Gas Prices Too High For Some Gas Stations

Gas prices keep creeping closer and closer to the $4 mark.  The national average for a gallon of regular gas set another record high Monday—$3.97.  Here in the Tri-Cities region, the average price dropped a penny over night to $3.84.

At some stations though, the pump may soon read two dollars.  That’s because stations with old analog pumps can’t charge more than $3.99.  Those pumps will sell by the half gallon until the pumps can be replaced.

High gas prices have reached their limit for some drivers.

“A lot of people aren’t driving now,” said Robert Proffitt, owner, Broad Street Volco.

It’s getting close for some gas stations too.

“We can’t go any higher than we are right now—$3.99,” Proffitt said.

Gas station owners like Proffitt will have to upgrade their old analog pumps to be able to ring up four dollars or more.

“They got parts ordered, computers ordered to fix the machine or the pumps,“ Proffitt said.

In the meantime, station owners in Virginia and Tennessee will be allowed to half-price their pumps and double it when the driver pays.

While some stations plan to upgrade their pumps, the high gas prices may drive smaller mom and pop stations out of the gas business all together.

“The only thing they can do now is to refurbish the whole computer system,“ said Chad Blackburn, manager, Mr. B’s Service Center.

The conversion can cost station owners several thousand dollars per pump.

“At that price and the money it takes to actually, we’ll never make any money on gas.  We’ll probably have to quit selling gas,“ Blackburn predicts.

That’s because gas station owners typically make only two to five cents per gallon.

“If we don’t have an inside business, we’re hurting,“ said Proffitt.

Virginia Governor Tim Kaine signed an executive order allowing stations to half price their gas through September 30th.  That will give them time to convert their pumps.

Tennessee gas station owners will be able to half-price their gas for thirty days from the day their equipment is rejected by an inspector.