SitNews - Stories in the News - Ketchikan, Alaska


Ketchikan's High Gas Prices
By Kelly Needham


November 09, 2006
Thursday PM

There was an article in the KDN on Nov. 1st, about local gas prices not being artificially high, regardless of the fact that the national average was about $2.21 a gallon in October, and locally we have been paying about $3.09. There were quite a few reasons stated in this article, reasoning that a difference of $.88 a gallon is right where it should be. These reasons included, a fragmented US market, and the distance away of the large oil refineries, and that Ketchikan companies buy from Washington state. So, obviousely there is a "substantial" cost to transport this gas. Then, we have to take into account that this gas is stored here until it is distributed to retailers.

Stated in that article (pay attention here) was the fact that Anderes Oil stores about six weeks worth of product on hand, and receives product every month. Petro Marine reported close to the same situation. In fact, to quote Bob Cox of Petro Marine "So, if I'm selling gas to South Tongass (Service) today, that's probably a gallon of gas I bought in September," (which would've been within a month of that article being published). Distributors also average the price between older stock and new stock, according to Anderes. The article stated "The blending process results in price changes that move more slowly here than in quick-resupply markets - regardless of whether prices are moving up or down," but transportation and holding costs are only 2 of many factors figuring into the pump price, (pay attention here) crude oil costs also contribute.

So, all that said, I heard on the radio today that oil prices have risen, and it's expected to raise gas prices, but by this articles reasoning, we don't have to worry about it for about one month......right?

Kelly Needham
Ketchikan, AK

About: "Once paid $1.19 a gallon with my first vehicle"
(Webmaster's note: I once paid 25 cents per gallon for my first car.)


Related Info:

USA National Gas Prices

Alaska Gas Prices



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Ketchikan, Alaska