Fairbanks seeing high gas prices, but it could be worse
Published Saturday, April 26, 2008
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Remember the good old days when Alaskans paid only about $3.08 a gallon last year?
Granted, the rest of the nation paid about $2.89 on average, but there was still the hope of lowering prices.
Today, Fairbanks consumers are biting the bullet with fuel prices reaching $3.91 for regular unleaded gasoline.
But cheer up Fairbanks, it could always be worse.
Relatively speaking, locals are doing pretty well compared to the rest of the state.
Bethel residents are paying as high as $4.98 per gallon for unleaded fuel, the most expensive price of gas in the state.
Also surpassing the $4 mark are Cordova, Valdez, Skagway, Soldotna and Homer.
The lowest price available in the state is here in Fairbanks at $3.55 per gallon at Fred Meyer. The grocery stores’ fuel prices are actually lower than the national average by 3 cents as of Friday morning.
Other local gas station attendants are seeing fewer and fewer customers, particularly at the service stations selling more expensive fuel.
“Lately we only see the very loyal customers, but on average that’s only about 10 per day,” said Lance Violett, a service technician at Chevron at 333 Illinois St.
Over the course of almost two hours, just two customers came by for fuel on Friday morning.
Steve Owen stopped by the Chevron station in his Honda Civic because he was nearly out of gas.
“I can remember when gas was just $2.80 per gallon,” Owen said.
He’s been driving for just three years and has already learned a lesson about saving money.
“I’m trying to make as few trips as I can, and I’ll never get an SUV like my parents,” he said.
The mechanics didn’t expect to see many more customers that day.
“Luckily, the fuel part is only 15 percent of our business. It might as well be a used car lot at the rate prices are going up,” Violett said.
He and his fellow mechanics spend most of their day running the auto shop and changing the fuel price listings outside.
“We’ve been changing it almost on a daily basis,” Cody Walmsley said. “We were even doing 10 cent increments for a while.”
With oil prices stretching to almost $120 a barrel, the shifty housing market and the dollar stooping below the euro, the motor industry has also seen a downturn marking the lowest-selling year for vehicles in 10 years, according to Reuters News Agency.
Judy Schlotfoldt has been a Chevron full service customer for 28 years.
Full service costs an additional 40 cents per gallon at Chevron.
She tries to plan her errands so she doesn’t have to drive as often, but she said she’s shocked by the prices just like everyone else.
Walmsley finished filling her tank.
“That’ll be $75.56, ma’am,” he said.
Schlotfoldt’s eyes widened as she gasped. “That’s the most I’ve ever spent!” she said.
Community Discussion
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You can also thank GVEA and the BOD's for this price, not the oil companies. GVEA owns and controls the only pipe line for the crude to the refinery yet we still get the shaft on the price and the utility rates are astronomical to match. GVEA has diversified into just about everything and pounded millions down the battery backup hole from hell. Just another empire and we have no choice.
Good job GVEA ... with this leadership who needs a competitor ..lol. Can't be fixed like most things. The BOD's had their head in the sand for years and we are seeing the result.
Was surprised to read this about the high gas prices. For some strange reason I was thinking you all would be paying less for gas. With the pipeline, and all.
Not sure how you all are traveling any place with gas prices that high.
I live in Oklahoma and I just filled up my car last night at $ 3.38 per gal it cost me over $40.00 and I about had a cow. I would of passed out at $75.00.
As a kid growing up I remember the gas prices going up and people back then just stopped buying gas and the prices dropped, now days people seem to depend on it more .
For everyones sake's I hope the prices go down or the summer season maybe slim as people can not afford to travel.
Everyone have a great weekend.
What I don't understand is that in the morning the gas price could be $3.43 and at 2:00 p.m. it is $3.59. Then the following day it drops to $3.49. This is what is crazy. What is up with that? They must wait and see what is happening and raise the price because the oil prices went up. How can they charge you more that what they paid for the gas. I watched them fill the tanks at a gas station and the price was $3.25 and the next morning it was $3.45. So you know the gas stations are making some kind of profit!!!!!
Yes, it is all the fault of the gas station elves that change the price hourly.
Shockingly, I don't blame the gas station owners. They are not running a business for free. I doubt $.10-$.20 a gallon really covers most their operating expenses unless they offer other services on the side, like the Cheveron in the article.
