coast has the highest gas prices for the eight United States regions’ AAA averages on a daily basis. The Southwest is selling gas for $3.51.
In Drain the average price is $3.889; in Eugene it’s $3.879; and in Florence it’s $3.637.
In Roseburg, the average price is $4.044; a year ago it was $2.672.
Wesley Wilhite says he’s been baffled for years over gas stations in Florence selling fuel for as much as 40 cents a gallon cheaper than stations in Roseburg.
“That’s nuts,” said Wilhite, a life and health insurance salesman from Roseburg who travels with his wife to Florence about four times a year.
Actually, it might be a deeply entrenched battle among stations in town. Florence has two large retail stores — Safeway and Fred Meyer — and three more “big players” selling gas at cheaper prices to lure customers to their stores, according to a wholesale supplier in Eugene wishing to remain anonymous.
At the Elkton Station in Elkton, a gallon of gas hovers at $3.84.
“We’ve been that way for the last two weeks,” said Debra Marx, who on Sept. 1 will have owned the station for one year with her husband, Don.
With the “driving season” set to culminate this Labor Day weekend, Marx has focused all summer on product turnover rather than profit margin. So they don’t undercut themselves, she receives price quotes each day from their supplier and have steadily increased business with only three pumps and six nozzles. When gas went for $4.30 in Roseburg, the Elkton Station sold it for $3.99.
Refineries convert crude oil into gasoline. The closer a market is to a refinery, the cheaper the gasoline.
Oregon has zero refineries. The state’s gas supply is piped from refineries in Washington’s Puget Sound area to two terminals — one in Portland and the other in Eugene.
“You’re relying on distant supply,” said Doug MacIntyre, a senior oil market analyst with the federal Energy Information Administration, explaining that added transportation costs incur the farther gasoline travels.
Gas prices can be affected by countless reasons. Cities with large populations and more gas stations have cheaper prices because of greater competition, according to Dave Carlson, a public affairs director for AAA.
Roseburg seems to suffer from higher transportation costs and fewer gas stations leading to a dearth of competition, Carlson said.
“This is when oil companies have an upper hand,” he said.
According to Jason Toews, co-founder of www.gasbuddy.com in the Midwest, the parent organization of www.oregongasprices.com, which is updated by volunteers, it’s not unusual to see gas prices vary as much as 40 cents in all 50 states.
“It’s fairly common across the country,” Toews added.
Fierce competition between stores can help drive gas prices down, Toews said. He calls stores that sell gas below cost “loss leaders.” They drive people inside to make up the difference and profit with other products.
Jolene Cugley shops around town before filling up her farm truck’s 28-gallon diesel tank. But on Tuesday she was riding on fumes in her 2003 Ford F-250, so she whipped her rig into Love’s Country Store off the freeway to replenish with $105 of diesel.
Cugley, who usually buys diesel at Safeway in Roseburg after accruing fuel discounts for buying groceries there, said she looks forward to the day Costco sells diesel in Roseburg and helps drive fuel prices down all around.
“It’s what I’m hoping for,” Cugley said.
• You can reach reporter Adam Pearson at 957-4213 or by e-mail at apearson@nrtoday.com.
“It’s what I’m hoping for,” Cugley said.
• You can reach reporter Adam Pearson at 957-4213 or by e-mail at apearson@nrtoday.com.
