Questions about area gasoline prices remain unanswered

Posted: Thursday, March 24, 2005

The Clarion article, "Businesses feel gas price bump" in the March 18 paper has left me with more questions than answers. A local gasoline retailer claims that the high prices are hurting her business because, "People aren't moving as much, they're not driving as far, they're not buying gas as often" (demand going down).

A few paragraphs later, the senior commercial analyst for the Alaska Department of Natural Resources Oil and Gas Division says that the reason for the price hike is "when the demand for gasoline goes up, the price goes up."

The vice president of refining for Tesoro Alaska says that the wholesale price for gasoline between Nikiski and Anchorage is roughly the same. If that is the case, then why the 45 cent disparity between Anchorage and Nikiski? According to your article, AAA says that there are many hands in the pie between a barrel of oil and a gallon of gasoline. Who has a hand in between the wholesale price and the retail price?

I'll let you draw your own conclusions.

Clifford Smith, Kenai

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