If people will pay $4.22 per gal. why would they lower the price?(judy is NOT handicaped)
At least those of us on the road system are not paying what the people in the remote villages have to pay. I heard one village in the northwest will be paying $8 a gallon by the end of the summer when the last barge gets in. Those poor souls use gas from heating their homes to boats, snow gos and hondas they use to gather game and berries. Not to mention their food prices at the stores will really sky rocket. Milk is already $10 a gallon and a gallon of bleach is $15. I was in a village a few weeks ago and bought 1 16oz gatoraide, 1 can of pop and a butterfinger and it cost me over $9!!! I don't see how those people, especially with large families, are going to make it.
Livin2c... we Alaskans should have better gas prices because it is our oil, but it gets shipped to the lower 48 instead. I hope Juneau will begin to understand what the rest of us have been having to pay now that their natural gas has been cut off. I also hope that when the gas pipeline goes thru, it will be provided to Alaskans in remote places before the lower 48 gets it.
Get the real story at www.fairbanksgas.com. Fred Meyers, Sam's and Safeway are many times selling fuel for less than cost when you take advantage of the reward programs. Our local refinery gets most of the extra profit and routinely operates at twice the margin of refineries in competitive markets. It also needs to be noted that Alaska has the lowest fuel tax in the US. Our state tax rate is 13 cents lower than the average. This difference is taken up by the refinery when comparing prices across the US.
GVEA has been diversifying into everything except power generation. Instead of branching out into wireless internet and fiber optic communications I would like to see them diversity our power generation off of diesel and naptha generators so we are not dependent on $120 crude oil and a greedy refinery to power the electric grid.
Unfortunately our current 50% fuel surcharge was based upon fuel costs when crude was $80 a barrel and gas was $3 a gallon. When the next fuel cost is calculated we will be paying close to 25 cents per kilowatt. This is unacceptable and we need to hold the GVEA board accountable next Tuesday at the membership meeting. As a utility they could care less what the costs of generation are as everything is passed on to the consumer, you and me.
FOR IMMEDIATE RELEASE: April 22, 2008
AEA Announces Energy Plan Town Hall Meetings
Public Forums Scheduled for 25 Communities
(Anchorage) - The Alaska Energy Authority (AEA) announced Energy Plan Town Hall meetings to be held in twenty-five communities throughout Alaska, starting April 28 in Palmer and concluding June 4 in Anchorage.
"Our goal is simple: We must reduce the cost of energy in Alaska by using locally available energy resources," said AEA Executive Director and Energy Coordinator Steve Haagenson. "To reach that goal we are engaging Alaskans in the process of creating and deploying solutions that will not only provide stable-cost energy now, but will help ensure affordable, reliable energy for our children and grandchildren as well."
Teams comprised of representatives from AEA, the Alaska Department of Natural Resources (DNR), the Alaska Department of Commerce, Community and Economic Development (DCCED) and the Denali Commission will be traveling throughout Alaska to meet with the public, business, community and regional leaders and utility managers.
"We are holding these Town Hall meetings to gain answers for two fundamental questions," Haagenson said. "First, we want to ask Alaskans what they know about local energy resources and which resources they think could possibly be developed to help lower costs. Second, we want to ask residents which resources they prefer not to develop, and why."
Fairbanks: April 30, 4-8 PM, Carlson Center, Arthur Buswell Pioneer Room
See you there!
given time man will eventually destory himself. as he has gotten smarter with technology he has gotten dumber. if that makes sense. unfortunately we all are stuck with the high gas prices if we want to survive if you call it that. this morning in town gas was $3.25 at 10am did some grocery shopping and errands was gone about 2hrs came back by the same gas station and the price was $3.63. what's up with that crap. and what gets me is the gas that they are pumping is probably from 6months to a year old. i guess gas will soon excede the price of gold per ounce. i feel sorry for all you alaskans and the high prices of gas and groceries. i know things are expensive here in cleveland oh and people can't make ends meet but i can't even imagine $10gal for milk i think it's bad that ours is $3.79 a gal in grocery store but if you get it at cvs or riteaid it's $2.69. that's $1.10gal cheaper and it's from the same dairy. someone explain that to me. i hope when you all get the pipeline it takes care of alaska first!! you are soooo right miss kitty. try to have a nice day everyone.
ONLY!
