Jeff Guy, a delivery driver for Papa John's pizza, fills his pickup at the Exxon station on Walton Way. The Organization of Petroleum Exporting Countries increased oil production in March, but local saw a price increase at the pumps last week. TODD BENNETT/STAFF

Gasoline prices expected to rise

Web posted May 10, 2000

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By Heidi Coryell
Staff Writer

Prices at the pump have fallen steadily in the past two months as oil-producing nations eased embargoes on crude oil, but that trend is coming to an end.

At least temporarily.

Retailers say wholesale prices are fluctuating at a dizzying pace, reporting recent increases as high as 15 cents. That prompted retailers to pass on their increase to area motorists, who saw a 5 cent spike last week.

``Usually you see a price increase around April. It's just the rule of thumb,'' said Jimmy Holt, chief operating officer for 17 Augusta-area Pump N' Shop/Shell stations. ``And I think you're going to see some more increases (soon).''

Even though retailers are predicting additional price increases in coming days, those fueling up say they believe the cost of gas should be closer to where it was this time last year, when the average price for a gallon of regular unleaded gasoline in Augusta hovered near 97 cents.

``As a businessman, I understand it, but I don't have to like it,'' said Stan Fink, manager of the Antique World Mall on Broad Street. He was fueling up his 1976 Corvette on Tuesday afternoon. ``I think these prices are avoidable because, in my opinion, there's plenty of gas.''

Prices peaked in March at about $1.44 per gallon after a prolonged cutback of crude oil production by the Organization of the Petroleum Exporting Countries. OPEC decided that month to increase crude oil production by 1.7 million barrels a day.

``The supply has increased, and that's good news for summer travel,'' said Judy Reville, division manager of Augusta's AAA. ``We expect a lot of motorists to be traveling by car, even though prices are higher than they were last year.''

The cost of regular unleaded gasoline ranged between $1.27 and $1.33 a gallon Tuesday, about 30 cents higher than gas prices at the same time last year.

AAA predicts that prices will drop throughout the summer as the increase in oil production kicks in. But retailers expect intermittent price increases from wholesalers, which will be passed on to consumers.

Such price increases are driving customers away from brand-name gasoline retailers, such as Exxon and Shell, to discount fuel stations, such as Racetrac, said Walton Way Exxon store manager Azim Naqawe.

Discount gasoline retailer Hess recently sold its Augusta stations to Exxon. Mr. Naqawe said that selling a higher-priced brand while coping with escalating crude oil prices has affected business.

``The customers are not really happy with (the ownership change) because they're not looking for a brand name,'' he said. ``They're looking for the best price.''

Reach Heidi Coryell at (706) 823-3215.