Gas Prices Fall as Blame Rises

Kirsten Ballard

As of Friday, June 29, 2012

The recent 15-cent drop in gas prices has Moore County drivers breathing a little easier.

However, it still pays a bit more handsomely — as much as 20 cents a gallon better — to fill up if you’re outside the immediate area.

Moore County prices are considerably lower than earlier this spring when they were scraping the $4-a-gallon threshhold, but the county — especially the southern end — still stands out as having some of the highest gas prices in the state.

So while it’s better to be paying $3.25 a gallon these days in Southern Pines and Pinehurst, you can nevertheless go over to Cameron and find three stations on N.C. 24 offering gas between $3.02 and $3.08 a gallon.

Which begs the question: Why does this area continue to have higher gas prices?

The folks at AAA of the Carolinas, who know plenty about travel, get right to the heart of the discrepancy.

“It’s a lot of rich people playing golf, right? That’s why it’s more expensive,” said Tom Crosby, vice president of communication for AAA of the Carolinas. “If you have more money, they’re going to make you pay more.”

So vacation destinations get soaked, right? Not quite. In Wilmington, a fill-up is going for as low as $3.10 a gallon. And if you’re headed to the mountains, Asheville has some stations under $3.

If your travels call for you to be on the Interstate 85 or 40 corridor, you’ll also find gas at or below $3 a gallon.

Fuel retailers have routinely said they’re not to blame for the price discrepancies. In fact, station owners like Mobil Mart’s Chris Davis said he tries to keep his gas price a few cents lower than his competition. He has recently started buying fuel by the load from supplier Rex Oil.

The change from buying per gallon to the load has allowed Davis to drop his credit card surcharge and stay more competitive with other vendors.

“It’s a better deal,” said Davis. “Pretty much I’m now trying to stay cheaper than everyone else.”

Davis can’t account for the discrepancies in prices outside of the county. “[The prices] are closer than they were though,” he said.

If retailers, who routinely are making about a nickel for every gallon of gas sold, aren’t behind the inflated prices locally, and gas is all the same price once it exits the pipeline and enters storage farms, then the next question to ask is whether fuel wholesalers are behind the cost discrepancies.

Frank McNeill Jr., owner of the McNeill Oil Co. in Aberdeen, did not return phone calls and could not be reached for comment. McNeill owns five local convenience stores in Moore and provides fuel to five others here and in Hoke and Montgomery counties.

Back in February, when gas prices were on the rise, he said that, while he is the sole local distributor, he sells only about a tenth of the gas here. At the time, he said he was making about the same margin as other retailers.

Crosby, with AAA, puts the accountability of price discrepancies with the oil distributors.

“That is a decision,” he said, “made by the 12 companies that own 94 percent of the oil distribution in North and South Carolina.”

So while the blame needle seems to be zeroing in on the big distributors, consumers are left with little to do but enjoy whatever price respite they can.

“I was thrilled this morning when I filled up for $3.25 a gallon,” said Patrick Coughlin, president of the Moore County Chamber of Commerce.

Two factors could be helping to keep the damper on prices:

“Elections,” said Davis as to why the prices have been staying low.

Said Crosby: “Demand worldwide is down. The burden has been eased considerably.”

Coughlin believes that, if gas prices hold steady, consumers will see the impact in other prices as well. When gas prices spike, other products like food also rise because of the added cost of transportation.

“When gas goes back down, organizations are hesitant to mark their prices back down because of the uncertainty,” he said. “Hopefully we’ll see results at the grocery story and pizza delivery guy.

“But I think it will take some time for gas prices to be at that lower level.”

Davis has a better tip for being a well-informed gas consumer: “Watch gasbuddy.com.”

Contact Kirsten Ballard at kirsten@thepilot.com.

More like this story

SH59 10 months, 4 weeks ago

So when prices are high it's Obama's fault but when they drop it's about world wide demand.

Easygoing 10 months, 4 weeks ago

Right, where are those hysterical trolls that blamed all the gas price rise on our President? What a bunch of know nothings. So maybe the reason gas prices are higher locally is that our local distributor is ripping us off. Imagine, it's not Washington, but really local greed.

Toda 10 months, 4 weeks ago

Last weekend I filled up in Graham on my way to Burlington for $2.75 a gallon at Sheetz. I fill up every trip out of town, I know the local distributors doesn't know the difference. It makes me fill good and my bank account as opposed to theirs.

