Rising fuel prices threaten to put local gas station owner out of business
Published Saturday, July 5, 2008
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The owner of a small country store and gas station is debating whether to keep his doors open as gas prices run higher than his mechanical pump displays can handle.
Early last week, Curry’s Corner owner Patrick Weaver said he would provide gas at least until the supply in his storage tanks runs dry.
“I’m trying to stay in business as long as possible, so if someone runs out of gas, we’ll have it,” he said.
But by Wednesday, the only operating pump had broken down. Customers still stopped in for beer, snacks and groceries, but plastic bags over the fuel pump handles prohibited gas sales.
The failure of mechanical pumps to climb past $3.999 a gallon and the high cost of pump replacement or repair are only two items on a laundry list of factors that wear down small fuel businesses. Weaver said his electric bill runs about $82 a day, with coolers of milk and ice to keep chilled.
As the list grows, Weaver’s motivation to keep pace with the changing times seems to slacken.
“I don’t know what we’ll do,” Weaver said. “What is the future of it — is there a bright future? The answer to that would be, I don’t think so.”
In the gas business since 1975, Curry’s Corner is a fixture set in a broken-asphalt lot about four miles from Fairbanks. The junction of the Old Steese Highway and Chena Hot Springs Road used to be a busy one — but those were the days before a new expressway hurried drivers past.
The bulk of Weaver’s business now is local customers with homes hidden among the trees in this enclave four miles from Fairbanks’ new big-box retailers. They stop in regularly, are often greeted by name and exchange a few words with Weaver as he tallies purchases.
The fuel purchase totals have decreased in recent weeks as Weaver limited gas totals to $20 worth, which isn’t much with gas at more than $4 a gallon. But it’s enough to fill a lawn mower, top off the tank or get into town for more.
Rationing supplies was one way Weaver tried to keep serving loyal customers, but even that is gone now. He said the last pump is broken, and he’s not sure whether a fix is warranted.
Some older-style mechanical display pumps spin only to $3.999 a gallon, presenting a big problem for retailers at small stations across the country. States regulate gas stations and typically allow sales only based on a dollar price per gallon to protect consumers. Now, with prices so high, some states, such as Iowa, are enacting emergency orders to allow sales by the half-gallon, while others are considering similar measures to help smaller stations stay in business.
The state of Alaska has allowed half-gallon sales for several years and offers stations some other alternatives, said Doug Deiman, chief of the Weights and Measures Division of the Department of Transportation.
A generation of pumps, mostly in rural villages, had a $2-a-gallon maximum, he said. In response, his office opted to offer relief instead of clamping down on existing rules.
Stations can sell gas by the half-gallon, providing some guidelines are met, Deiman said. The state’s preferred action is for station managers to cover up pump displays of price per gallon and sale totals, and instead compute the bill at the cash register.
“Consumers have a little bit of a hard time trying to figure out half-pricing,” Deiman said. “We would rather see them just cover the whole thing up, except the gallons.”
Selling by the half-gallon would be at best a temporary fix, Deiman said. Some of the oldest pumps, which couldn’t reach $2, may not be selling even a half gallon at today’s prices.
And any major pump repairs or replacements must include new, fully electronic computing devices, he said.
Weaver has priced upgrades, but just can’t justify the $30,000 price tag.
“I could upgrade my pumps,” Weaver said. “But it’s just not worth 30 grand. It’s just a convenience to the customer to have the gas. You don’t make any money on it.”
Pump replacement is one of those things a skilled country mechanic could have done on his own years ago, but modern federal and state regulations require certified installers and sometimes costly inspections — all of which raise costs substantially, Weaver said.
“Back in the old days, it wouldn’t have been a problem,” he said, a smile slipping from beneath a snow-white beard and mustache. “I’d just do it myself.”
Local resident Hans Sobanja has been a faithful customer for years. He pops in for supplies, fuel and lengthy political debates with his neighbors and Weaver.
