Skip to: Content
Skip to: Site Navigation
Skip to: Search

October 6, 2008 10:23:06 AM CDT

Learn about Newser Points »

« Back to the grid | Next story »

Gas Rising, Station Owners Barrel Toward Bankruptcy

Posted Jun 10, 08 12:24 PM CDT in Business,  US 

(Newser) – Stiff fuel prices are not pouring cash into the pockets of California gas station owners—instead, they're driving them into bankruptcy. Credit card fees, tanker-load costs, and other rapidly increasing expenses are putting the crunch on retailers, reports the Los Angeles Times.

In LA, where the average retail price is $4.41 a gallon (and the break-even price is $4.62 a gallon), some station owners are voluntarily going without pay to avoid collapse. "In the past four months, 10 of the dealers to whom I supply motor fuel have relinquished to me the deeds to their businesses," a supplier told Congress last month.

Source Los Angeles Times

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • Easy St.: Thieves Having a Gas

    Jul 6, 08 9:28 AM CDT
    Easy St.: Thieves Having a Gas Stealing gas by siphoning it from vehicles is a simple crime that can reap big rewards—and as fuel prices soar, the crime is ever-more tempting for thieves, the Washington Post reports. A Maryland county reported zero or one thefts yearly from 2005 to 2007, but cops have already logged seven this year. Meanwhile, sales of locking gas caps have skyrocketed. More »

  • Yanks Flood Mexico for Cheap Gas

    Jun 25, 08 3:46 AM CDT
    Yanks Flood Mexico for Cheap Gas Soaring gas prices have Californians and Texans racing for the border and braving drug cartel violence to save some $20 per tank filling up in Mexico. American pumps have passed the $4 mark, but Mexican gas is still just $2.66 a gallon thanks to subsidies intended for poor Mexicans. Americans are buying it up instead, triggering a 50% surge in sales—and Mexican gas shortages, reports the New York Times. More »

  • As Gas Spikes, Profit Scarce for Station Owners

    May 25, 08 1:13 PM CDT
    As Gas Spikes, Profit Scarce for Station Owners Feeling sorry for gas station owners might be more than the average consumer can muster these days, but, reports the Washington Post, the emotion might not be misguided. Oil giants like Exxon cut owners' profit margins and raise rents, while micromanaging details down to which shelf franchisees place soda on. If the owner raises the price per gallon a few pennies, Exxon spikes its wholesale price, leaving little room for earnings. More »

  • Old-School Pumps Can't Register New Gas Prices

    May 12, 08 7:30 PM CDT
    Old-School Pumps Can't Register New Gas Prices With gas at nearly $4 a gallon, thousands of American gas station owners foresee trouble—because their old-time pumps can't price gas at higher than $3.99. "In small towns, where you don't have the volume, there's no way you can afford to pay for the replacements for these old pumps," one owner told the AP. "It's just not economically feasible." More »

  • More Is Less: High Gas Equals Quicker Drives in LA

    May 12, 08 4:55 PM CDT
    More Is Less: High Gas Equals Quicker Drives in LA Sure, gas prices are unreasonable and the economy is hurting, but, the Los Angeles Times reports, at least now the infamous traffic isn't so bad. Hard data shows that traffic may be thinning out along LA’s freeways; accidents and commute times are also falling. Talking with local drivers, the Times got plenty of anecdotal evidence to support the theory. More »

A gas station employee places the number five on a sign as the price of a gallon of regular grade gasoline.   (AP Photo/Tom Mihalek)
A sign with gas prices posted at $4.999 and above are posted at a Shell gas station in Redwood City, California, on Monday, June 9, 2008.   (AP Photo/Paul Sakuma)
Justin Vargas fuels up his truck which he uses for his work in carpentry and construction at a gas station in Half Moon Bay, California, on Tuesday, May 27.   (AP Photo/Marcio Jose Sanchez)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (
1
 of 4)

Tags

California  • Los Angeles  • gas prices  • gas  • fuel  • gas stations


Loading...

Premium Articles from HighBeam

Find more articles like this

Today's Most Popular

Loading...

Other US Stories

What is Newser?

2008 Codie Finalist

Newser gives you more news in less time. We search for the best and most important stories all over the web, read them for you, and deliver concise and sharp summaries—along with links to the full text. Newser provides a way to stay on top of an ever-expanding horizon of news and opinion—politics, sports, business, trends, technology, personalities, crimes, and controversies. Newser keeps you not just better informed, but, with our signature graphic interface and smart condensed format, more enjoyably informed.

Learn more »