New station in town|Murphy Express not affiliated with Wal-Mart
Published 12:00 am Sunday, April 5, 2009
Gasoline-blended fuel at service stations in Mississippi has grown exponentially in less than a year, according to the number of licenses issued by the state.
As of April 1, the Mississippi Department of Agriculture and Commerce had issued 64 permits to blend fuel with ethanol, covering stations scattered statewide, said agency spokesman Andy Prosser.
At most pumps, mixtures only up to 10 percent are offered so most traditional engines can handle its contents. So-called “flex-fuel” vehicles can handle up to 85 percent ethanol, which is offered at three public stations in the state. Prevalence of the E10 mixture has varied with gas prices since last summer, when 43 permits were active and regular unleaded sold for nearly $4 a gallon. The same gas has sold for about $1.99 this past week.
“Most stations, if gasoline is cheaper than ethanol blended fuel, (stations) will only serve 100 percent gasoline with no blends,” Prosser said, adding if gasoline prices rise to levels making E10 cheaper than 100 percent gasoline, then some stations may offer the blend for consumers if permitted by the state.
In Vicksburg, most E10 pumps are at branded stations owned by The Pantry Inc., which operates stores in 11 states under various names, including Kangaroo Express. By this summer, the area’s newest station — Murphy Express — could be in line for ethanol-blended gas.
Scheduled to open in May, the Murphy Express on Pemberton Square Boulevard will feature coffee and specialty fountain drinks inside its convenience store, spokesman Dory Stiles said.
Though the Arkansas-based service station operator is the exclusive fuel supplier to Wal-Mart stores nationwide, customers of the world’s largest retailer will not be able to use their store-based credit cards at the station, Stiles said.
Murphy Express is a larger-format station, unlike the smaller Murphy USA stations found on Wal-Mart properties. The soon-to-open station is across U.S. 61 South from Wal-Mart SuperCenter on the site of the former Thames Automotive dealership. An auto collision business has opened behind the station and the former dealership’s office space, which is for sale and unoccupied.
The company is one of 43 distributors in Mississippi licensed to blend ethanol in the fuel sold at its stations. Blends of up to 10 percent ethanol, or E10, at the station have not been ruled out entirely.
“A decision to offer it depends on a number of factors, including availability of ethanol in an individual market,” Stiles said.
Fuel pumps containing the mixture of the primary alcohol began appearing in Vicksburg late last year after the Legislature modified the definitions of allowable gasoline mixtures in the state to include ethanol.
The recently enacted federal stimulus bill increased tax credits for infrastructure to 30 percent of installation costs and included $300 million to promote E85 and other alternative fuels. Retailers have said the incentives need to be tweaked to include pumps capable of mixing it with traditional gas. As passed, incentives are only for E85-dedicated pumps.