Conventional gas supply runs short MUKWONAGO, June 14  Stations in conventional gas areas have seen business increase 50 to 100 percent as residents try to avoid those sky-high reformulated gas prices. But the conventional gas supply isnt keeping up with the new demand. They're getting truckloads every day and they're still running out. DARWIN GREENWALD Station owner DARWIN GREENWALDS SHELL station in Mukwonago has lost 35 percent of its business because of the price hikes on his reformulated gasoline.

Greenwald says hes in a very bad position, right on the edge of the area where the reformulated gas is required. He says hundreds of his regular customers are driving six miles down the road to buy the much cheaper, conventional gas in Walworth County.

But those drivers flocking to the outlying areas are putting an unusual demand on conventional gas supplies. Motorist Rick Katzung has noticed the trend. There are shortages, I know, in western Wisconsin, Minnesota and Iowa, he said. Suppliers order gas weeks in advance by anticipating the usage. But no one anticipated this.

Greenwald has noticed the trend too, The conventional stations are having problems with supply Because so many people are going over the border to get the conventional gas that they cant keep up. Theyre getting truckloads every day and theyre still running out. So are the main supply terminals on North 107th Street in Milwaukee. BP-Amoco and Mobil suppliers are running low, and U.S. Oil is completely out, except for premium. U.S. Oil doesnt expect more unleaded conventional gas until June 18. That means for CITGO stations in outlying areas, if they havent run out already, they probably will soon. Theyll have two options, go without, or buy from another supplier. That next supplier would be in Madison or Chicago, which means additional transportation fees, which is why even conventional gas is nearing $2 a gallon.

Katzung said, There are times like this where its a law of supply and demand, and I think the prices are inflated. Station owners say its bound to get worse before it gets better. The owners will pay the higher transportation fees in order to keep gas in their pumps and their business going.

http://www.msnbc.com/local/WTMJ/48772.asp?0a=229K1A0U

-- Martin Thompson (mthom1927@aol.com), June 15, 2000