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Gas prices hit $9 in New Jersey, Pennsylvania, in protest


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#1 Hum

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Posted 13 September 2012 - 13:41

More than 50 gas stations in New Jersey and Pennsylvania are jacking up prices to more than $9 a gallon to protest what they say are unfair pricing practices by Lukoil North America.

Sal Risalvato of the New Jersey Gasoline, Convenience, Automotive Association said Wednesday's protest is aimed at getting Lukoil to respond to dealers' grievances.

Fox affiliate WNYW reports that a station in South Plainfield, N.J., had signs listing regular gas for $8.99 a gallon and premium listed at $9.49 a gallon for cash and $9.59 for credit.

Risalvato said Lukoil engages in various practices that force franchisees to pay higher prices for their fuel than their competitors.

The New York offices of Lukoil North America said a spokesman was not available for comment.

Lukoil is Russia's second-largest oil producer. The first Lukoil-branded service stations in the U.S. opened in 2003 and today the company has more than 500 Lukoil-branded stations in the Northeast and mid-Atlantic.

source


#2 Brandon

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Posted 13 September 2012 - 16:21

Driving customers away. Makes sense to me.

#3 SHoTTa35

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Posted 13 September 2012 - 16:23

Yup, defintiely makes sense to me. :s

:argh:

#4 ILikeTobacco

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Posted 13 September 2012 - 16:24

View PostBrandon, on 13 September 2012 - 16:21, said:

Driving customers away. Makes sense to me.
Except its being widely publicized that the signs are not the price being charged at the pump, so not likely.

#5 +devHead

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Posted 13 September 2012 - 16:25

Wow, in Bulgaria, Lukoil was consistently cheaper than other places, OMV, Shell, etc.

#6 shakey

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Posted 13 September 2012 - 16:38

We are going to protest overcharging by overcharging!!!!!!

#7 +zhiVago

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Posted 13 September 2012 - 16:41

View PostdevHead, on 13 September 2012 - 16:25, said:

Wow, in Bulgaria, Lukoil was consistently cheaper than other places, OMV, Shell, etc.

Out of 500 gas stations, 50 raised their prices by 100% as a sign of protest.

---

As I understand it, these gas stations are operated by franchisees and their relationship with the franchisor (Lukoil N.A.) is set in their contract, including all the mark-ups and the price determination.

So, if they believe that their contractual rights have been violated they should take it to the court and settle it there. It's just a PR stunt if they don't do this because they probably know that they'd lose the case.

#8 Simon-

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Posted 13 September 2012 - 16:49

Well they are not going much business because they are being forced to be in an uncompetitive situation where they are not getting much business one way or the other.

I got to say $9 per gallon is approximately $2.20 per litre by my rough estimate. That price is about on-par with Europe, even slightly less.

#9 ACTIONpack

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Posted 13 September 2012 - 16:54

Now that's what I call Apple pricing!

Posted Image

#10 +jamieakers

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Posted 13 September 2012 - 17:04

Almost looks like Jobs is holding a petrol pump in that photo!

#11 rippleman

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Posted 13 September 2012 - 17:09

here in canada, gas stations make next-to-nothing on fuel sales, it relies 99% on the sales inside. but still, how do you get people in without them stopping for fuel? damned if you do, damned if you dont

#12 AWKM

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Posted 13 September 2012 - 17:15

Just shows how cheap petrol/gas is in the USA when they can double the price and only just beat the prices seen in a lot of Europe.

Might find no one really gives a rats ass about this "protest"

#13 OP Hum

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Posted 13 September 2012 - 17:31

Who went craZy with the 'tags' ???? :wacko:

#14 Big b0b

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Posted 13 September 2012 - 17:38

FUUUUUUUUUUUUUUUUUUU if gas goes up to 9$/gal I'm switching my car and bike to propane.

#15 ILikeTobacco

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Posted 13 September 2012 - 17:56

View PostHum, on 13 September 2012 - 13:41, said:

Anyone else find it interesting that fox news decided to leave out key details...

http://abcnews.go.co...83#.UFIeFpY17Ww

"However, Kezbari, 46, said the gas station owners are not charging customers those high costs. They are only posting the prices for 24 hours in protest of the franchisees' high costs."