Blaming the electric co-op for high gas prices? Next thing you'll say is that they killed your dog. The GVEA Annual Meeting is on Tuesday, James. I hope I see you up at the microphone, speaking your mind. I doubt it, though. You'll probably just continue to be an ignorant digital troll.
What MissKitty said is true!! In Galena, gas has been at least 5.25 for over a year!! In some of the other more "remote" villages, it is even considerably more. I just wonder how much it will be when the first barge docks with "new" fuel? By the way, I thought we were a coop at GVEA. I have been a member for almost 30 years, and wonder, how are we charging OURSELVES so much for power?? I hope to see everyone at the meeting.
Constant gas price rising! Wages not rising!! We operate a generator at our business as we must. To have power at 60 mile Dalton Hwy. {The Haul Rd.]Everything from pickups to the generator run on diesel and that is rising faster than gas prices.Raise our prices will the people still come? Lower the quality? I dont think so!Thank our tourism industry? Hope it stays strong. But will they be in a panic at prices and hold on to the extra dollar they brought with, to be able to put fuel in their cars and heat there homes when they get home. All is not well in the North.
It will get worse unless we stop it now.
Gas prices will continue to rise, thanks in part to Lisa M. and Ted S. statement in regards to Drilling in ANWR and other parts of America. Let's just sit and wait till the barrel price is around $125 a barrel, that just gave big oil the green light to continue to raise the price of fuel. ANWR and other resources should be open now. Fuel costs are the primery reason for the nations recession. P.S. If we want cheap electricity, then build a Nuclear Power Plant, Im sick and tired of the $100 a month surcharge I'm paying for my Electric. Coal used to be cheap, but that is getting rediculious to. What ever happened to common sense, it was thrown out the door when the Barrel cost of oil went over $75 a barrell. It doesn't cost more to bring it out of the ground, just puts more profit to OPEC and Big Oil.
When I lived out of state many years ago, I went to this gas station that pumped your gas for you for free (not in Oregon!). It was so nice, especially on cold days. In 2004, my husband and I went to Paxson Lake to camp. We got gas at the lodge, and the photo I took of him pumping gas has the caption "Ridiculous $2 a gallon gas!". Oh the memories.
Remember when they pulled this on us with the Oxyfuel? Isn't it time we took action again.
Here is an updated comparison of energy costs in Alaska. Notice how cheap coal is. Too bad our local electric co-op only generates 30% of our power from coal and 50% from naptha and diesel. Anchorage gets their natural gas for next to nothing and they still complain about the costs.
Cost of energy per million BTU's
Source---------------------$/MBtu
GVEA Electricity-----------$47.80
Chugach Electricity-------$34.31
Fairbanks Heating Oil----$28.36
Fairbanks Natural Gas---$22.67
US Average Natural Gas-$16.24
Spruce Firewood----------$10.34
Anchorage Natural Gas--$10.22
Birch Firewood-------------$8.87
Coal-------------------------$4.40
from www.fairbanksgas.com/energy
I agree, lets set up a huge nuclear reactor and supply the whole state with cheap electric. Then we would guarantee a military presence in our state for the unforseen future and stabalize our economy once again.
Could be worse? Hahahahaahah! With demand in China/India growing at double digits and our NIMBY government's reluctance to develop our own coal, nuclear, and oil resources as well as the Fed and other central banks jacking up M-3 money supplies: It's going to get a LOT, LOT worse.
All of us are guilty of taking money from high crude oil prices. We get it from the PFD every year. I would much rather get my State Royalty Oil in the form of lower gasoline, heating oil, diesel, aviation fuel, and propane. Juneau, at the most, has a three or four month 'disaster' because of the avalanche. 17 state officials gather and ponder over how to help Juneau when most of our communities all across the state are paying much more than 50 cents a khw and much higher fuel prices than Fairbanks or Juneau or Anchorage.
No one lifted a finger for us. We have taken heating fuel from a foreign country when we are exporting over 700,000 barrels a day to outsiders. We need to take our State Royalty Oil and have it delivered to Alaskans for no more than $3.00 a gallon. It is not right to have so much oil being exported when Alaskans are oil poor. Our villages cannot stand much more energy stress. We shudder to think of what the cost of fuel will be when the next spring barges come in.
We need help and are hoping that the Fairbanks legislators will join with the bush legislators and Anchorage legislators and the governor to give all of us energy relief.
