OPEC to cut its production to raise prices|[10/11/06]
Published 12:00 am Wednesday, October 11, 2006
District 4 Supervisor Carl Flanders said Tuesday he may ask other board members to join him in signing a letter to managers of area service stations about local gas prices.
He said he may also invite them to address the county governing board and, possibly, the public, on costs being higher here than in nearby outlets.
“People are still getting gas for less in Tallulah, Clinton and Jackson,” Flanders said.
Prices at the pump in Vicksburg have fallen more than 40 cents per gallon in the past month and nearly a dollar since mid-summer, but still top prices in most of Mississippi and immediately across the river in Louisiana.
Supervisors have no power over what prices merchants charge for products, but could still vote to set a date and advertise for a public hearing, something other board members were not leaning toward.
“We have no control or authority over a private enterprise,” District 5 Supervisor Richard George said, adding that the scant number of local distributors compared to years past is likely to blame for the higher prices.
“At one time, you had an awful lot of competition,” he said.
District 1 Supervisor David McDonald was reached Tuesday in Houston visiting family. Prices he saw driving there ranged from $1.99 to $2.35, he said, making the small-town theory of higher pricing “not unique to Vicksburg,” he added.
McDonald still doubted a gathering of service station managers in any forum would do much to equalize prices with cities around it that have been cheaper.
Flanders said the gathering he has in mind would be civil because “the people I’d invite wouldn’t be loud or anything.”
A gallon of unleaded today averages $2.19 at stations in Vicksburg and Warren County, higher than Jackson at $2.12 and the statewide average of $2.14, according to AAA’s Daily Gauge Fuel Report. In Louisiana, the price of regular unleaded stands higher at $2.18, but still below the national mean of $2.25.
Distributors with current and past experience in Vicksburg largely have blamed an array of market-based forces for the consistent disparity, such as the small size of the Vicksburg market making the area less competitive and crude oil costs.
The Pantry Inc. of Sanford, N.C., the second-largest independent owner of convenience stores in the United States, owns eight service stations in Vicksburg, making it the market share leader here.
The cost of a gallon of unleaded fuel in Vicksburg hit a staggering $3.05 in August, mirroring a national trend that hit a similar peak as September began.
No local taxes are imposed on fuel sales in Mississippi. And the federal and state taxes that are collected are per-gallon, so they are keyed to consumption as opposed to price.
Most fuel taxes are earmarked for road maintenance and construction, but allocations are based on local need as opposed to local revenue. In other words, if less gas is sold in Vicksburg due to people seeking lower prices elsewhere, that would not necessarily cut funds available for road projects in the county.