: eon oat . . A8 - The Terrace Standard, Wednesday, October 15, 1997 Gas station owners hurting Prices fell further last week as the gas war raged on By CRIS LEYKAUF GAS PRICES are falling in what is becoming a great deal for vehicle owners. The first drop took place two weeks ago and prices have declined ever since. Prices stabilized for a while at 53.9 cents a litre for regular self-serve, then dropped down another two cents to 51.9 by late last week, a full 10 cents below the pre-gas war price. Tf you have a 40 litre gas tank, that means a savings of $4 every time you filled up. Over the course of a year gas savings would. total $208, if you filled up once a week. The gas war started when the Real Canadian Wholesale Club’s gas sta- tion started dropping prices just after it opened. “We want to be the cheapest in town,’” said Ike Bath, manager of the Wholesale Club’s gas bar. He’s the one who lowered prices another two cents a litre late last week, forcing prices down all over town. The gas bar is also giving customers coupons it can use in the grocery store. There’s a bottom limit somewhere, but Bath won’t say if he’s reached it yet. But he did say that the years of consistent gas prices — something Terrace Terrace Esso station. It’s a full serve, and is al- ready suffering because it doesn't offer self-service. As of late last weck she was keeping her prices at || ° 54,9 for full serve, hoping customer loyalty would keep people coming back. “We feel we're giving good service for the cost — but we’re not getting rich by any means.’’ She thinks her profit margins have been cut by more than 30 per cent. The gas war has spread to Kitimat as well. Stations which were at 61.9 cents a lite for regular self-serve, reacted to the gas war last week by dropping down to 54,9, Gas companies do respond to gas wars, particularly when they spread, That's because when prices drop, gas station owners start looking around for the best wholesale price they can get, explained Donna Kraus- Hagerman from Shell’s head office in Calgary, That forces Shell and other gas companies to lower their prices to buyers in Terrace and Kitimat, in erder to meet market demand. That means lower profit margins for everyone, said Kraus-Hagerman. As for bow long the ~ “There’s not much you can do. You've got to stay competitive’? — Mohawk gas station owner Shawn Olson motorists often complain of —- are probably over." : “‘The company’s philoso- phy is to get less margin and ‘more volume,’’ said Bath, - Gas station owners aren't happy with what has hap- pened. Gino Pretto at the Shell station on Kalum says his profit margin has been cut 25-30 per cent by the downward slide. And he says customers still complain he’s charging more than other stations. Pretto usually charges a penny more a litre for regu- Jar full serve. It’s less than other stations charge for full serve, he pointed out. As of mid-last week, Pretto said he’s only making 2.6 cents a litre profit. He’s worried about the future of his business. “It’s okay for the big guys,” he said, ‘‘but for the little guy — no. Who knows what will happen.”’ Shawn Olson, owner of Terrace Mohawk, admits he’s feeling the pinch, too. ‘There’s not much you can do. You've got to stay competitive,” he said. He thought the price had stabilized at 53.9 for regular self-serve, and was sur- prised to see it go down fur- ther. “It’s good for the cusiomer,”’ he ack- nowledged. Laurene Kelso isn’t sure how much lower she'll be able to drop prices at the “TERRACE STANDARD AT THE PUMPS — Gas station attendant Adrian Auriat fills the tank of another motorist, who like many customers is thrilled with the gas price war, Ike Bath, manager of the Wholesale Club's gas bar, started the price war. He says the :. years. of.consistent prices atthe pumps are at an end, “ ; wholesalers would be wa eas ing to offer gas stations lower prices, she couldn’t say, “‘Competition will dic- tate how long it lasts.” Even with lower wholesale prices, gas sta- tions still get hurt though, said Kelso, from Terrace Esso. That’s because she and other station owners buy tens of thousands of litres at a time ata set price. If com- petition drives the price at the pump lower than what she paid for the gas, Kelso has to eat that cost until she makes her next bulk gas purchase. 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