Groceries, big boxes selling cheapest gas
Transcription
Groceries, big boxes selling cheapest gas
100 95 90 80 70 60 50 40 30 20 10 5 Product: ENQUIRER PubDate: 07-21-2008 Zone: Late Edition: 1 Page Name: A1.0 Time: 07-20-2008 22:57 User: jmeo1 Color: Cyan Black Yellow Magenta L O C A L B1 Strong winds and lightning rattle the area THE CINCINNATI ENQUIRER CINCINNATI.COM LN MONDAY, JULY 21, 2008 ‘DARK KNIGHT’ BREAKS RECORD Treasury chief: Banks are sound The Associated Press One comic-book hero, Batman, has beaten a counterpart at the box office, taking in $155.34 million during its first weekend to top the record set by “Spider-Man 3.” FOCUS ON PEOPLE A2 ‘The Dark Knight’ quiz, poll, photos and showtimes. Search: Batman WASHINGTON – Treasury Secretary Henry Paulson sought to reassure an anxious public Sunday that the banking system is sound, while bracing people for more troubled times ahead. “I think it’s going to be months that we’re working our way through this period – clearly But Paulson sees tough months ahead months,” he said. Paulson said the number of troubled banks will increase as they struggle to cope with big losses on bad mortgages. The government this month took over IndyMac after a run made it the largest regulated thrift to fail. “Of course the list is going to grow longer given the stresses we have in the marketplace, given the housing correction,” he said. “But again, it’s a safe banking system, a sound banking system. Our regulators are on top of it. This is a very man- ageable situation.” Paulson appeared on Sunday talk shows to remind people that deposits up to $100,000 are fully insured by the Federal Deposit Insurance Corp. “We’re going through a challenging time with our economy. This is a tough time. The three big issues we’re facing right now are, first, the housing correction which is at the heart of the slowdown; secondly, turmoil of the capital markets; and thirdly, the high oil prices, which are going to prolong the slowdown,” he said. See PAULSON, Page A8 Groceries, big boxes selling cheapest gas Must reads inside today’s Enquirer By Malia Rulon Enquirer Washington Bureau A defensive meltdown by the Reds gave the Mets a 7-5 win in the last of a fourgame series. Dusty Baker thinks the team could have done better. SPORTS C1 Hundreds will bring their ‘babies’ UC design students need scuba gear in learning to build structures for extreme environments. LOCAL B1 Also … Etiquette experts give pointers on how to be pleasant on the phone – tips that some of us apparently need. LIFE D1 Victory Bathing Solutions in Fort Mitchell sells walkin tubs and steam showers that especially appeal to older people and the disabled. BUSINESS A11 WEATHER High 90° Low 65° Strong storms COMPLETE FORECAST: B6 INDEX Four sections, 168th year, No. 103 Advice ............D2 Movies ............D5 Business .......A11 Obituaries .......B2 Comics ...........D4 Region ............B3 Editorial ..........B4 Sports .............C1 Lotteries ..........B6 TV ...................D2 Classified .........................................C8 Copyright, 2008, The Cincinnati Enquirer Portions of today’s Enquirer were printed on recycled paper Business, A11 m Economy changing lifestyles. Cincinnati.Com m Money-saving tips and news. Search: economy Lindners, Farmers, LaRosas give to GOP Defense let us down, Dusty says A sub-specialty: building in water Inside, online Big names put money into local campaigns Up Front How much do owners love their Porsches? You’ll find out Saturday in Oxford, when cars will strut their stuff. LOCAL B1 50 CENTS Photos by Jeff Swinger/The Enquirer Grocery-store gas stations such as the Western Hills Kroger, or discount retailers Costco or Sam’s Club, generally have the lowest pump prices, an Enquirer analysis shows. But buying requires a membership or a minimum of other purchases. By James Pilcher and Gregory Korte GAS PRICE SECRETS REVEALED D AY O N E jpilcher@enquirer.com and gkorte@enquirer.com Sam’s Club and Costco customers must pay an annual membership fee of up to $50 to get the lower prices. Businesses pay about $100 a year. Kroger requires customers to make $100 in purchases in a month to qualify for discounts of 10 cents or more a gallon. The strategy is to sell gas below market averages to drive people into the stores, where they will buy other products with higher profit margins. It’s a big advantage over traditional gas stations, where profits are razor-thin on fewer items. It also appears to be working: Cincinnati-based Kroger posted record earnings in April, May and June but only broke even on gas sales. The Enquirer will publish findings of the price analysis all week. On Sunday, a special report will explain how the gas market is rapidly changing, affecting prices you pay. Shopping for the lowestpriced milk? Check gas, too. Grocery stores and big-box discount retailers have the lowest gas prices in Greater CincinALL THIS WEEK nati and Northern Kentucky. The Enquirer will bring you An Enquirer analysis of daily findings of an in-depth analysis sales at 716 gas stations in May of gas prices in Greater Cincinnati and June found that regular, unand Northern Kentucky. leaded fuel sold for as much as COMING TUESDAY 10 cents a gallon less at nonCheapest day to buy gas traditional outlets than at brand-name stations. AVERAGE PRICE BY MAJOR BRAND Prices were provided by the counties in Kentucky; and Store (Number surveyed) Oil Price Information Service, a Dearborn County in Indiana. In $3.82 Costco (2) Wall, N.J.-based oil and gas all, 31,439 price points were an$3.84 Sam’s Club (3) marketing information firm, alyzed. Kroger (28) $3.88 and analyzed by The Enquirer During the survey period, Meijer (7) $3.89 to demystify local gas prices. unleaded gas was lowest at 33 Mobil (93) $3.89 The 716 stations represent local Costco, Sam’s Club and Speedway (80) $3.90 about 80 percent of all stations Kroger stores. What the averages don’t Regional Average $3.91 in Hamilton, Butler, Warren Sunoco (61) $3.91 and Clermont counties in Ohio; show, however, are the hidden BP (107) $3.92 Boone, Campbell and Kenton subsidies behind the low prices. Marathon (134) $3.92 CINCINNATI.COM, SEARCH: GAS Shell (82) $3.92 Source: Enquirer, Oil Price Information Service data, m Find cheapest gas at CinciNavigator m Learn tips for stretching your mileage regular unleaded gas sales at 716 stations in SW m Calculate your fuel costs m Tell us: Join the conversation about gas prices Ohio, N. Kentucky and SE Indiana in May and June The Arizona Republic Land, sea re-entries would be eased People who chafe at the cost of a passport or worry about carrying one to the beach soon will have a cheaper, easier option. The government is on the cusp of releasing passport cards that fit in a wallet and cost half the price of a new passport. About 350,000 Americans have applied for the new card, the latest step in ratcheting up security at the borders. People who apply now can expect a four-week wait for cards. The U.S. State Department expects the number of applicants to swell to 4 million by June 1, 2009. That’s when U.S. travelers cannot re-enter the country from Mexico, Canada or the Caribbean without a passport, a new passport card or an equivalent document. Starting in January, travelers could no longer re-enter the country from Mexico or Canada by verbally declaring their U.S. citizenship. They must carry valid travel and identification documents, but a Chateau Haut-Nadeau Bordeaux. Superieur 12 $ For more specials, visit: www.liquordirect.net 99 2005 Limited While Supply Lasts grace period remains in effect until next summer. Ultimately, millions of passport cards should be in circulation, helping day-trippers and frequent visitors who travel by land or sea. A regular passport is still required for air travel. The changes stem from the Western Hemisphere Travel Initiative, one of a string of post-Sept. 11 security requirements. See PASSPORT, Page A8 Chateau Haut-Guiraud Haut-Medoc 14 $ 99 2005 Limited While Supply Lasts How and where to get the new passport cards: Cost: $45 for adults; $35 for minors; $20 for all passport holders. Process time: About four weeks. Renewal time: 10 years for adults, five years for those under 18. Where to get them: There are 9,300 places nationwide, which you can search by ZIP code at iafdb.travel.state.gov. For more information: Go to travel.state.gov/passport. Chateau Pey La Tour Bordeaux. Superieur 16 $ Bush backers benefit Schmidt, Chabot Rep. Jean Schmidt has received more than $38,000 from at least 10 members of the Lindner family, well-known in GOP circles for the hundreds of thousands of dollars Carl H. Lindner III and Carl H. Lindner Jr. raised for President Bush. Rep. Steve Chabot also benefited from the Lindner family’s largess. He has received $14,000 from five members of the Lindner clan. Other big-time Bush fundraisers also stepped up to the plate for Schmidt, including Richard T. Farmer, chairman of the board at Cintas Corp., who was dubbed a “ranger” in 2004 for raising $200,000 for Bush. Farmer and his wife, Joyce, together donated $4,600 to Schmidt. Gary Heiman of