Gas Tops $8 Gallon at LukOil Wednesday

Station owners stage protest claiming their suppliers charge them 5 to 20 cents more per gallon of gas.

Some gas station owners say they too are being gouged at the gas pump.

While a gallon of gas continues to rise toward $4 a gallon, LukOil owners say it is becoming more difficult for them to remain competitive in the market.

That’s because they claim their suppliers charge them 5 to 20 cents more per gallon of gas, forcing them to pass the higher prices along to their customers.

Starting today – LukOil station owners in New Jersey and around the country – are staging a protest.

They want to draw attention to the high prices they’re being forced to pay. But you may not believe their strategy.

NJ.com is reporting that, for the next 24 hours, some LukOil gas stations will raise their prices to $8 a gallon.

The station owners are planning to protest what NJ.com reports is the company’s “unjustified" pricing policies, according to Sal Risalvato, executive director of the New Jersey Gasoline Convenience-Automotive Association.

LukOil’s pricing policies have caused some dealers to lose more than 50 percent of their volume, while others have “turned in their keys," Risalvato said.

North Jersey Patch towns with LukOil stations expected to take part in the protest, include stations in Wyckoff, Bloomingdale, Verona, Newark, Randolph, Morristown, Kinnelon, Fort Lee, Englewood, Fairlawn, Riverdale, Montvale and Whippany, the report said.

Franchise owners at gas stations in New Jersey and Pennsylvania are planning to hang huge banners explaining the pricing situation to customers. The banners will also urge customers to call LukOil's offices as a way of pressuring the company to change its policies.

Chris Wysocki September 12, 2012 at 01:13 PM
LukOil == Vladmir Putin == Russian Mafiya. They don't really care what you think.
bbbnto September 12, 2012 at 03:04 PM
LukOil's protest is silly. The problem they have is with their supplier. This protest will just hurt them, not the consumer...who in their right mind would buy gas there? They want their customers to call the company and complain? Why would they do that when they can just drive to Wawa, or another gas station. Is there that much customer loyalty to LukOil? I may be wrong, but I think in 2012, most people don't care what brand of gasoline they buy, just as long as it's cheap. Don't all most gas stations in this area, with perhaps the exception of Hess, buy their gas from the same refinery? Hess has their own refinery.
Matt B September 12, 2012 at 06:07 PM
Why don't these owners just switch to a different supplier then? There is a reason why we have a competitive marketplace for stuff like this.
Gasboy Toman September 13, 2012 at 03:14 AM
They don't change suppliers because they are under contract with Luk Oil to buy exclusivity from Luk. Luk is supposed to charge prices to the wholesale dealers in "good faith" so they can compete. Frankly, most of the pricing volitilty is caused by speculators buying futures contracts that is causing wild swings in prices because of the paper driven false influences in supply and demand. Basically, investors should not be permitted to by paper barrels of petroleum products unless they have the ability to take delivery of the wet barrel of the product the contract represents. Thie volitilty is bad for consumer confidence and the economic recovery.
RC September 14, 2012 at 04:33 AM
$8.00 a Gal.?? Did they forget the 99 CENTS TOO...$8.99 was the Price on the news!


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