Pricey Gas Shuts Some USA Service Stations

One of the state’s largest independent gas station chains has temporarily closed the pumps at 41 of its 100 California locations, claiming an inability to make a profit without alienating its customers. Mark Conant, president of USA Gasoline Corp., warned that more closures could be on the way if the prices that independent companies such as USA pay for gas on the spot market remain 20 cents to 30 cents higher per gallon than the prices that stations affiliated with major oil companies are paying. “My price is today $2.20 per gallon for regular unleaded,” Conant said. The average retail price for self-serve regular gasoline in California as of Monday was $1.79 per gallon, according to the U.S. Energy Information Administration. “How do you think I’d look if I was across the street at $2.20 per gallon,” Conant asked. The spot price for gasoline and diesel is at an all-time high in Southern California, and independents are suffering more than major brands because they buy more on the volatile spot market. Conant said that no USA employees have been laid off because of the closures, noting that most of the stations include kiosks or convenience stores that remain open.

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