Motorists get a jolt as stations crank up prices at the pump

By Jeff Swiatek

Indianapolis Star

June 8, 2000

Pump prices jumped 20 cents to 25 cents a gallon at many gas stations in central Indiana on Wednesday, shocking motorists and creating fueling bargains for those willing to shop around.

"I'm going to get my other car now," said retired autoworker William Ellis, who was out grocery shopping at noon when he noticed gas prices changing before his eyes. He quickly filled up the car he was driving at a busy Eastside Marathon station, which was underselling its down-the-street rivals by 18 cents a gallon.

Instead of the typical pennies-a-gallon differences among brands, the overnight increase brought pump price disparities of up to 30 cents a gallon at competing stations, as some delayed raising prices to levels that range up to 60 percent higher than a year ago.

Indiana gas prices lagged behind the national average the past two months, so this week's price jump appears to be a matter of catch-up.

It also comes just as summer vacations start, and families hit the road on driving trips.

In early April, Indiana's average price for regular gas stood at $1.39 a gallon, fully 10 cents under the national average. This week's jump bumps Indiana's price up to the national average.

Keith Miller, a district manager for Speedway Petroleum, which cranked up its Indianapolis prices about 20 cents a gallon Wednesday, said increases that big are a matter of corporate edict, perhaps dictated by refineries.

"It's out of our control," he said, standing beside the pumps of one of the Eastside stations he oversees.

Four gas company and petroleum trade group spokesmen did not return calls requesting comment.

"I drove down the street looking for low prices," said Curt Dobbins, who finally found them at a Marathon station on Shadeland Avenue. The station was dispensing regular gas at $1.49, compared to $1.66 at nearby competitors.

Dobbins, a semiretired driver, pumped $23 worth of gas into his van and felt good about it.

"It would have been another $3" at the higher-priced stations he passed up, he said.

The unevenly applied price increase confused some motorists, unused to such a large price gap among stations.

Michelle Brown, a nursing assistant, was unscrewing the gas cap of her Cadillac at an Irvington-area Speedway Petroleum station when she noticed the station across the street offered gas for 10 cents less per gallon.

"I ain't going here. Nooooo, no," she said, replacing the cap and heading to the cheaper alternative.

Indignation was another common reaction among local motorists, who little more than a year ago enjoyed gas prices under $1 a gallon.

"It's outrageous. I can't believe it," said Joe Schuette, a used-car lot attendant who was fueling a pickup at an Eastside gas station. His only consolation: The pickup belonged to his company, not him.

At a Swifty station on Ind. 44 in Shelbyville, motorists griped about the 22-cent overnight jump in prices.

"Oh, we've had complaints all day long," said Jessica Gilles, an attendant.

Miller predicted the price disparity that motorists found Wednesday would quickly disappear.

Pointing across the street to a competitor selling gas 10 cents cheaper than his Speedway, he noted, "You stay around here a few more minutes; he'll change, too."

The manager of a Thornton Oil Corp. station on East Washington Street acknowledged that its lower prices wouldn't last long.

The station's price of $1.43 a gallon for regular drew a crush of customers at midday, but manager Tony Delois was set to raise the price to $1.66 by 4 p.m.

"Everybody else is up to a higher price, and we'll probably have to match them to keep our sanity," he said.

Staff writer Dana Knight contributed to this report.

http://www.starnews.com/news/articles/GAS08.ART.html

-- Martin Thompson (mthom1927@aol.com), June 08, 2000