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High Gas Prices Hurt Service Station Owner

DALLAS Mar 18 -- In his three decades at the corner of Audelia and Kingsley, Texaco station owner Reg Baker has never sold gasoline this expensive.

"It's killing me," Baker says. "We're dying out here."

What adds to his frustration is that he must charge more than competitors on this corner, because he provides full service, hires a staff of mechanics and sells name brand gas.

Baker's gasoline sells for $1.53 a gallon. The self serve station charges $1.49. Cut rate gas goes for six cents less than that.

"We are trying to hold the margins as tight as possible to be competitive with the discounters," Baker explained. "As my supplier goes up, I have to go up as well."

Baker is selling about 15,000 gallons less per month because motorists are going to discounters  or they're driving less.

His customers are also frustrated. "It's a bummer, but what choice do you have when you need gas?" asked motorist Carol McKinney of Dallas.

Frustration is turning into a political nightmare for the Clinton administration. In his weekly radio address, the president conceded he has no quick solutions, but he has asked OPEC countries to increase production, which should bring down prices.

The President also proposes:

tax breaks for domestic oil companies to encourage increased production tax credits for companies developing alternative fuels President Clinton says he will consider releasing oil from the Strategic Petroleum Reserve after he sees what OPEC does on March 27. But even if OPEC increases production within the next few weeks, that oil won't to reach U.S. markets for another few months. that means prices aren't expected to fall anytime soon.

Reg Baker says he's counting on his busy repair business and loyal patrons who value a full-service station to keep him going until gas prices moderate.

"It would hurt me if he went out of business, because I rely on somebody close to take care of my cars," said Karen Callaway.

While Baker often thinks government interferes too much, he welcomes any assistance from Washington this time. "If they can help us, I'm all for it," he said.

The president said he will also ask Congress to create a heating oil reserve in the Northeast and to have it operating by next winter

http://www.wfaa.com/wfaa/articledisplay/0,1014,5990,00.html

-- Martin Thompson (mthom1927@aol.com), March 18, 2000