Standard Textile Co. and his wife, Kim, donated $6,900 to Schmidt. Heiman was named a “pioneer” for raising $100,000 for Bush in 2004. Predecessors, colleagues step up Schmidt also got financial backing from her two predecessors in the 2nd Congressional District. Former Rep. Willis D. Gradison Jr. gave $500 and former Rep. Rob Portman of Terrace Park gave $2,000. Portman also contributed $3,300 to Chabot over the election cycle. Additionally, two of his former chiefs of staff – Bob Schellhas and Rob Lehman – contributed $500 each to Chabot. See CAMPAIGNS, Page A8 Passport card can fit in wallet How to get one By Sean Holstege WASHINGTON – The candidates in Cincinnati’s two congressional districts together raised more than $1 million during the past three months – and spent half that much. The money came from family members, bigtime President Bush supporters and a Cincinnati doctor linked to the late-term abortion procedure opponents call “partial-birth” abortion. Besides regular office expenses, the money went to pay for a private jet, as well as campaign cups, T-shirts – and temporary tattoos. Here are the highlights, gleaned from the latest batch of reports to the Federal Election Commission, released last week. The reports cover April, May and June. 99 2005 Limited While Supply Lasts Obama, in Afghanistan, calls for shifting troops Sen. Barack Obama met with Afghanistan’s president in Kabul on Sunday and called on the Bush administration to redeploy thousands of troops there from Iraq. The high-profile trip, Obama including Iraq next, was designed to bolster Obama’s credentials on war and foreign policy. POLITICS A5 These are our Everday Low Prices! COVINGTON 670 W. 3rd St. 859-291-2550 FT. THOMAS PLAZA Exit #2 off I-471 859-781-8105 all prices include tax! Free Wine Tastings Fri. 4-8pm Sat. 2-6pm This week’s wines: Brown Bag/ Brown Forman Wines 100 95 90 80 70 60 50 40 30 20 10 5 Product: ENQUIRER PubDate: 07-22-2008 Zone: Late Edition: 1 Page Name: A1.0 Time: 07-21-2008 22:47 User: jmeo1 Color: Black Yellow Magenta Cyan S P O R T S C1 Reds blow game in top and bottom of 9th, lose 6-4 THE CINCINNATI ENQUIRER CINCINNATI.COM LN TUESDAY, JULY 22, 2008 GAS PRICE SECRETS REVEALED MELLENCAMP D AY T W O Weekend increases start building Wednesdays jpilcher@enquirer.com and gkorte@enquirer.com Up Front Must reads inside today’s Enquirer It’s all about the fans, Chad says Chad Johnson is promoting his DVD, but he’s also taking time to review his sniping about the Bengals. He’s not sorry about his comments, but he’s done. SPORTS C1 ALL THIS WEEK The Enquirer will bring you findings of an in-depth analysis of gasoline prices in Greater Cincinnati and Northern Kentucky. Cheapest day to buy gas: Tuesday By James Pilcher and Gregory Korte After John Mellencamp plays Riverbend Wednesday, go to Cincinnati.Com to give your review. Search: Mellencamp Inside: For band member Miriam Sturm (above), the show is a return home. Life, D1 Call it Thrifty Tuesday. Week after week for the past two months, Tuesday proved to be the cheapest day to buy regular unleaded gasoline in Greater Cincinnati and Northern Kentucky. Most expensive day: Wednesday. An Enquirer analysis of daily sales at 716 stations in May and June found that regular fuel sold for an average 3 cents a gallon less on Tuesdays than on Wednesdays. Prices were provided by Oil Price Information Service, a Wall, N.J., marketing information firm that tracks U.S. wholesale and retail oil and fuel prices. The analysis shows that local prices consistently increased Wednesday – by 16 cents a gallon overnight May 7. Prices typically would remain high through the weekend as motorists filled up for weekend jaunts. Then prices would start to fall to a low by Tuesday, before shooting up on Wednesday and restarting the cycle. By raising prices Wednesday, dealers could start to take advantage of the upcoming weekend demand, while making up for profit missed during the “cheap” days. Experts say gas always has been cheapest midweek, when demand is lowest. But the exact cheapest day is likely to change at any moment, without notice, they say. “It’s almost like you have to look at it hourly to get any sense of where it’s going,” says Matt Lewis, an economics professor at Ohio State University. “But they always do it when demand is low – you’ll never see that on a weekend,” he says. The Enquirer is publishing findings of the price analysis all week. Sunday, a special report will explain how the gas market is rapidly changing, affecting prices you pay at the pump. Eminent domain Two years after court decision Owner’s legal victory leaves land in limbo Assault with peanut alleged The Enquirer/Michael E. Keating Saved by a court ruling, the last house at the Rookwood Exchange site is vacant, and the project is in deep freeze. WEATHER High 86° Low 62° A thunderstorm COMPLETE FORECAST: B8 INDEX Four sections, 168th year, No. 104 Advice ............D2 Movies ............D5 Business .........A6 Obituaries .......B4 Comics ...........D4 Region ............B3 Editorial ..........B6 Sports .............C1 Lotteries ..........B8 TV ...................D2 Classified ....................................C6-10 First Run Classified ...........................A8 Copyright, 2008, The Cincinnati Enquirer Portions of today’s Enquirer were printed on recycled paper NORWOOD – In a rural setting, few would take note of an11-acre site with nothing on it but a vacant, boarded-up two-story house and an expanse of high grass and weeds. But in the bustling urban environment at Edwards and Edmondson roads in Norwood, the site provokes a lot of puzzled looks and questions. “It’s horrible, absolutely horrible,” said Cassie Armstrong, who lives in the neighborhood on Edwards Road in Oakley. Added resident Charles Smith: “I’d like to see something done with it. I don’t know what.” He paused and smiled. “Maybe they could plant corn there and sell it.” Six years ago, the Rookwood Partners announced plans to build the Rookwood Exchange, a $125 million complex of offices, stores and condos, on the property. When seven of 71 home and business owners refused to sell, the city of Norwood used eminent domain to seize their properties, sparking a long, bitter, nationally watched legal battle. Saturday, it will be exactly two years since the Ohio Supreme Court ended that battle with a landmark decision rejecting Norwood’s use of eminent domain for economic development. The high court’s ruling has resonated far beyond Norwood, a city of almost 20,000 residents that’s surrounded by Cincinnati. NORWOOD Williams Ave. OAKLEY 71 Markbreit Ave. Norwood eminent domain site Ed mo nd Rd. son Rookwood Commons/ Rookwood Pavilion Edwards Rd. Lead paint in older homes continues to be a health hazard. LIFE D1, D6 skemme@enquirer.com S mit h R d . Social Security has a new online calculator. NATION & WORLD A2 Monday Tuesday $3.911 $3.898 $3.890 $3.917 Wednesday Thursday $3.909 Friday $3.915 Saturday $3.914 Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Sheriff cuts beds, patrols jlbrown@enquirer.com By Steve Kemme The $550,000 indecency fine against CBS for Janet Jackson’s 2004 breast flash was thrown out. NATION/WORLD A3 Sunday BUSINESS, A6 m Oil profits hardly go to exploration. CINCINNATI.COM m Find cheapest fuel at CinciNavigator. m Video: Best day to buy. m Share thoughts online. m Read Monday’s story: Grocers, big boxes have cheapest gas. SEARCH: GAS COMING WEDNESDAY m The value of streetcorner competition. By Jessica Brown He’s 16. She’s 42 and pleads guilty Also … AVERAGE PRICE BY DAY OF THE WEEK Inside, online But metal detectors stay at courthouse A woman tried to cram a peanut into the mouth of her highly allergic neighbor, then vandalized her car, the neighbor claims. LOCAL B2 A former employee of West Clermont schools pleaded guilty to giving marijuana to a boy she had sex with. LOCAL B1 50 CENTS di Ma Wasson Rd. d. R son HYDE PARK CINCINNATI Detail See NORWOOD, Page A5 The Enquirer ‘You look at the site today and think about what it could have been for the City of Norwood, and you know it will never be that now.’ The Hamilton County sheriff may be closing down floors at the jail and ordering cruisers parked, but it looks like the metal detectors will be spared. The leaders of several county departments in secure buildings agreed Monday to chip in the roughly $100,000 cost for deputies to operate the devices. Sheriff Simon Leis said last week that he would do away with the service Aug. 1 due to mid-year budget cuts. Leis, who must cut $2.2 million from his budget, is also closing floors of the Clerk of Queensgate jail and instructing patrol Courts Greg deputies to park their cruisers for 30 min- Hartmann utes each hour to save gas. led efforts “We can’t cut much more,” Leis said. to keep the “Someone has to find a solution to the metal deproblem.” tectors. County Commissioners last week cut all departments’ budgets by 6 percent, or a total of $6.9 million, to avoid a fiscal emergency. The county is projecting a $12 million budget shortfall by the end of the year because of the sluggish economy. Clerk of Courts Greg Hartmann, whose office is in the courthouse, spearheaded the effort to save the metal detector service. Weapons are confiscated at the machines almost daily. “It’s in the public’s interest that we continue to provide security for the jurors who serve on juries and the witnesses that appear in court,” Hartmann said. Navy judge bars evidence from coercion By Mike Melia The Associated Press Trial begins for bin Laden’s driver GUANTANAMO BAY NAVAL BASE, Cuba – The judge in the first American war crimes trial since World War II barred some evidence Monday that interrogators obtained from Osama bin Laden’s driver, ruling that he was subjected to “highly coercive” conditions in Afghanistan. But Judge Keith Allred, a Navy captain, left the door open to statements Salim Hamdan made at Guantanamo, despite defense claims that all his statements were tainted by abuse including sleep deprivation and solitary confinement. Hamdan, captured at a roadblock Hamdan in Afghanistan in November 2001, pleaded not guilty at the start of a trial that will be closely watched as the first full test of the Pentagon’s system for prose- cuting alleged terrorists. He faces a life sentence if convicted of conspiracy and aiding terrorism. The chief prosecutor for the tribunals, Army Col. Lawrence Morris, said the loss of some of Hamdan’s statements will not keep the trial from going forward. “It does not reduce my confidence in our ability fully to depict Mr. Hamdan’s criminality,” he told reporters. “We’re fine.” The judge said the prosecution cannot use a series of interrogations at the Bagram air base and Panshir, Afghanistan, because of the “highly coercive environments and conditions under which they were made.” At Bagram, Hamdan says, he was kept in isolation 24 hours a day with hands and feet restrained, and soldiers prompted him to talk by kneeing him in the back. He says his captors at Panshir repeatedly tied him up, put a bag over his head and knocked him to the ground. See COERCION, Page A5 See SHERIFF, Page A5 Businessman sentenced 8 months for hiring illegal immigrants The owner of Spectrum Interiors was sentenced Monday to eight months in prison for using illegal immigrant labor. Jeff Wolnitzek and his Crescent Springs-based contracting business will forfeit $2 million. U.S. District Judge David Bunning called Wolnitzek’s business practices “cheating” and said businessmen like him contribute to the illegal immigration problem. LOCAL B2 THE BIGGEST 800-540-0921 WED-SAT, 9AM-9PM SUNDAY, 11AM-5PM For More Info & Search For A Vehicle: 1099 LILA AVE., MILFORD, OH www.29Down.com *STK# 55322Z, 2003 CHEVY ASTRO. SELLING PRICE $5510. $29 DOWN, $99 A MONTH FOR 60 MONTHS AT 5.99% APR. ALL OTHER TERMS VARY BASED ON YEAR, MAKE AND MODEL. PLUS TAX, TITLE AND DEALER FEES. WITH APPROVED CREDIT. 740 BEACON SCORE OR ABOVE. SUBJECT TO PRIOR SALE. 0000278867 USED CAR EVE NT IN THE ARE A! SALE HOURS 100 95 90 80 70 60 50 40 30 20 10 5 Product: ENQUIRER PubDate: 07-23-2008 Zone: Late Edition: 1 Page Name: A1.0 Time: 07-22-2008 22:34 User: jreedy Color: Cyan Black Yellow Magenta L O C A L B1 ‘Extreme Makeover’ family gets even more good news THE CINCINNATI ENQUIRER CINCINNATI.COM LN WEDNESDAY, JULY 23, 2008 Competition shaves pennies at pump If there are few stations, you’ll pay more for fuel, analysis finds By James Pilcher and Gregory Korte jpilcher@enquirer.com, gkorte@enquirer.com Dining: Real Chinese food is foreign to most Americans. Where to find it here. D1, D3 Browse our recipe finder to find all the ingredients you need for a quick and easy meal. Search: recipes After the cost of crude oil, competition is the No. 1 driving force behind what you pay at the pump. The more stations competing nearby for your business, the less you pay. An Enquirer analysis of daily sales at 716 area gasoline stations in May and June found that regular unleaded fuel was about a penny a gallon less at stations with at least one competitor within 1mile, compared with stations with rivals farther away. Prices were obtained from Oil Price Information Service, a Wall, N.J.-based marketing information firm that tracks U.S. wholesale and retail oil and gas prices. GAS PRICE SECRETS REVEALED D AY T H R E E Coming Thursday: Wide price differences within brands. Competition helped influence prices for the entire region as well. The analysis generally found lower prices in Greater Cincinnati and Northern Kentucky suburbs, where the concentration of stations is higher than in the city. Consumers in the urban core and lesspopulated parts of outlying Boone and Warren counties pay higher-than-average prices. Kentucky’s rural ZIP code 41092, which includes Verona and just two stations reporting, had the highest average price at $4.06 a gallon. Ohio’s ZIP code 45011, which includes populous Hamilton and 16 reporting stations, had one of the lowest average prices, $3.86 a gallon. The Enquirer is publishing findings of the price analysis all week. Sunday, a special report will explain how the gas market is rapidly changing, affecting prices you pay at the pump. Must reads inside today’s Enquirer NAACP happy with Cincinnati police It wasn’t that long ago that the reaction to Cincinnati police might have been very different. But the national NAACP convention gave them an ovation. LOCAL B1 Bengals get ready for a new season Freddie, Fannie bailout: $25B The proposed rescue of the nation’s two mortgage finance giants would cost taxpayers $25 billion. NATION A3 Mom admits guilt in shooting death Tinisha Jones pleaded guilty to killing the mother of a child who got in an argument with hers. LOCAL B2 High 84° Low 58° Partly sunny COMPLETE FORECAST: B8 $3.910 $3.905 $3.900 -0.5 mile 1 mile 1.5 2 2.5 +2.5 miles miles miles miles DISTANCE FROM NEAREST COMPETITOR Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June jpilcher@enquirer.com The Associated Press/Jae C. Hong Democratic presidential candidate Barack Obama, accompanied by Sen. Jack Reed (second from right), D-R.I., and Sen. Chuck Hagel, R-Neb., speaks Tuesday at the citadel in Amman, Jordan. Compromise, Obama tells old Mideast foes Says Palestinians, Israelis too weak on peace initiative By David Espo The Associated Press AMMAN, Jordan – Democratic presidential contender Barack Obama stepped into the thicket of Mideast politics Tuesday, declaring in Jordan that neither the Israelis nor the Palestinians are strong enough internally to make the bold concessions necessary for peace. Obama said he would work to bring the two sides together “starting from the minute I’m sworn into office.” But he cautioned that it was “unrealistic to expect that a U.S. president alone can suddenly snap his fingers and bring about peace in this region.” After meeting with Jordan’s King Abdullah II, Obama flew to Israel for talks with Israeli and Palestinian leaders. Upon his arrival in Jerusalem, he spoke of a “historic and special relationship between the United States and Israel, one that cannot be broken” and one that he hoped to strengthen as president. See OBAMA, Page A9 Inside, online Associated Press/Carolyn Kaster Republican presidential candidate John McCain turned up the heat Tuesday on Obama at a town hall in New Hampshire. Page A4 m McCain touts energy alternatives, says off-shore drilling a must for national security and lower fuel prices. Cincinnati.Com m Stay up to date with the latest local and national news on the presidential election, and sign up for the Politics Extra newsletter on our special page. Search: election Medic-alert button didn’t save dad By Janice Morse jmorse@enquirer.com Fire death spurs questions about service levels Copyright, 2008, The Cincinnati Enquirer WEST CHESTER TWP. – Robert Hunter died in a house fire last weekend even though he had hit a personal medical-alarm button to summon help. But had Hunter contracted with his alarm company to call 911 – or to call his daughter only? The answer to that question might have meant the difference between life and death, Hunter’s daughter, Debbie Marsh, said Tuesday. “I should not have lost my dad. That’s how I feel,” Marsh, 43, of West Chester, said as she stood crying out- side the fire-gutted shell of her father’s home. “When you pay for a service like that, you feel like you’re protected, you’re safer.” Her father, 66, died at Bethesda North Hospital after the fire. His $130,000 home, rebuilt after Hunter and his family survived a 1974 tornado, was a total loss. Such a situation shows the importance of older people and caregivers understanding details of any contract, said Kelly Keller, Ohio spokeswoman for the AARP. Portions of today’s Enquirer were printed on recycled paper $3.915 By James Pilcher INDEX Six sections, 168th year, No. 105 Advice ........... D2 Movies ........... D7 Business . A10-11 Obituaries ...... B4 Comics .......... D6 Region ........... B3 Editorials ........ B6 Sports ............ C1 Lotteries ......... B8 TV .................. D2 Classified ............................. E1-6, F1-6 First Run Classified .......................... C6 $3.920 PAGE A10 m Crude falls to earlyJune levels. CINCINNATI.COM SEARCH: GAS m Find the cheapest fuel at CinciNavigator. m Use calculators to figure your fuel costs. m Learn tips for boosting your mileage. m Read previous stories. More positions are available – but not enough for seekers The Bengals are brimming with their usual preseason optimism. Columnist Paul Daugherty talks about “moving forward.” SPORTS C1 AK Steel reported record operating profits, and its stock went down. Fifth Third reported its first quarterly loss this decade, and its stock went up. BUSINESS A10 Prices are lower when stations have nearby rivals. $3.925 Jobless rate rises in region Up Front AK Steel, 5/3 report earnings Inside, online VALUE OF NEARBY STATIONS “You have to ask the right questions, and make sure that what you are buying is what you thought it was – whether you’re buying a car or buying a medicalert service,” Keller said. About 10:30 p.m. Friday, Hunter activated his personal help button, sending a signal to the alarm company, Marsh said. A company representative later called Marsh and told her that Hunter couldn’t be reached via phone or through an intercom, Marsh said. See DEATH, Page A9 •HOME HOME APPLIANCES •HEATING/COOLING HEATING/COOLING •WATER WATER HEATERS TheComfortZone.com TheComfortZone.com 9 942-ZONE 42-ZONE Local unemployment jumped to a 2½-year high in June, with a large influx of new workers coming into the work force but employers creating only 2,000 jobs. The 15-county region’s June jobless rate was 6 percent, according to data released Tuesday by the Ohio Department of Job and Family Services – the highest since February 2005. The rate jumped from 5.2 percent in May and 5.3 percent in June 2007 and was the biggest monthly rise since June 2004. The numbers were not seasonally adjusted, which means that the data show the traditional spike in new job entrants from area high schools and colleges. About 11,000 new job seekers entered the work force during the month. The slow job creation shows that “the economy is not expanding fast enough to absorb the workers wanting jobs,” Miami University economics professor Dennis Sullivan said. “We usually see these seasonally unadjusted spikes smooth out, but it wouldn’t surprise me that unemployment starts to rise even as those people get jobs (and) as we start to get experienced workers show up in the job-seeker pool.” The reading also pushed the regional rate above the nation’s, which was 5.7 percent in June (up from 5.2 percent in May and 4.7 Cincinnati.Com m Get tips for mitigating the high cost of living, and share your ideas. m See the latest news on the economy. m Find personal finance tips. Search: economy percent in June 2007). The 15 counties are Brown, Butler, Clermont, Hamilton and Warren in Ohio; Boone, Bracken, Campbell, Gallatin, Grant, Kenton and Pendleton counties in Kentucky; and Dearborn, Franklin and Ohio counties in Indiana. The new numbers were broken down from data released Friday. In Southwest Ohio, job creation was particularly weak while new workers flooded the market. The result: big increases in jobless rates for Butler, Clermont, Hamilton and Warren counties. Butler’s jobless rate rose to 6.2 percent – the worst in the region – from 5.3 percent in May, because the county added 100 jobs while 1,700 people joined the labor force. Ohio’s jobless rate in June shot up to 6.7 percent, from 6.0 percent in May and 5.8 percent in June 2006. Unemployment figures for individual Kentucky counties won’t be released until next week. But the statewide rate there rose to 6.3 percent in June as compared with 6.2 percent in May and 5.5 percent in June 2006. Beijing Games next month Olympians’ families find trip costly Family members of the seven Olympians who are competing next month in China are excited about their loved ones heading to Beijing. They just wish that they could go, too. So far, few can afford the up to $8,000 that it costs to travel halfway around the world. Some are scrambling to come up with the cash for airfares, hotels, passport and visa fees, event tickets and more. Some are even planning fundraisers. SPORTS C1 H HOT OT S SUMMER UMMER S SAVINGS! AVINGS! FR A/C EstiEE m Online!ates 0000272614 IN LIFE WEATHER 50 CENTS 100 95 90 80 70 60 50 40 30 20 10 5 Product: ENQUIRER PubDate: 07-24-2008 Zone: Late Edition: 1 Page Name: A1.0 Time: 07-23-2008 22:39 User: bmullins Color: Cyan Black Yellow Magenta BUSINESS A9 Kroger pulls jalapeños after FDA warning on salmonella THE CINCINNATI ENQUIRER CINCINNATI.COM LN THURSDAY, JULY 24, 2008 FAMILY DAY Prices vary widely within same brand Diversity of store locations, ownership accounts for difference By James Pilcher and Gregory Korte jpilcher@enquirer.com and gkorte@enquirer.com Adam Dunn and his teammates enjoyed Family Day activities before Wednesday’s game. Click through a gallery of images at Cincinnati.Com. Search: Reds Bronson Arroyo wins his fifth straight. SPORTS C1 50 CENTS You know the sinking feeling: You fill up with gas, then find the same brand selling for less down the road, on the same day. An Enquirer analysis of daily sales at 716 area gas stations in May and June found prices for regular unleaded gasoline routinely varied by at least 11 cents a day within major brands. BP prices varied the most: The data showed a 38-cent average daily difference between lowest and highest prices at 107 BP outlets in Greater Cincinnati and Northern Kentucky. The prices were provided by Wall, N.J.based oil and gas marketing information firm Oil Price Information Service. The 716 stations surveyed represent about 80 percent of all gas outlets in the region. franchisee chains and company-owned stores. That makes for scores of decision-makers in pricing all over the region, creating daily differences. Other brands operate the same way, especially Shell. That brand primarily had been sold regionally by Ameristop, which went bankrupt in November. The Ameristop name survived, however, and now, several owners sell Shell under the Ameristop name. In addition, Illinoisbased Road Ranger recently bought and converted 11 Ameristop stations, mostly in Northern Kentucky. The Enquirer is publishing findings of the price analysis all week. On Sunday, a special report will explain how the gas market is rapidly changing, affecting prices you pay at the pump. GAS PRICE SECRETS REVEALED D AY F O U R Coming Friday: Is gasoline near the interstate cheaper or more expensive? Typical drivers may not see such a price spread on a daily commute. But the price difference is possible because stations surveyed are spread across as many as 50 miles, in eight counties, in vastly different urban, suburban and nearly rural areas. BP has the biggest variety of sales points, including independent owners, AVG.DAILY DIFFERENCEWITHIN BRANDS Brand Avg. diff. BP Marathon Shell Mobil Sunoco Kroger Speedway Unbranded Exxon Meijer Thorntons Swifty Food Mart .38 .29 .25 .25 .24 .21 .20 .15 .12 .11 .11 .11 Avg. Low Avg. High $3.74 $3.77 $3.80 $3.78 $3.80 $3.75 $3.77 $3.82 $3.84 $3.82 $3.82 $3.80 $4.12 $4.06 $4.05 $4.03 $4.04 $3.96 $3.97 $3.97 $3.96 $3.93 $3.93 $3.91 Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Inside, online BUSINESS A11 m Prices for oil, other commodities falling. CINCINNATI.COM SEARCH: GAS m Find the cheapest gas at CinciNavigator. m Use calculators to figure your fuel costs. m Learn tips for stretching your mileage. m Tell us: What do you want to know about gas pricing? m Read previous stories in the series. State budget benefits cats GOP calls Strickland pick a ploy Ohio is chipping in $1.5 million for the zoo’s Cat Canyon and a breeding facility for small wild cats in Warren County. LOCAL B1 By Howard Wilkinson Up Front DOLLY HITS, LEVEES HOLD Must reads inside today’s Enquirer We’re still No. 1 … in airfares The average cost of a trip originating at CVG was $535, while the national average was $332. BUSINESS A9 Raussen’s new state job may open up House seat for Dems hwilkinson@enquirer.com Getting into jail gets a bit harder The Butler County sheriff wants to reduce the number of misdemeanor offenders in his jail, because it costs money each time the door swings open. LOCAL B1 Tune in to find out why he’s popular “I’m a flashy guy. Very suave,” says WIZF-FM deejay “Don Juan Fasho.” (As in, for sure.) He’s the region’s top-rated latenight radio personality. LIFE D1 Also … Public protests will be permitted when Beijing hosts the Olympics next month, but there will be rules and restrictions. WORLD A7 WEATHER High 87° Low 62° Mostly sunny The Associated Press/The Dallas Morning News, Erich Schlegel Brownsville schools employee Ramon Hernandez helps Diana Sepulveda while she carries her son Joshua Gutierrez to a shelter Wednesday as Hurricane Dolly hits Brownsville, Texas. Levees holding back the Rio Grande were standing pat despite the heavy rain and 100 mph winds, easing fears of massive flooding. Story, A2 House advances housing rescue after Bush removes veto threat Inside, A2 By Sue Kirchoff USA Today WASHINGTON – The House on Wednesday approved compromise legislation to shore up mortgage giants Fannie Mae and Freddie Mac while helping hundreds of thousands of homeowners refinance into