So, uh, how much does a used Hummer sell for these days?
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I bet alot less than a few months ago for sure!! I drive a fuel efficient car, and just hope I dont hit a moose with it, I had a suburban, but it went away long before prices got to where they are now.
It will get a lot worse.
FNG needs to be a bit more specific on laying blame to THE North Pole Refinery...which one are you commenting on? There are two...
"Livin2calaska" has a good point.
Let's stop driving till they lower the prices!
has anyone looked into drivewater.com???????????/
andora: YOU HIT THE BULLS EYE!!! Rural Alaska has not only the highest price for gasoline and heating fuel in the Nation, it also has the highest prices for food. And if you traveling...the highest prices for a plane ticket per mile, too. Rural Alaska has the highest unemployment rate, highest percentage of people living below the national poverty level, the highest suicide rate to go along with the HIGEST COSTS for fuel oil and electricity.
The State of Alaska has been profiteering on the export of ALASKA's oil for years...and charging ALASKANS the price that the world customers pay for oil. The PFD is just a bribe to disguise the tax we pay for the bloated bureaucracy and special interest boondoggles AND the biggest ripoff in world history.
It is time ALL ALASKANS benefit from our natural resources at a price we can afford to pay. And to do that we are going to have to work together to make it happen.
Andora your comment: "All of us are guilty of taking money from high crude oil prices, We get it from the PFD every year"
that's right and it goes right back to where the money came from every time you and I fill up at the pump or use Heating Oil.........BIG OIL GOT THEIR'S AND THEN SOME!!!
I rode my bike into town today. My goal is to limit my car fueling to twice a month this summer. What are you guys doing other than complaining?
They tore down the old coal bunker years ago, when everyone converted to the new technology. We had our own refinery. Everyone converted their homes, and the new homes built didn't even consider alternative fuels.
I have mixed feelings about nuclear, given our location in the world. Chernobyl.
Coal and wood will probably make a great comeback. Until we can come up with reasonable alternatives.
Realdeal,
Don't worry if to many of switch to coal or wood you will be penalized with a hefty carbon tax to the purchase, this punitive tax will be attempted to prevent you from seeking energy that is affordable.
Freshwater,
I sold my house, took the profits and invested in a overseas mutual fund (Asian Markets) and to a limited extent some US funds, moved in to a friends house to share the cost of energy and I am planning to head for an island in the South Pacific, while the cost of energy and everything else will be about the same as here and climbing like here, I won't have to purchase heating fuels ever again. I will still require transport but the island being only 30 X 8 miles will hopefully limit how many miles I will need to drive on a daily basis.
Feels kinda nice to be debt free, free from paying property taxes (really good friend), and soon heating oil once I move. I may hang around for awhile and sock away some more cash before I jump but depends on just how high and fast the other costs around here climb.....
Remember the Mad Max (The Roadwarrior) movies? I often think that's how we will be living one day!! Thanks fairbanksgas for the meeting information.
The energy costs affect us all. However , perhaps it will push us to learn other ways of transportation, and alternate sources of energy.
I almost fainted when I read an article last year , that the United States burned 590,000,000 gallons of gasoline for MOWING LAWNS IN ONE YEAR.
hey freshwater i will tell you what i am doing and its prob a lot more than you (since you are on your high horse)--run my power only 4 hours a day, dont drive a car, and heat my home with wood--so like that means anything-- there is plenty of oil reserves and coal to keep the country running strong and cheaply for many decades to come but --oh we cant touch it..meanwhile every other country is drilling like crazy..oh well i got plenty of beetle kill spruce to heat my home
we are being conditioned... for what? maybe a reason to kill more people overseas.. or to drill every last inch of refuge lands.
and i suppose that computer you are using is running off a hamster in a cage.. would you be happy to go back to the stone age? not to mention gwinzii none of what you said makes any sense
The rapidly changing price at the pump could be that the gasoline does not belong to the store front, but belongs to the supplier to the store until it is sold by the store at the time of pumping and receipt. The supplier is chanaging the price of their product based on other aspects of the fuel industry markets.
I would love to see all the diesle being sent from N.Pole to Anchorage for the foreign cargo jet's "fuel stop", to be stopped. Why do we need these jets to stop in Anchorage or Fairbanks to fuel up. Devert that fuel to Alaskans and stop the foreign cargo jet fueling!
