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WWW arkcity.net
Web posted Wednesday, February 19, 2003


Most South Central Kansans appear to blame Venezuela situation for fast-rising gas prices
photo: community

Donita Clausen/Traveler

By JUDY WELCH
Traveler Staff Writer
jwelch@arkcity.net

Erle Coleman remembers when a gallon of gasoline sold for 20 to 25 cents during the 1950s. And he remembers when gasoline was plentiful during the 1970s and the price dipped briefly to just 19 cents a gallon. Now, he and other motorists are paying $1.57 a gallon in Winfield.

"The high price of fuel hits me two ways," said Coleman said, who works at General Electric. "First, it does cut into a tight budget because we have one son in college, one son entering college in the fall and one son preparing for college. Secondly, the airlines are already trying to recover from a huge loss and this rise in fuel costs will make it even harder for them to operate.

"If the airlines are not strong, my job security is not strong. Plus, if we do not have a lot of work in-house, we do not have a need for overtime work and so my income shrinks, " he said.

Coleman and his wife, Linda, live south of Winfield on Cowley 27. She drives to Wellington every day to work and the additional fuel cost is a noticeable increase in expenses. They're cutting expenses in other ways and eliminating non-essential services, such as cable TV. They aren't dining out as often or going to as many movies.

"I do not complain to the (employees) behind the counter because I know they do not have any control over the price, but I am mystified at the price increase because I do not have a clue as to what is driving it," he said. "I do know that a lengthy oil production strike in Venezuela has mostly caused our oil reserves to be low, but the 'pipeline' is full and some Arab countries are increasing production to help stabilize the price. I suspect, as I always do, that the price is being manipulated by the large oil companies. It feels like I am being legally ripped off."

Kim and Bill Waldorf of Arkansas City are getting hit hard by the rising cost of fuel. They are in business for themselves and he drives a semi. It's costing more each week to run the semi, so their profits are down.

"Since the closing of Future Beef, business has been slow. And, the first of the year is a slow time. People aren't ordering because of inventory," Kim Waldorf said. "The higher-price fuel is costing between $200 and $250 more each week."

Bill Waldorf believes OPEC (Organization of Petroleum Exporting Countries) oil exporters have cut oil production because the United States has so much oil in reserve. He and other truckers also believe the pending war and the Venezuelan oil strike are also contributing to the sharp increase in the price of fuel.

"Since this is a slow time of year anyway for what we're hauling, we're just having to cut back because the truck payments, insurance payments and fuel costs are still there," Kim Waldorf said. "We don't know from one week to the next week what our paycheck will be."

Karen and Rod Iverson drove to Dallas over the three-day weekend. The cheapest gas the Arkansas City couple saw was $1.52 a gallon near Ardmore, Okla. They paid $1.60 a gallon in Dallas.

"I don't know what to expect. It's not just one place the price is way up," Karen Iverson said. "And, after 9-11, everyone was out filling up."

She wonders, if war does start, if people will panic again, rush to the pumps and push the fuel price even higher.

"So far, it hasn't affected us as far as our travel. What I'm wondering about is this summer and boating," she said.

California has higher prices for fuel than any other state. Jan and Joe Mondzak are well aware of that. They live near Sacramento, where regular is selling for $1.85 a gallon. Premium – which they use – is running from $2.05 to $2.10 a gallon. Her former classmate, Deen Ruppelius, is paying just $1.49 in Wagoner, Okla.

"What really shot up is diesel fuel, which I use in my truck. It is $1.54," Ruppelius said. "I can't remember for sure, but it seems like diesel went up about 25 cents a gallon and gas about 15 cents."

On other hand, another classmate lives in Georgia, where the price of fuel is the lowest in the nation. Some places in Georgia are charging $1.47 or $1.48 a gallon.

"We have very small gasoline taxes here in Georgia because there is a law that sends all gasoline taxes directly to the State Department of Transportation, not to the state treasury," Richard Andrew said. "One thing I will say, Georgia has some of the best roads in the U.S."

Kansas consumers are paying 41 cents a gallon in taxes, according to Mike Felts of Felts Oil Co.

"The federal government gets 18.4 cents and the state gets 23 cents," he said. "At the street price today, there is not a nickel margin in there. You figure out where all the money is going."

The company has stations in Sedan, Burden, Udall, Caldwell and Winfield. When deciding his price he first looks at the competition, then at his costs.

The price "has been steadily going up. But it kind of goes up and down," Felts said. "Last week it was $1.65, that's because of the competition."

He believes the 10-week strike at the state oil company in Venezuela has pushed the price of oil up. The country was the fourth-largest supplier to the U.S. The strike has cut production by two-thirds.

"I think the anticipation or uncertainty of what is happening in the Middle East is definitely not helping any," Felts said.

The situation might be helped by President Bush making a statement that he will release some of the government's oil reserve in an emergency, according to Felts.

"It's a big, big old pot. It's a huge amount of oil. If he would say, in the event of war, he will probably release some to stabilize the oil price ... the price might at least level off and come down some," he said.

The U.S. Strategic Petroleum Reserve – and the salt caverns in four locations in Texas and Louisiana that hold the reserve – have about 600 million barrels of oil.

"The pumpers around here ought to be smiling big time. They're getting more than they have in years. They're getting more than $30 a barrel – a year ago it was half that," Felts said.

Ed McGowan at Rakies Oil and Sherri Hall at Apco East also believe the events in Venezuela, aimed at toppling President Hugo Chavez, had a huge impact on the rising cost of gasoline in this country.

"That's where all the problems started," McGowan said. "Until we get the oil supply back up, we're not going to get it any cheaper."

Gas was selling for $1.39 at the first of the year, McGowan remembers. It was $1.60 Tuesday at Rakies and $1.65 Monday at Apco East. Hall has seen the price rise about 50 cents recently.

"I think we're paying for Venezuela," she said.

Hall hopes the price of gas will start leveling off but is aware some "experts" are predicting the price will get up to around $2.25. Commuters to Wichita, in particular, gripe about the price they are forced to pay.

"If they are going to continue to work in Wichita, they're going to have to continue to pay the price," Hall said. "We're a spoiled people. We're used to getting what we want when we want it."

A.W. Haynes, above, owner, with his sons, of H H & H Granite Sales, Inc., from Elberton, Ga., fills up his truck with diesel fuel this morning at the Jump Start Convenience Store in Arkansas City. Gas prices vary from state to state. Some states are higher and some are lower, said Haynes. He has been on the road selling granite vases.


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