Toda 10 months, 4 weeks ago

Friday I filled up in Tramway (Sanford) for $3.08. I might live in a resort (Aberdeen) but I don't have to pay resort prices. Is Aberdeen still a resort town or is that Pinehurst? Just wondering....

clarabelle 10 months, 4 weeks ago

"SH59 - So when prices are high it's Obama's fault but when they drop it's about world wide demand."

so TRUE ............ but I am certain the looney right will still find a way to justify their silly convictions!

MikeNC 10 months, 4 weeks ago

You many find it surprising Clarabelle, but I'm relieved, period, that prices have come down a bit. Diane

ladyintown 10 months, 4 weeks ago

Gas 2.99 in Fayetteville yesterday....

dustyrhoades 10 months, 4 weeks ago

So when prices are high it's Obama's fault but when they drop it's about world wide demand.

I'm waiting to see how they try to blame the higher gas prices here on the President. You know someone will. Obama Derangement Syndrome is a (literally) raging epidemic around here.

clarabelle 10 months, 4 weeks ago

"MikeNC - You many find it surprising Clarabelle, but I'm relieved, period, that prices have come down a bit. Diane"

As am I Diane. I just wish the silly blame game would stop. Stay cool!

tarheelborn 10 months, 4 weeks ago

I would encourage (Everyone) to go to the website "Voice of N.C." or "North Carolina" Don't get distracted of all the wonderful proven fact filled stories, but scroll down through several pages until you find the story. "Gasoline Prices – Whose to Blame? The story is written by a local retired Oil Executive. He is over 90% correct in his depiction of High Gas Prices!

Everyone speaks of Their Thoughts to why we have such high gas prices. Just remember, our North Carolina Politicians are (ADDICTED) to the TAXES Gasoline sales in North Carolina produce, clearly portrayed at our pumps as one of the highest fuel taxed states in the Nation! Until a VIABLE Alternative Fuel is introduced which MUST be approved by our General Assembly, so IT TOO CAN BE TAXED, than I see nothing changing!

Nevertheless, I filled up in central South Carolina this week with (Regular Gasoline) for $2.29 ! ! ! Nearly every time I do so, I will take the miles driven, divide the amount of gallons from my receipt into that figure, hence I know how well my automobile is performing on the fuel I buy. I have found that the price difference in (Premium/Ethyl) to (Regular) DOES NOT JUSTIFY the extra cost! Some may disagree with me even the author of the story I am referring, but MY Pocket Book tells me otherwise...

When it comes to LOCAL MOORE COUNTY gas prices, it is The McNEILL Company which CONTROLS the Local Market! That is SET IN STONE by the "Petroleum Marketeers of North Carolina" from DECADES AGO ! ! ! Sorry Folks, everyone may see Frank and the McNeill Family as such wonderful people of the community, but Where was he for commenting on this Story?

I'm sure my comments will spark a barrage of criticism. Just READ THE FACTS FOLKS! Then make an EDUCATED DECISION on the subject. I think you will come away with a totally new perspective as to WHY Gasoline Prices are so high, when OIL is SO CHEAP! Really, IT IS CHEAP, but it's all the MIDDLE PEOPLE which are making it HIGH at the Pumps! ! ! !

dustyrhoades 10 months, 4 weeks ago

Let us not forget the people who were predicting a few months ago that gas prices would be 5 dollar a gallon by summer and that that doom the Obama Presidency. Many of the same people were crowing that the ACA would be overturned. It's no coincidence.

lakeview 10 months, 4 weeks ago

" I'm waiting to see how they try to blame the higher gas prices here on the President. You know someone will."

Good thing dumbocrats never blamed Bush (and his oil buddies) and Cheney (and Haliburton) for high gas prices. Someone might think you were being a hypocrite.

MikeNC 10 months, 4 weeks ago

Stay cool, too Clarabelle. They said dew points here in the Sandhills were the highest in the state. Diane PS- I do feel the McNeill Company is price gouging because our area is "dubbed a tourist area" nice family or not.

dustyrhoades 10 months, 4 weeks ago

Someone might think you were being a hypocrite.

Once again,the mind-bogglingly dimwitted lakeview falls flat on his face for shooting off his mouth before engaging his brain. My column written at the time:

http://www2.gosandhills.com/stories/20080727/opinion/columns/20080727dustydrilling.html

This, of course, is absurd. Barack Obama isn't solely responsible for the price of gasoline, any more than George Dubbya Bush is. The current energy mess is the product of years of failures by both Republican and Democratic administrations to realize that we are too darn dependent, not just on foreign oil, but on oil in general as a source of energy.

