Lockport Union-Sun & Journal Online

Business

May 29, 2008

HIGH GAS PRICES: Some non-digital pumps show prices for half a gallon

Gas prices have gotten so high, even some of the pumps can’t handle it. Some gas stations in New York state have older, non-digital fuel pumps that cannot figure out prices higher than $3.999⁄10 a gallon. With gas in the Lockport area shooting above $4 a gallon, that could present a problem for gas retailers.

Now those stations can apply for half-gallon pricing with the state, according to a news release from the state Department of Agriculture and Markets. Stations with older pumps can have prices on the pump based on a half a gallon of gas.

“The price of fuel is rising faster than our dispensers can calculate, in some instances,” said Patrick Hooker, commissioner of the department. “In order to keep some of our smaller and seasonal fuel retailers operating during times of $4 fuel, we are temporarily allowing stations to compute prices by using half the price per gallon.”

Signs advertising fuel prices must still advertise the price for a full gallon of fuel, but the price displayed on the pump would be half the per-gallon price, the department’s news release said. Many of the older style mechanical pumps use numbered wheels to display the gallons and total sale figures.

Under this regulation, the total charge for fuel will remain the same. The sign on front of the pump, as well as the signs on top of the pump and along the roads will remain at the full price per gallon to allow for easy price comparisons. The only difference would be that on the front of the pump, it would read “one half total sale” or “one-half price per gallon.” The total charge for a purchase would have to be calculated by doubling the price on the pump.

The release also said part of the problem results from a national shortage of replacement computers for the older pumps. The primary U.S. manufacturer of the equipment has a current backlog of 13 weeks for delivery. However, some local gas retailers with older pumps have had the pumps updated.

“It would have been too confusing (if the pumps were priced at half a gallon),” said Merle Snell, owner of Snell’s Service Station in Gasport. “The diesel pumps are still half a gallon though.”

Snell said his pumps were updated when gas was around $3.99 a gallon. He added the gasoline pumps were put in either the late ’80s or early ’90s. Snell also said there hasn’t been any confusion with the pricing on diesel fuel.

Thrifty Propane and Oil on West Avenue in Lockport also has older gasoline pumps, and signs that alert customers to the price of a half-gallon of gas. The sign on the pump says “double this amount” with an arrow pointing to the total on the pump.

The department’s division of weights and measures is now accepting applications for eligible retail stations to sell half-gallon fuel. Applications are available on the Department’s Web site at www.agmkt.state.ny.us and by clicking on “Fuel Pump Half-Pricing Request Form” or by calling 518-457-3146.

Gas prices don’t seem to be coming down anytime soon. AAA East Central said the average price of gasoline in the Lockport area was about $4.07 a gallon, a 15-cent increase from last week. Nationwide, gas is up to about $3.94 a gallon, as crude oil prices are well over $130 a barrel, AAA said.

Contact reporter Joe Olenickat 439-9222, ext. 6241.

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