Dont tell me we make money on the jets, because it is not enough! And you can't convence me we need fancy terminals in front of the majorities energy needs.
Another thing? Why do diesle trucks drive all the way from Kenia to the North Slope with loads of Diesle because they can not buy it from North Pole, and we send train loads of diesle from North Pole to Anchorage. Is this stupid or what?
There truly is nothing that can be done except to accept the fact they the oil and power companies will never lose money. The more we conserve, the more they will charge. They are not going to lose money. When cars can go 100 mpg then a gallon of gas will cost $30.00 a gallon.
User 6224 I hope you are happy Being a castaway, and I hope I never here from you again. Unless it's in a bottle I find on the beach.
If you plan on staying in Alaska, Get real. As a youngster I saw several homes with coal chutes, and dual fuel furnaces.
I always thought it was a darn shame when they tore the coal bunkers down in Fairbanks. Do we really need more room for Ace's parking lot over easy access to coal for heat in our homes?
get a motorcycle for the summer months.
Love riding!
OK Easy riders. I wish I could grow up, but I'm still with you. In spirit.
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Fairbanks Gas is right on all counts and I agree.
Out-In-The-Cold .... the part you overlook is that they don't pay for anything, have never worked and everything is given to them free. It doesn't matter if heating oil is $50/gallon ... it's free!
Diesel is not only trucked from Kenai to Fairbanks but also to Prudhoe Bay. The reason is ultra low sulfur fuel for vehicles. The Kenai refinery is the only one in the state that makes it. And its use is mandated by our friends at the EPA.
My friends at the Flint Hills refinery tell me they didn’t get their annual bonus this past year because of the tight profit margin. However they still seem to be able to ship jet fuel by truck and rail and sell it at Ted Stevens International Airport for less than they can here at FAI.
James, you sure sound like you know what you're talking about. Why don't you come out to the refinery and show me where we don't pay for transportation costs, our tax breaks, and then show me our rebate to GVEA. While you're out here, I'll have my sister meet us, so you can show her how to get all that free stuff up in the village...As an Alaskan owned refiner, just about all of our profits are kept here in Alaska. We can't get everything we need made in state. But, as a non-profit coorporation, it all recycles itself anyway.
I know we all apreciate our pfd's, but why are we paying so much in the first place for fuel? Its OUR oil for thats being sold! I am mystified as to why our state did not bargain for lower fuel prices for all alaskans years ago. Sure, I like my pfd, but I would rather pay ALOT less for fuel oil and gas than receive a pfd, or better yet, both! The state has to sell our oil at the best rate for all alaskans, but would'nt the best rate be DIRECT to alaskans rather than indirectly? Considering the amount of fuel oil and gas used per person in alaska (because of the climate here), we have special needs greater than many others that have availability to natural gas or have a warmer climate. I know my idea seems simplistic, but I think it makes good sense for all of us and I would suggest that we implement an idea along these lines before we put in the gas line.
its the same old thing on each thread.. the same people singing the same tune day after day.. whats up with all the assumptions? if you are against one thing you MUST be for this. always this or that. its this conditioned dual perspective that limits perceptions of the bigger picture..
let it go. see what a difference that makes in your own energy.
Don't worry, this is easy. The bad times are just around the corner!
Gee and how many billions in profits have the oil companies made? Sure isn't in their interest to lower the prices. Look back towards the 70's when the oil companies fabricated the so-called energy crisis/oil embargo just so the price could be raised and their profits increased.
FYI - in the 70's and 80's I lived in Great Britain and back then was paying almost 6 dollars a gallon, and as one who has lived in the bush - these current prices seem cheap to me. I sure feel for those in the villages when it comes time to stock up on gas for fish camp.
Gwinzii, your comment is dually noted. What part of the world is your opinion coming from?
?
max669 ..... we are being literally raped by the refinery and you certainly well know it.
A non-profit .... now that is a pure joke. Let's be realistic here. For example: the state subsidizes the power in the bush (power equalization or something). Then you (the non-profit) send the green or the red check and the user pays the $0.25/Kwh with that. FREE
Free housing, Free TV, Free phone service, Free snowmachine, Free boat. Free health care, Free transportation back and forth to FAI or ANC .... it goes on forever.
Sherry29 has the right idea however. Just a way of life and little to nothing we can do about it.
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