This you'll note, was a response to a McCain ad in which he blamed Obama for rising gas prices BEFORE HE WAS EVEN ELECTED.

http://jdrhoades.blogspot.com/2008/07/thepilotcom-dusty-rhoades-drilling-more.html

Owned again, lakeview. Don't you ever get tired of being so dumb?

lakeview 10 months, 4 weeks ago

Two insignificant columns verses the numerous times you dumbocrats blamed Bush for high gas prices. Dusty even you aren't stupid enough to believe dems never faulted Bush. Wait, on second thought...

DR, can you honestly tell me the democrats never cast blame of Bush for high gas prices?

clarabelle 10 months, 4 weeks ago

lakeview........ ahhhhhhh never mind......... it would do no good!

dustyrhoades 10 months, 4 weeks ago

You're right clarabelle. You can't fix stupid, especially at the advanced level of stupid that lakeview has attained. He's not even smart enough to know how badly he's embarrassed himself. For instance, a person who was NOT a moron would know that it's the job of the person making the accusation to provide examples.A person who was NOT a moron would know I don't speak for the Democratic party, only myself. But lakeview doesn't know that. Ergo...well, you can make the decision.

by dustyrhoades

dustyrhoades 10 months, 4 weeks ago

Oh, and lakeview: that was one column, not two. I pointed you to the archived blog version of the same column because it contained the video I referenced.

HAHAHAHHAAAA! You just make it too easy, bro.

Now Comes the Part Where We Throw Our Heads Back and Laugh! by MrGreenTea37

dustyrhoades 10 months, 4 weeks ago

What will lakeview do now? Whine about name calling? Go off on another tangent? Call me fat? Whatever it is, you know it'll be hilariously clownish. Stay tuned!

lakeview 10 months, 4 weeks ago

I will sit here and wait out your childish behavior to see if you can answer my original question or if you will continue to avoid it. To refresh your memory, I asked...

DR, can you honestly tell me the democrats never cast blame on Bush for high gas prices??

MikeNC 10 months, 4 weeks ago

Psssttt...Gas was $1.78 per gallon when GW handed the reigns over to Obama...Mike

http://cnsnews.com/news/article/gas-when-bush-left-office-178-gas-today-364-highest-average-price-calif-420

dustyrhoades 10 months, 4 weeks ago

Did some democrats? Probably. But it was ME you called a hypocrite, lake. And it's ME who showed everyone you're a moron.

Bonus question, since you're fond of shooting off your trollish mouth about stuff you know squat about: what was my position on the nomination of John Roberts? Surely you know, since you know everything I believe. Right? C'mon, lakeview, tell me.

dustyrhoades 10 months, 4 weeks ago

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MikeNC 10 months, 4 weeks ago

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JD 10 months, 4 weeks ago

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MikeNC 10 months, 4 weeks ago

Intelligent statement there JD. Now that your chest is all poked out and all...how about disputing what I said above about fossil fuel prices with some factual counter blows...Mike

dustyrhoades 10 months, 4 weeks ago

how about disputing what I said above about fossil fuel prices with some factual counter blows

You really think a statement like You, others and our current president seem to love the chaos that high fossil fuel costs bring to America deserves anything but incredulous laughter followed by savage mockery? Man, you really need psychiatric intervention.

That's not a factual statement. That's a paranoid delusion.

JD 10 months, 4 weeks ago

I just quoted you Di-ke? If it lacks intelligence look to the source of the quote...

skylinefirepest 10 months, 4 weeks ago

Once again, like a liberal loonie broken record, JD alias "juvenile dipstick, calls names when he can't think of an intelligent response to a legitimate question.

JD 10 months, 4 weeks ago

Once again, like a liberal loonie broken record, JD alias "juvenile dipstick, calls names when he can't think of an intelligent response to a legitimate question.

Legitimate question? Where? Oh wait it's Pestilence crying some more. Poor baby.

MikeNC 10 months, 3 weeks ago

Yup...Lots more folks this time around will see through all your name calling and ignoring all the hard economic times that are happening in every American family home. When the economy goes sour like this is bad enough, but when our leaders make it even harder to recover; that is very disheartening. This adminstration has demonstrated time and again it dislikes using fossil fuels in America in favor of squandering tax payers money on nowhere yet ready 'green energy'...and some like you seem to support just that. R&D on green energy...Yes! We have been doing just that by the hundreds of billions since Jimmy Carter, but disgard and demonize abundant, cheap, reliable, job producing, powerful for economic engine growth fossil fuels is plain wrong. And all you guys got is name calling; Some of it disgusting. There is no point in any serious discussion with your side as you do not take such things seriously...Mike