more affordable loans. The measure now goes to the Senate, where some conservatives want to delay a final vote. The 272-152 House vote came hours after President Bush dropped his threat The bill would ease some problems, but provide only modest benefits for home buyers or borrowers facing foreclosure. to veto the measure unless Democrats eliminated a $4 billion fund to help local governments buy and redevelop foreclosed homes. Bush had argued the neighborhood grants would benefit bankers and lenders. But the White House said a showdown with Congress over the proposal would be ill-timed. See HOUSING, Page A8 Raussen Pillich year-old from Montgomery who was a special assistant to the president in the Bush White House and now heads former Congressman Rob Portman’s political action committee. m Tom Weidman, a Sycamore Township trustee. Alex Triantafilou, the Hamilton County GOP chairman, said he is putting together a screening committee, which will likely begin interviewing candidates for the 28th Ohio House District next week. Under Ohio election law, the party has until Aug. 20 to choose a replacement for Raussen on the November ballot. Raussen, who will earn $115,000 in his new job, will work with Ohio’s insurance companies to help them expand their Ohio operations, according to Keith Dailey, a Strickland spokesman. See RAUSSEN, Page A8 Fugitive in the woods, on the run COMPLETE FORECAST: B8 Chris Crosby has eluded authorities since June 12 INDEX Five sections, 168th year, No. 106 Advice ........... D2 Movies ........... D5 Business ... A9-11 Obituaries ...... B4 Comics .......... D4 Region ........... B4 Editorials ........ B6 Sports ............ C1 Lotteries ......... B8 TV .................. D2 Classified ..................................... E1-6 First Run Classified .......................... C3 By Barrett J. Brunsman bbrunsman@enquirer.com Copyright, 2008, The Cincinnati Enquirer Portions of today’s Enquirer were printed on recycled paper Treasury Secretary Henry Paulson said the bill’s “wasteful” provisions were outweighed by the need for expanded Treasury power to make emergency loans to, or buy stock in, Fannie Mae and Freddie Mac. The companies, which hold or back half of all U.S. mortgages, have taken a financial bath as home prices plummet and foreclosures soar. While Fannie Mae and Freddie Mac’s regulator says they have sufficient capital, there are concerns they could need help. While the Ohio Republican Party was crying foul over Gov. Ted Strickland hiring GOP state Rep. Jim Raussen of Springdale to a newly created state job, Republicans in his northern Hamilton County district were lining up to replace him. Strickland, a Democrat, on Tuesday chose Raussen – who was running for a fourth and final term in the Ohio House – to be the state’s director of insurance and financial development. It was a move that Republican leaders said was a ploy to help Raussen’s opponent, Democrat Connie Pillich, win the 28th Ohio House District seat this fall. By Wednesday morning, three Republicans in the House District, which includes most of Cincinnati’s northern Hamilton County suburbs, had told Hamilton County Republican leaders they are interested in running in Raussen’s place: m Rick Bryan, a Blue Ash councilman and former mayor who is executive director of the Wellness Community. m Andrew Ciafardini, a 31- Provided photo Chris Crosby has been on the run since failing to show up for sentencing June 12. Authorities say he’s been spotted on horseback and has been receiving help. BATAVIA – Chris Crosby, the bail-jumping burglar who has been spotted on horseback while eluding police for 1½ months in Clermont County, has flirted with the idea of surrendering. “He has said more than one time through secondary sources that he planned to turn himself in,” said Sheriff A.J. “Tim” Rodenberg. “Each time he said it … he’s failed to show up.” While that’s frustrating, “he’s just delaying the inevitable,” Rodenberg said. Everywhere the sheriff goes these days, the first thing people ask him is whether Crosby, 25, has been apprehended. A resident of Ohio 232 in the Laurel area of Monroe Township, Crosby has been on the lam since June 12. He failed to show in Common Pleas Court for sentencing by Judge Victor M. Haddad. Crosby pleaded guilty May 12 to five charges: safecracking, grand theft, burglary and two counts of receiving stolen property. He faces up to 14½ years in prison on the first three charges alone, plus a fine of up to $30,000. From the beginning of the year through Monday, 309 arrest warrants were issued by Clermont County judges after someone failed to show for a criminal hearing in Common Pleas Court or a meeting that might involve a probation violation. See CROSBY, Page A8 If you see him Anyone who sees Chris Crosby should call the Clermont County Communications Crosby Center at 513-732-2231. Those with information that could help in the search should call the sheriff’s office at 513-732-7545. THE BIGGEST 800-540-0921 WED-SAT, 9AM-9PM SUNDAY, 11AM-5PM For More Info & Search For A Vehicle: 1099 LILA AVE., MILFORD, OH www.29Down.com *STK# 55322Z, 2003 CHEVY ASTRO. SELLING PRICE $5510. $29 DOWN, $99 A MONTH FOR 60 MONTHS AT 5.99% APR. ALL OTHER TERMS VARY BASED ON YEAR, MAKE AND MODEL. PLUS TAX, TITLE AND DEALER FEES. WITH APPROVED CREDIT. 740 BEACON SCORE OR ABOVE. SUBJECT TO PRIOR SALE. 0000278897 USED CAR EVE NT IN THE ARE A! SALE HOURS 100 95 90 80 70 60 50 40 30 20 10 5 Product: ENQUIRER PubDate: 07-25-2008 Zone: Late Edition: 1 Page Name: A1.0 Time: 07-24-2008 22:46 User: jreedy Color: Cyan Black Yellow Magenta W E E K E N D / L I F E E10 Earth, Wind & Fire and Frankie Beverly highlight Macy’s Fest THE CINCINNATI ENQUIRER CINCINNATI.COM 50 CENTS Gas does cost more near interstates OLYMPICS By James Pilcher and Gregory Korte jpilcher@enquirer.com, gkorte@enquirer.com With two weeks until the Opening Ceremonies, see how boxer Rau’Shee Warren and other local athletes are preparing for the Beijing Games and get the latest news. Search: Olympics Up Front Must reads inside today’s Enquirer West Chester, Brentwood heists solved, police say Two men whom police have dubbed the “interstate bank bandits” are in jail out of state and facing charges. LOCAL B1 Girls debunk myth about math They’re just as good as the boys, finds a study comparing 7 million students. HEALTH/SCIENCE A12 Change at Kroger is a real beauty A makeover in some local groceries could soon roll out to hundreds of company stores nationwide. BUSINESS A13 Some are red-hot, perfect trade bait Reds management should think about the future instead of living for the moment, columnist Paul Daugherty says. SPORTS C1 Ford hopes it can import success Bleeding cash, the automaker sees its small, fuelefficient cars sold in Europe as a possible savior. BUSINESS A13 WEATHER LN FRIDAY, JULY 25, 2008 High 88° Low 63° Partly sunny COMPLETE FORECAST: B12 INDEX Five sections, 168th year, No. 107 Advice .......... E18 Movies .... E42-44 Business . A13-15 Obituaries ...... B8 Comics ... E22-23 Sports ............ C1 Editorials ...... B10 TV ........... E20-21 Lotteries ....... B12 Worship ...... B4-5 Classified ................................... D1-10 First Run Classified .......................... B9 Copyright, 2008, The Cincinnati Enquirer Portions of today’s Enquirer were printed on recycled paper A common perception turns out to be true: Gasoline stations near the interstates really do have the highest prices in Greater Cincinnati and Northern Kentucky. An Enquirer analysis of daily sales at 716 area stations in May and June found that regular unleaded gas was almost 1½ cents a gallon higher at stations within 1 mile of an interstate exit, compared to stations more than a mile away. Compared to stations 3 to 4 miles from an interstate exit, the near-highway stations charged 2½ cents a gallon more. Prices for the analysis were obtained from Oil Price Information Service, a Wall, N.J.