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Price gouging on the Peninsula?

Posted: December 30, 2012 - 12:39pm  |  Updated: December 31, 2012 - 10:11am

The price of gasoline has been lowered approximately $.50 a gallon since August and the price of diesel fuel has been reduced by a like amount. The price of propane has not reduced by one single penny in the same time.

The cost of propane delivered to your home is approximately $5.00 per gallon. It has been this high for several months with no sign of lowering. The price for the same gallon of propane delivered to your house in Ketchikan is $2.50. The price for a gallon of propane delivered to your house in Juneau is $2.55. I am at a loss to understand how propane in Southeast Alaska can be so cheap, while propane in the Kenai Peninsula can be so high when the source is in our backyard. The propane in Ketchikan and Juneau can only get to those communities via barge service from the Seattle area. The transportation costs are very high via water barge so one can imagine just how low the price is in Seattle area.

It is obvious that the local propane fuel merchants are going to continue to rip off the public through this price gouging. This is the same price gouging that our local representatives claim is not occurring. I feel sorry for those people who depend on propane to heat their homes because natural gas is being withheld from a large area of the Kenai Peninsula.

Hopefully the next session of the Alaska Legislature can work together to bring affordable fuels to all in the peninsula area.

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Seafarer 01/02/13 - 05:55 pm
Excellent Letter!

You are right as rain on this one. My kids supplement their woodstove with propane and it nearly breaks them to have to rely on it. It is also their hot water source. The natural gas line is 200 feet from their home, yet it costs thousands for that little dogleg in Enstar's domain. Makes me sick. I got grandkids, for crissakes. I thought monopolies were illegal under federal law. So is usury.

BigRedDog 01/03/13 - 11:13 am
Just a hidden added Tax

We still ship all the fuel consumed on the Kenai to Anchorage for a US Customs duty stamp. Then put it right back in the same truck and haul it back down for distirbution after it is metered. Must be some special meter? Maybe in this cyber age we could have them monitor a meter just like the one in Anchorage down here in Kenai and avoid millions of ton miles of wear and tear on the highways. Not to mention adding a nickel or more to the price of every gallon we buy on the Peninsula! I know it's just a nickel right?
Does it cost anything to have them running up and down our highways? Just the wear and tear of millions of ton miles of traffic is all. Is this still needed in this computer age to cost millions of dollars every year for something a high school computer whiz could hard wire in an hour? You could go into Radio Shack and pickup anything needed to monitor that meter. This would end millions of dollars in hidden expense associated with fuel transportation paid every year bye the voters of the Kenai.
Call or communicate with your elected officials and make sure they understand just how tired you are of paying for something this rediculous!

BigRedDog 01/04/13 - 09:00 am
Point of Entry Permit Required!

What kind of BAD joke is this, we have to ship all the fuel processed at Tesoro being sold in Alaska to Anchorage. Thus meeting some 19th century decree concerning Ports of Entry for US Customs. If the US Customs isn't capable of monitoring this process via electronic metering we need to hire somebody that can help them. How much would it cost to open a Port Of Entry office in Kenai? Would $250,000 a year cover this cost? It cost the Peninsula residents that much for one months shipping cost at the pump!
Are you hearing this, "Someone is costing you for all our higher gasoline prices, to meet some totally out of line US Customs requirement." The technology required to monitor this volume of petroleum products is available at Radio Shack. I guarantee if we offer a full scholarship (KPCC) to any HS student from the peninsula that submits an acceptable proposal it would be done in a week! I'd bet my PFD check this contest would be OVER in a week.
I think it's time for the public to DEMAND this silly crap be changed. Dennis Barnard, Kenai

BigRedDog 01/04/13 - 10:06 am
Like being Ripped OFF?

I know there is somebody out here that knows a great deal more than I about this topic concerning the required shipping of fuel to Anchorage than I do. So I'm beating my lower Gas Prices Drum, gonna do a rain dance to if we can shut down that fleet of trucks ripping us of for what >$250,000 a month! That's right it cost a huge chunck of change to have a fleet of heavy duty Double Tankers on the road and todays technology totally makes it mute.
Whatever department of Government is responsible for oversight of this debockle, needs their collective chain jerked real hard. Could it be we are paying near or over $3,000,000 a year more for our own fuel on the Kenai because on something this easily fixed? Everybody climb on this one and together we can solve this before something happens on our highways. There is a huge tonage of fuel needlessly being carried at great cost and peril because somedoby needs to sprinkle it with Customs Duty?

Watchman on the Wall
Watchman on the Wall 01/04/13 - 11:12 am
Abuse of roads as well

Major rip off for many yrs as well as massive road abuse with this nonstop convoy of heavy trucks going back and forth.
I went to anchortown yesterday and had many such trucks coming and going pass me.
We are being ripped off BIG TIME, but i would say that the politicians from our local area seem to be in agreement with this practice as they do nothing to stop it's continuation.
The thing is will this new group from the Kenai change things or give more to Big Oil & Gas? I would venture to say due to past history that things get worse for Alaskans in regard to oil & gas prices, as well as electric, ANOTHER RIP OFF

spwright 01/04/13 - 11:44 am
Fueling Point 1/4/13

Fri 1/4/2013
If you make the time to watch what's happening at the Tesoro Refinery in Nikiski.
The Fuel Tanker Trucks fill their fuel tanks right there at the bottom of the hill near the entrance of the Tesoro Refinery.
From there those Trucks transport gasoline to the local service stations for retail sale to the Public meaning Us.

We will never know the Truth about Being Ripped Off by the Big Oil Corporations, Tesoro Refinery.
Even our local legistlators can't get a direct honest answer from the oil industry.

Just mention the issue of making Kenai Alaska a Point of Entry & witness how fast everyone runs away from that issue.
It's been discussed for decades but Nothing ever Happens.

SPW "Airborne"

Sam Von Pufendorf
Sam Von Pufendorf 01/04/13 - 01:21 pm
Internet use

Use the force ... or the internet.

Seek and ye shall find!

BRD. Gasoline/Diesel goes to Anchorage by pipeline. It is trucked locally from the terminal at the Tesoro refinery. The only trucks going over the roads are the ones from Nikiski to Seward, Homer, Cooper Landing, Anchor Point. Etc.

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