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Hoosier Retailer Justifies Gas Price Increase

November 10, 2010 by · Leave a Comment 

The executive director of the Indiana Petroleum Marketing and Convenience Store Association says retailers are not to blame for the recent spike in gas prices, WIBC, Indianapolis, reported. Gas prices in several Indiana communities have once again hit the $3 per gallon mark.

Scott Imus says the increase is directly related to a jump in crude oil prices, which have gone from around $75 a barrel to almost $90 in the past month.

He says that causes wholesale prices to increase.

Prices rose as much as 25 cents a gallon at some stations in Indiana last week. The average price of a gallon of unleaded gasoline in Indiana stood at $2.95 this week, up from $2.80 last week, according to Facts.com.

Indiana prices are now above the U.S. average. Nationally, a gallon of regular unleaded gasoline averaged $2.88 this week, up from $2.82 last week, according to Facts.com.

Imus also says retailers are the last to pass on the increased cost to consumers because station owners don’t want to be the first to hike pump prices.

He also points out the average profit last year in Indiana was about 6 cents a gallon, which Imus says doesn’t really cover credit card fees.

The national average profit is about 17 cents a gallon.

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