“There are lots of people who come here,” he said. “It’s a steady flow, all winter long, too. It’s nice to have the gas. A lot of times, you just want to put $10, $15 bucks in. Who wants to drive to town to do that?”
If Curry’s Corner shuts down, he will feel the loss in more ways than one, he added.
“This is reminiscent of the old country store,” Sobanja said. “And there aren’t many left. It’s a part of America that’s being lost to the corporations.”
Weaver, however, is holding out some hope that the economy will take a swing up, possibly enabling him to keep his doors open longer.
“There is no real economic incentive for me to keep trying to market petroleum,” Weaver said. “This is an industry problem. I’m hoping the price will go down.”
Community Discussion
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How sad. Pat and his wife are great people. The problems this local business has is an early warning about what is certain to happen to our local economy.
One has to wonder how much we've lost- and will continue to lose by Big Oil bribing and manipulating our political system to keep Alaska's resources locked up.
I just dont understand it. Most other states that are oil producers on the West Coast, Texas, Oklahoma etc fuel prices are beneath the national average. Alaskans are being screwed once again!!!
Sad? It's frightening. How many gas stations between Fairbanks and Anchorage are mom and pop county stores, which so many people depend on? What's worse is the Alaska pipeline is 4 miles down Chena Hot Springs road from Curry's Corner pumping fuel eventually to Japan, and the rest of wordly markets.
We have an oil refinery and oil pipeline right here in FNSB and we're running out of gas????
What do our elected officials NOT see about this insanity?
Part of the problem in Alaska, as opposed to other states, is population density. You have a small number of people scattered across a large area, and transporting fuel from a limited number of refineries to such scattered retailers in such relatively small amounts, is what makes the retail price so prone to going up. And of course when the gasoline is transported by diesel, and diesel is so much higher than gasoline, drivers of gas-powered vehicles are paying, in a way, for an awful lot of diesel fuel as well as their gas.
Good point, McGehee. Remote Alaska locations are and going to be a challenge to deliver fuel to. Fairbanks, however, has all the oil and refining capasity right here. It'equivilent to living in an apple orchard and you can't afford to buy the apples.
This is not just an Alaskan problem. The same thing is happening across the country. Old gas pumps don't go to $4.00/gal, and the small amount of money made on selling fuel is not worth the hastle of constantly changing fuel prices, or to replace old gas pumps. My old home town in western New York is down to one gas station, and according to my parents, it is considering stopping fuel sales, and just being a convenience store.
I'm thinking that we should pinch the pipeline off right there in North Pole. For thirty years I've wondered why we pay as high and higher fuel prices then Anchorage and the rest of the lower 48.
All points well taken. The problems we are experiencing are directly related to the buisnesses and money partnerships of our "governments" and the oil and gas companies. I believe the root of it is in the federal government which of course dominoes to the lower levels. I believe the federal government and the oil companies could fix this problem litteraly overnight.
Has anyone else watched the senate hearings and heard the responsing from the oil CEOs and presidents when questioned about the increasing prices and the "BILLIONS" in proffit. They say if they cut into the proffits they would not be able to continue exploring and testing for more well fields and alternative scources. And seemingly the senate committee members "ACCEPTED" this argument as justification. Come on people!? There are too many high positions in the federal government tied to in some way the oil companies and world buisnesses.
If it is not the oil companies in some way making "road blocks" to the automobile manufactures for producing more passenger vehicles operating on water, what could it possibly be?!!! Why wouldn't they manufacture the cars knowing the proffits they are losing now would be made up by them?????
I am so bitter over this mess because I am scared of what is comming in a few months to our areas. The fuel companies, banks, and most of all FAMILIES are going to suffer hard. Fuel companies can only carry long term accounts for so long, banks are going to get back frozen houses and trailors (homes) and families are going to be forced to "god knows where" for survival.
I blieve our governor is on the right track but the government red tape is not being cut fast enough. We only have 3 1/2 months and that is not many more "special sessions."
Fuel tanks, car and truck tanks, and wood piles are going to have to be locked tight this winter.............