-based marketing information firm that tracks wholesale and retail oil and gas prices nationwide. The lone Mobil station next to the Mineola Pike exit off Interstate 275 near Analysis finds 2½-cent difference from stations farther away GAS PRICE SECRETS REVEALED D AY F I V E Coming Saturday: Where is gas higher – Ohio or Kentucky? Cincinnati/Northern Kentucky International Airport had the highest average price in the area during May and June: $4.06 a gallon. “It’s disgusting what I have to charge, and I feel guilty every day when I have to explain this to my customers,” station owner Alex Othman says. “But I refuse to lose money on gas – what can I do?” Gas makes up 80 percent of his revenue. Still, he says he only makes 1 to 2 cents for every gallon sold, after paying for the gas, plus credit card fees. Experts cite interstate economics: There’s more demand for gas along busy highways than in the middle of town. Strong demand can even overcome fierce competition that might ordinarily drive down costs at multiple stations at an exit. “We’ve seen studies that show people will drive two to three extra exits to save 1 to 2 cents a gallon. But they won’t drive 1 to 2 miles off the exit,” says Steve Harper, a Florence-based gas distributor who owns several convenience stores, including two just off exits of Interstate 71/ 75 in Northern Kentucky. The Enquirer is publishing findings of the price analysis all week. INTERSTATE EFFECT Prices are higher when stations are close to major highways. $3.92 $3.90 $3.88 $3.86 $3.84 Less than 1 to 2 2 to 3 1 mile miles miles DISTANCE FROM INTERSTATE Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Coming Sunday Housing still struggling to make a turnaround Sales, prices remain down for first half of this year lbernard@enquirer.com See HOUSING, Page A11 E.L. Hubbard for The Enquirer A special report in The Enquirer will explain how the gas market is rapidly changing, affecting prices you pay at the pump. Obama wows Germans By David Espo and David Rising The Associated Press The Enquirer/Leigh Taylor The current housing market worked out well for John and Julie Benham and their son John, 2. They recently bought a bigger house in Mason and sold their own home in Oakley in 2½ weeks. The couple had expected it would take longer to sell. Five-year glance at building permits SOUTHWEST OHIO 10,000 8,519 7,620 8,000 Online, inside NORTHERN KENTUCKY 10,000 Cincinnati.Com m Get the latest news on the housing market, see previous coverage of the 8,000 foreclosure crisis and search area fore6,000 6,000 closure listings. Search: foreclosure 5,235 On Page A13 3,798 4,000 4,000 3,145 m Stocks tumble on worse-than-ex2,361 2,002 2,000 1,542 1,345 2,000 692 pected housing news; biggest-ever decline for shares of builders. 0 0 ’04 ’05 ’06 ’07 ’08* ’04 ’05 ’06 ’07 ’08* On Page A15 *Through June m Number of vacant homes hits allSources: Home Builders Association of Greater Cincinnati and the Northern Kentucky time high of 18.6 million. Home Builders Association The Enquirer Veillette garden brings some peace Cheerleaders with Mason Youth Football Cheerleading view pictures of Marguerite Veillette during a dedication Thursday of the Veillette Memorial Garden. Marguerite was a member of the group. CINCINNATI.COM SEARCH: GAS m Find cheapest gas at CinciNavigator. m Use calculators to figure your fuel costs. m Learn tips for stretching mileage. m Join live chat at 11:30 a.m. today. m See coverage from previous days. Talk of environment, no nukes gets applause By Lisa Bernard-Kuhn The first half of 2008 delivered few signs of recovery in the region’s housing market, as home sales and prices continued to tumble and a national lending crisis fueled record foreclosures and weakened consumer confidence. In Greater Cincinnati home sales dropped 17.8 percent compared to the first half of 2007, and the median price slid 6.4 percent to $131,000, according to the Cincinnati Area Board of Realtors. Northern Kentucky home sales were off by 15 percent for the same period, and the median price remained relatively flat at $137,000, according to the Northern Kentucky Multiple Listing Service. Nationally, sales of existing homes fell 14.8 percent compared to June 2007 as the housing industry suffers its the worst slump in more than two decades. The sluggish market has taken its toll on local home builders. 3 to 4 More than miles 4 miles More online Slain mom, 4 children remembered By Janice Morse jmorse@enquirer.com MASON – Five lives taken cruelly – the four Veillette children and their mother – are now memorialized in a peaceful garden brimming with life, just feet away from a playground where the youngsters once frolicked. “May this garden help to remember the good and the happy times in their honor,” Karen Harris, president of Mason Youth Football Cheerleading, said at Thursday’s dedication of the garden at Corwin M. Nixon Park. About 500 people attended the short ceremony honoring Nadya Ferrari-Veillette and her children: Mason football cheerleader Marguerite, 8; Vincent, 4; and twins, Mia and Jacob, 2. The children died in a Jan. 11 house fire that their father, Michel, set after fatally stabbing their mother. He hanged himself in the Warren County Jail in April before the case went to trial. Because the crime – the worst anyone in upscale suburban Mason can remember – wiped out all local members of the Veillette family, “I think many people didn’t know what to do,” Harris said. “There was no one left for them to focus their caring, their feelings, on.” See VEILLETTE, Page A10 BERLIN – Cheered by an enormous international crowd, Democratic presidential contender Barack Obama on Thursday summoned Europeans and Americans together to “defeat terror and dry up the well of extremism that supports it” as surely as they conquered communism a generation ago. Obama said he was speaking as a citizen, not as a president, but the evening was awash in politics as the firstterm U.S. senator sought to burnish his international credentials. His remarks before a crowd estimated at 200,000 inevitably invited comparison to historic speeches in m McCain camthe same city by Presidents paigns in ColumKennedy and Reagan. bus, speaks at Obama borrowed rhetoric cancer forum. A2 from his own appeals to campaign audiences this year in m Americans the likes of Berlin, N.H., as he praise Obama – spoke in one of the great cit- but some skeptical, too. A3 ies of Europe. “People of Berlin, people of the world, this is our moment. This is our time,” he declared. “The walls between old allies on either side of the Atlantic cannot stand,” Obama said, speaking not far from where the Berlin Wall once divided the city. “The walls between the countries with the most and those with the least cannot stand. The walls between races and tribes, natives and immigrants, Christians and Muslims and Jews cannot stand.” Obama’s speech was the centerpiece of a fastpaced tour through Europe designed to reassure skeptical voters in the U.S. about his ability to lead the country and take a cross-Atlantic alliance in a new direction after President Bush. Republicans chafed at the media attention Obama’s campaign-season trip has drawn. Presidential rival John McCain went to a German restaurant in swing-state Ohio, and said he’d like to deliver a speech in Germany – but as president, not as a candidate. Obama met earlier in the day with German Chancellor Angela Merkel for a discussion that ranged across the wars in Iraq and Afghanistan, climate change, energy issues and more. For his speech, Obama drew loud applause when he talked of a world without nuclear weapons and when he called for steps to counter climate change. Obama mentioned Iraq, a war he has opposed from the start, only in passing. In discussing Afghanistan, he said, “no one welcomes war. ... But my country and yours have a stake in seeing that NATO’s first mission beyond Europe’s borders is a success.” Inside F R E E ! !E! AD UPGR A $900 VA L U E Hybrid Dual Fuel System GO GREEN! Save 35%-50% On Utility Bills Free Hybrid Dual Fuel Upgrade with purchase of our BEST AC system. F FREE REE E ESTIMATES S T I M AT E S O ONLINE! NLINE! TheComfortZone.com TheComfortZone.com Byy Phone B P h o n e 942-ZONE 9 4 2 - Z O N E or o r In-StoreI n - S t o r e - Tri-County, Tr i - C o u n t y , Montgomery M o n t g o m e r y & Beechmont Beechmont Approved credit thru GECAF. Interest accrues at 24.99% if not paid in full by promotion’s end. ! Service W E N By Appointment 0000272619 AIR AIR CONDITIONERS REPLACED CONDITIONERS & HEAT HEAT PUMPS PUMPS R EPLACED 100 95 90 80 70 60 50 40 30 20 10 5 Product: ENQUIRER PubDate: 07-26-2008 Zone: Late Edition: 1 Page Name: A1.0 Time: 07-25-2008 22:28 User: jmeo1 Color: Cyan Black Yellow Magenta S P O R T S C1 Rockies pound Reds 7-2 in series opener THE CINCINNATI ENQUIRER CINCINNATI.COM N.Ky. drivers pay more at the pump Lower taxes not enough to offset cost of summer gas formula Cincinnati.Com By James Pilcher and Gregory Korte jpilcher@enquirer.com and gkorte@enquirer.com Macy’s Music Festival opened Friday at Paul Brown Stadium with artists such as Chrisette Michele (above). Click on our photo galleries of fans and performers, see a review or offer your own at Cincinnati.Com. Search: macys Dayton Dragons cool things down The Single-A baseball team hit the field Friday after Thursday’s brawl with the Peoria Chiefs. SPORTS C1 Where nature meets nurture A Liberty Township couple have transformed their backyard into a place to enjoy the wildlife. LIFE/HOME STYLE E1 Also… Orders for U.S. durable goods rose in June, and sales of new homes were higher than forecast. BUSINESS B1 Federal regulators approved the merger of the nation’s only two satelliteradio operators on Friday. BUSINESS B2 A Qantas jumbo jet landed safely after a hole was ripped into the fuselage. WORLD A8 High 90° Low 65° A thunderstorm COMPLETE FORECAST: D6 INDEX Six sections, 168th year, No. 108 Advice ............ E2 Movies ........... E9 Business ........ B1 Obituaries ...... D2 Comics ........... E8 Region ........... D3 Editorials ........ D4 Sports ............ C1 Lotteries ......... D6 TV .................. E2 Classified ................................... F1-26 First Run Classified .......................... C8 Copyright, 2008, The Cincinnati Enquirer Portions of today’s Enquirer were printed on recycled paper m Find cheaper gas at CinciNavigator. m Q&A and Friday’s gas chat transcript. m Tips for stretching your mileage. m Tell us: What do you want to know about gas pricing? Coming Sunday: Gas prices, neighborhood by neighborhood. from 16 to 21 cents a gallon higher in Kentucky. Prices were obtained from Wall, N.J.-based Oil Price Information Service, a firm that tracks wholesale and retail fuel prices nationwide. choose different blends of gasoline to reduce pollution. But demand for different blends is straining an already-stressed refining industry. Any glitch in the system creates wildly fluctuating price spikes. Last year, Ohio switched to a blend that evaporates more slowly than Kentucky’s blend, which burns more cleanly in an engine. “So Kentucky drivers are going across the river to buy cheaper gas that doesn’t burn as cleanly, and then they come back over to Kentucky, which kind of defeats the purpose,” says Linda Casey, spokeswoman for Marathon Oil, which owns and operates the region’s Speedway retail stores. Hamilton Co. Fair a relic of the past? Must reads inside today’s Enquirer An archaeological dig at the Fort Ancient State Memorial in Warren County was getting down to the nitty-gritty Friday. LOCAL D1 The Enquirer has published findings of the price analysis every day this week. Sunday, a special report will explain how the gas market is rapidly changing, affecting prices you pay at the pump. Currently, Kentucky drivers pay a state gas tax of 22.5 cents a gallon. Ohio drivers pay 28 cents a gallon. But Northern Kentucky counties in the summer also require the sale of cleaner-burning reformulated gas, which is expensive to produce. No nearby refineries make it, so it must be piped in or trucked from places such as Chicago. The difference in price from state to state reflects a broader national issue. States and cities are free to Search: gas State gasoline taxes are 5½ cents a gallon less in Kentucky than Ohio – but that doesn’t mean gas is cheaper in the Bluegrass State. To the contrary, Northern Kentucky drivers paid as much or more for regular unleaded fuel as Ohio drivers in May and June, according to an Enquirer analysis of daily sales at 716 area stations. Prices averaged $3.91 a gallon in Kentucky and $3.90 in Ohio during the two months. In recent days, the disparity has grown wider: Since July 15, regular unleaded has ranged Up Front Archaeology Day; can you dig it? 50 CENTS Declining attendance threatens long tradition By Jessica Brown jlbrown@enquirer.com The Hamilton County Fair, preparing for its 153rd edition this year, isn’t faring so well these days. The annual event, which begins Wednesday, was once a packed-house affair that drew about 30,000 people. But much like the aging buildings that dot its 30-acre fairgrounds in Carthage, the event has lost much of its luster. Attendance dropped 40 percent between 2003 and 2007, hitting an Cincinnati.Com all-time low of 12,458 last year. Other local fairs in Greater Cin- m Does Hamilton cinnati are doing well. But a little County really need a farther north, Franklin County fair anymore? (Columbus) also experienced a News.Cincinbig drop in attendance. nati.Com/forums Hamilton County Fair managm View photo gallerers blame last summer’s heat wave for part of the 2007 attendance ies from area county drop, but they don’t deny that their fairs. Search: photos fair needs help. Several things might be contributing to the fair’s weak pulse. m Outdated buildings. The fair’s main source of revenue is renting out buildings in the offseason, but it is difficult to rent out buildings in poor condition. m Lack of corporate or government support. The county gives $3,300, which is the minimum the state allows. Hamilton County has more people than surrounding counties, but its fair drew fewer people in 2007. COUNTY POPULATION ATTENDANCE PERCENT* almost 70,000 36 357,888 88,000 24.6 Warren 204,390 N/A N/A Hamilton 842,369 12,458 1.5 Boone 112,459 30,000 26.7 Kenton 156,675 est. 25,000 16 $4.3 $4.2 $4.1 $4.0 $3.9 $3.8 $3.7 $3.6 $3.5 $3.4 $3.3 Avg. SW Ohio Avg. Northern Kentucky July 10: $4.24 July 10: $4.02 MAY 2008 JUNE 2008 JULY Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Housing rescue closer WASHINGTON – The Senate cleared the last hurdle Friday to passing a housing rescue aimed at sparing hundreds of thousands of homeowners from foreclosure and bolstering mortgage giants Fannie Mae and Freddie Mac. The 80-13 test vote showed broad support for the electionyear package and put it on track Read past artito pass the Senate by today. The cles about the White House says President housing crisis Bush will sign it, having earlier at Cincinnati. dropped a threat to veto it over Com. $3.9 billion in neighborhood Search: grants. foreclose The bill – regarded as the most significant housing legislation in a generation – is designed to help an estimated 400,000 homeowners escape foreclosure by letting them refinance into more affordable loans backed by the Federal Housing Administration. It was set to clear Congress as a private company reported that the number of households facing the foreclosure process more than doubled in the second quarter of 2008 compared with a year ago. Irvine, Calif.-based RealtyTrac, Inc., said 739,714 homes received at least one foreclosure-related notice during the quarter, or one in every 171 U.S. households. The plan gives the Treasury Department power to spend unlimited amounts to prop up Fannie and Freddie, should they need it, to calm investor fears about their financial stability at a time of rising foreclosures and falling home values. Many Republicans have vehemently opposed the rescue, which they call a bailout of irresponsible homeowners and unscrupulous lenders. Online How the fairs compare 190,000 CHEAPER GAS: OHIO OR KENTUCKY? The Associated Press See FAIR, Page A9 Butler D AY S I X Final Senate vote is expected today Online Clermont GAS PRICE SECRETS REVEALED The Enquirer/Tony Jones Annie Gallick, 11, of Wyoming, with her horse Blue, is a 4-H member who’s preparing for the Hamilton County Fair, which begins Wednes*County population that went to the fair Source: Census data, Enquirer research day. Attendance at the fair has been in a free fall in recent years. McCain gains traction after long week Salmonella source Avoid jalapeños from Mexico Labors busily while Obama in spotlight The U.S. Food and Drug Administration told consumers Friday to avoid eating raw Mexican-grown jalapeños and the serrano peppers often confused with them. The peppers are the most likely source of the salmonella breakout that has sickened almost 1,300 people, the government said. Monday, the FDA said it had found the salmonella strain on a Mexican-grown jalapeño in a Texas warehouse. NATION A5 By Tom Raum The Associated Press DENVER – Republican presidential candidate John McCain – ridiculing Barack Obama for “the audacity of hopelessness” in his policies on Iraq – said Friday that the entire Middle East could have plunged into war had U.S. troops been withdrawn as his rival advocated. Speaking to an audience of Hispanic military veterans, McCain stepped up his criticism of Obama 2008 Nissan SENTRA 2.0 Model #42718 N6868 N6869 while the Illinois senator continued his headline-grabbing tour of the Middle East and Europe. The Arizona Republican contended that Obama’s policies – he opposed sending more troops to Iraq in the “surge” that McCain supported – would have led to defeat there and in Afghanistan. See MCCAIN, Page A11 2008 Nissan ALTIMA 2.5 S Model #05718 N6670 N6739 MSRP $17,080 MSRP $21,615 FALHABER DISCOUNT.........................$692 FALHABER DISCOUNT......................$1,250 NISSAN REBATE................................$1,500 NISSAN REBATE................................