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Community News February 7, 2008
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Local Dealer Says:
Gas Prices To Rise, Drive Responsibly
By Caleb Byerly

Recent reports from the U.S. News & World Report suggest that within the coming spring and summer months, gas prices could continue to increase, all the way up to $4 per gallon. This nightmare scenario really puts pressure on our local privately-owned gas stations, which have to compete with corporate stores owned by chains.

Corner Stop Mini Mart owner Dominick Amodeo shared his knowledge of the industry and the rationale behind the higher fuel prices seen in rural areas such as South Royalton, Sharon and Bethel.

"Corporations have numerous stores to draw their profits from, so they can afford to keep their prices a few cents lower," Amadeo said. "If I tried to sell gas at their prices, I’d end up going broke."

The breakdown of fuel costs begins as drillers pull the crude oil from the ground in a foreign country, where most of our fuel comes from. This is where we hear about fuel being sold at $94 per barrel (as it is now, according to the Energy Information Administration). These barrels are then sold to refineries that turn the crude oil into specific products such as gasoline, heating oil and other products. Additives are added to the gasoline to make it burn cleaner and more efficiently in our automobile’s engine.

"You can buy gasoline without the additives directly from the refinery, which is cheaper," Amodeo said. "However, you get what you pay for."

The gasoline is then sold to suppliers like Leonard’s or Johnson & Dix, who then sell the gasoline to the gas stations. The gasoline is then taxed by the federal and state governments, which is reflected in about 38 cents per gallon in Vermont.

When the weather improves and people begin driving more, the Energy Information Agency expects gas prices to rise to record levels throughout the summer. However, there are a few tricks that may save you some money.

1) Make sure your tires are properly inflated. Having a poorly inflated tire makes the car work harder to maintain speed, which burns more gas.

2) Drive the speed limit. You can save 15% of your mileage by driving 55 mph on the highway rather than 65. And as that speed goes up, so does your gasoline consumption.

3) Drive defensively. By avoiding quick starts and sudden braking, you can increase your gas mileage by 33%.

4) Walk. Walking costs $0 per gallon, so if you can reasonably walk to get to the post office or the bank, do it.

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