Another point not brought up. Is the larger stations such as Fred Meyers, etc are given discount prices from suppliers where stores like Curry's isn't. This is also why stores such as them have to charge slightly higher costs.
Until we all have an equal playing field you will continue to see this happen. What happened alot was by the time they were able to sell the gas in the tanks, the prices went way up over what they made. This happened at 10 Mile Mercantile also. Now there is only one fuel station out on Chena Hot Springs and it's at 24 mile.
Like I've said before progress went out the door when we started getting real lemon in our dish soap and imitation in our lemon ade.
I have always tried to support the "little guy" and keep my business locally. Living off the Park's Highway near Healy, I see that Chevron here sells their gasoline at $5.39 a gallon (owned by Aramark) but Keith's (Tesoro) sells it at $4.99. Not a hard decision on who gets our money.
Here is a story of a business who tries to do their best for their customers and there are others who appear to take advantage of their customers. I wish Curry's the best but like our economy, the outlook does not look promising.
I have known Pat for decades......
I'm reminded of the time a little boy's snow go quit at the store. He did not have a quarter to call his dad and Pat would not let him use the store phone. I'm reminded of the time a father bought a gal. of sower milk and Pat would not replace it. The father poured the milk on the counter. Pat has run off more customers then he brings in. He needs to sell out for the good of himself and the future new owner.
buboy- you don't get it. There won't be a new owner, which I am sure is fine with you. But this article is about a little more than what's fine with you. It's about having box stores to serve us everywhere instead of the mom 'n pops. Now there are lots of box stores where there are lots of population- but between fbx. and anc. no box store is going to anti up- they won't make enough money to make it worth it! Think a little beyond your personal interests and stories- you can do it!
I used to live across the street from Curry's Corner and will have to second buboy. Almost everything in that store is expired or stale, the goods are way overpriced- especially because they are rotten, and service does suck. It's surprising to me that oil prices are the rub, that place should have went under long ago.
theGoat- I get what you two are saying, and we can see the same thing at places like the Moose Creek General Store. I guess the big concern to me it that when these places go it will be a lot farther for some people to get "one little thing" or "a gallon to make it down the road". AND it might spell problems for gassing up between Fairbanks and Anchorage as well.
Good riddance Curry's corner. I went into that store once about seven or eight years ago to ask directions form an older man. The man proceeded to rip me a new one for entering his store without the intent to buy anything. He proceed to rant about the many people who have done this in the past. Needless to say I turned around and walked out. He wasn't just rude, he was downright nasty. Needless to say that was the first and only time I was ever in that store. I drove by that store several times over the years since then and every time I was reminded of the way I was treated in there. I can only speculate this man was the owner although I did get that impression at the time.
One large factor that is rarely mentioned is the fact that prices are being driven up by rampant dollar devaluation. It is true that large oil cartels manipulate prices. But this time, we have allowed a private bank called the Federal Reserve to destroy our currency and economy.
Thomas Jefferson said:
"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
Letter to the Secretary of the Treasury Albert Gallatin (1802)
......Pssssst!
gold dust!
......The Ghost of Thomas Jefferson
I have to side with the people who have stated they have had less than pleasant experiences with the owner. I once stopped there to get a bit of gas to make it into town, and when I asked for $5 worth of gas and handed him a $20 he gave me quite the lecture. I'm an adult and don't appreciate being talked down to like that. I only needed a couple of gallons to make it to town and back and the $20 was all the money I had for the week.
Small businesses will survive if people are loyal to them. I don't see Curry's Corner surviving because the owner has done very little to endear the business to the locals, so I don't think many people will be sad to see it go.
I've been driving right by Curry's for years and haven't spent a dime there. Like many others, I don't enjoy old stock, way-too-high prices and poor service. When a businessman treats me like the enemy I return the favor.
Curry's corner is a dumping ground for out dated products,I hope he goes out of business,and good riddance to a grumpy old !!!!!!!!
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