$1,250 14,888 SALE $ $ PRICE SALE PRICE Inside, online The Associated Press/Carolyn Kaster Republican presidential candidate John McCain meets Friday with the Dalai Lama in Aspen, Colo. Page A2 m Obama continues trip across Europe. m Israeli paper says it has Obama’s note. Cincinnati.Com m Get the latest on the presidential campaign. Search: election FALHABER NISSAN 8680 Colerain Avenue 513-385-1400 19,115 www.falhabernissan.com $ $ 0000275516 MUSIC FEST WEATHER LN SATURDAY, JULY 26, 2008 100 95 90 80 70 60 50 40 30 20 10 5 Product: ENQUIRER PubDate: 07-27-2008 Zone: Late Edition: 1 Page Name: A1.0 Time: 07-26-2008 22:01 User: bmullins Color: Cyan Black Yellow Magenta MORE COVERAGE IN SPORTS TRAINING CAMP AND TENNIS BENGALS: MARVIN LEWIS SAYS IT’S TIME TO PERFORM ATP: MASON TOURNEY COULD BE NADAL’S CROWNING COUPONS WORTH $114 INSIDE TODAY GO ONLINE: FIND PHOTOS FROM THE REDS GAME AND FAN FACES. SEARCH: REDS THE CINCINNATI ENQUIRER CINCINNATI.COM LN SUNDAY, JULY 27, 2008 Up Front Must reads inside today’s Enquirer Indian city hit by series of bombs REVEALED GAS PRICE SECRETS GAS WARS Pops maestro triumphantly returns to China Erich Kunzel will lead the Cincinnati Pops, the only American orchestra invited, in two performances at the Olympics in Beijing. A&E D1 Attack at market kills at least 29 Columbus family adopts local teen By R.K. Misra The Associated Press The Steinhausers reflect a Hamilton County agency’s new emphasis on finding homes for foster children. LOCAL B1 Hoosier state’s summer highlights Indiana’s summer is taking off with something for every kind of traveler. TRAVEL F1 Snooty Fox makes saving stylish The consignment chain’s owner refurbished an old idea for high profits. BUSINESS G1 Candidates’ plans for the war in Iraq Read columns that Barack Obama and John McCain recently submitted to the New York Times. FORUM I1 Enquirer photos Ashley Deel (in photo at left) changes prices at the Speedway on Hunt Road in Blue Ash with the assistance of station manager Kenneth McNeill. Stations on Mason-Montgomery Road (top) were selling for $3.85 Wednesday. Renee Klein of Florence pumps gas at a Chevron on U.S. 42 in Florence. Prices were a little lower at the Kroger on Mason-Montgomery (above right). Also… A Wyoming couple renovated their 1890 house to evoke two distinct styles. HOMESCAPE E1 “Mad Men,” AMC’s drama about the ’60s, returns for a second season of lies, changes. TV WEEK 2008 Summer Olympics preview: Shawn Johnson is the gymnast to watch in Beijing, says 1996 goldmedalist Shannon Miller. Plus, a pullout day-by-day TV guide. USA WEEKEND WEATHER High 88° Low 66° Partly sunny COMPLETE FORECAST: B8 INDEX 12 sections, 168th year, No. 109 A&E ............... D1 Movies ........... D2 Business ........ G1 Obituaries ...... B6 Forum ............. I1 Puzzles ........... D7 Life ............. F6-7 Sports ............ C1 Lotteries ......... B8 TV .......... TV Week Classified .................. E1-12, H1-6, J1-8 First Run Classified ........................ A20 Copyright, 2008, The Cincinnati Enquirer Portions of today’s Enquirer were printed on recycled paper $1.50 How the fight over pennies affects prices you pay By James Pilcher and Gregory Korte jpilcher@enquirer.com and gkorte@enquirer.com O n May 7, the average price of regular unleaded gas shot up 16 cents overnight in Greater Cincinnati and Northern Kentucky – then spiked another 16 cents six days later. On May 16, an Ameristop in Franklin sold regular unleaded gas for $4.46 a gallon while another Ameristop, eight miles north, sold the same Shell fuel for $3.96. And on June 29, prices in Northern Kentucky hit $4.16 a gallon for regular unleaded gas, compared to $4.02 in Cincinnati. Up one morning, down the next. Same brand, different prices. Why? As gas hovers around $4 a gallon, motorists are paying prices set by a complicated alchemy of location, competition and timing in one of the most competitive markets in the nation. Part street fight and part marketing science, gas pricing has become as sophisticated as the latest statistical analysis and as simple as one station owner looking across the street to see what his rival is doing. An Enquirer analysis of daily gas prices at 716 area stations in May and June, and interviews with dozens of dealers, consumers and experts, finds that competition is still the No. 1 factor influencing how prices are set. But the analysis also underscores the impact of new trends on local pricing at the pump: See GAS, Page A10 Inside, online Pages A10-11 m Six secrets you need to know m Prices by neighborhood m Highest, lowest prices Cincinnati.Com, Search: gas m Find the cheapest gas in your area at CinciNavigator m Use calculators to figure costs m Join the discussion m Video: You asked the questions AHMADABAD, India – Bombs exploded Saturday near a busy market and a hospital in a western Indian city, killing 29 people and injuring 88 a day after deadly blasts struck the southern technology hub of Bangalore. There was no immediate claim of responsibility and it was not clear whether the bombings were connected to those a day earlier. But suspicion quickly fell on Muslim militants blamed for previous attacks, including the 2006 bombings that killed nearly 200 in Mumbai, also known as Bombay. At least 16 bombs went off Saturday evening in several crowded neighborhoods of Ahmadabad – a historic city that in 2002 was the scene of some of the worst rioting between India’s Hindu majority and its Muslim minority. The bombs went off in two separate spates. The first, near a busy market, left some of the dead sprawled beside stands piled high with fruit, next to twisted bicycles and in public squares. The second went off near a hospital. Narenda Modi, the chief minister of Gujarat state, where Ahmadabad is located, called the blasts “a crime against humanity.” He said the bombings appeared to have been masterminded by a group or groups who “are using a similar modus operandi all over the country.” The attacks are believed to be an attempt to provoke violence between India’s Hindu majority and the Muslim minority. Those fears were amplified by the history of Ahmadabad’s 2002 riots between Muslims and Hindus. That violence killed about 1,000 people, most of them Muslims. It was triggered by a fire that killed 60 passengers on a train packed with Hindu pilgrims. Hindu extremists blamed the deaths on Muslims and rampaged through Muslim neighborhoods, although the cause of the blaze remains unclear. On Friday, seven synchronized small bombs killed two people and injured at least five in Bangalore. Battle among beer baron’s heirs brews up trouble for law firm By Kimball Perry Online: Read Cundall’s classmates and buddies at Walnut Hills High. As adults, they used that friendship and reliance on each other to make their names and build their fortunes. Koons became an executive with Cincinnati’s Burger Beer brewery and the majority shareholder in its succes- sor company, which sold four soft drink bottling businesses in 2005 for $340 million. Ward became a prominent Cincinnati lawyer, a former president of the Cincinnati Bar Association who started his own firm in 1958. He was Koons’ personal and business lawyer for more than four dec- kperry@enquirer.com lawsuit and other documents John “Bud” Koons III and at Cincinnati.Com. Richard “Dick” Ward were Search: Koons ades, work for which he earned millions of dollars, court documents note. Now, Koons’ estate and Ward, 85, are prime players in a $300 million legal drama unfolding in Hamilton County and Florida involving three bitter lawsuits. They deal with broken confidences established over generations and accusations concerning huge dollars and even bigger egos. The numbers involved are eye-popping – followed by six, seven and eight zeroes – with the centerpiece transaction exceeding a third of a billion dollars. The accusations include a lawyer retaliating against a client for being removed from a consulting job that paid him $250,000 per year for no more than 10 hours work per month. They come from an estate that would pass to a Florida politician and the widow of rock icon Jerry Garcia. See BATTLE, Page A6 The Enquirer/Joseph Fuqua II Holiday time at Macy’s fest J. Holiday performs Saturday during the Macy’s Music Festival at Paul Brown Stadium. At Cincinnati.Com: More photos and a review from Saturday night’s show. Search: photos Inside, B2: A review of Friday performances. HURRY OFFER ENDS JULY 31 Kroger helps you get more for your money with... With the purchase of $300, $600 or $1200 worth of Kroger Gift Cards! Gift Card Here’s how it works: Now through July 31st buy $300, $600 or $1,200 worth of Kroger Gift Cards, and get an extra 10% added to the value–Free! Offer applies to in-store purchases only of new Kroger gift cards, and does not include re-loads on existing gift cards. This offer cannot be combined with any other discount or offer. Limit one offer per household, with Kroger Plus Card. Bonus amounts cannot be redeemed for alcohol, tobacco, pharmaceuticals or lottery tickets. 100 95 90 80 70 60 50 40 30 20 10 5 Product: ENQUIRER PubDate: 07-27-2008 Zone: Late Edition: 1 Page Name: A1.0 Time: 07-26-2008 22:01 User: bmullins Color: Cyan Black Yellow Magenta MORE COVERAGE IN SPORTS TRAINING CAMP AND TENNIS BENGALS: MARVIN LEWIS SAYS IT’S TIME TO PERFORM ATP: MASON TOURNEY COULD BE NADAL’S CROWNING COUPONS WORTH $114 INSIDE TODAY GO ONLINE: FIND PHOTOS FROM THE REDS GAME AND FAN FACES. SEARCH: REDS THE CINCINNATI ENQUIRER CINCINNATI.COM LN SUNDAY, JULY 27, 2008 Up Front Must reads inside today’s Enquirer Indian city hit by series of bombs REVEALED GAS PRICE SECRETS GAS WARS Pops maestro triumphantly returns to China Erich Kunzel will lead the Cincinnati Pops, the only American orchestra invited, in two performances at the Olympics in Beijing. A&E D1 Attack at market kills at least 29 Columbus family adopts local teen By R.K. Misra The Associated Press The Steinhausers reflect a Hamilton County agency’s new emphasis on finding homes for foster children. LOCAL B1 Hoosier state’s summer highlights Indiana’s summer is taking off with something for every kind of traveler. TRAVEL F1 Snooty Fox makes saving stylish The consignment chain’s owner refurbished an old idea for high profits. BUSINESS G1 Candidates’ plans for the war in Iraq Read columns that Barack Obama and John McCain recently submitted to the New York Times. FORUM I1 Enquirer photos Ashley Deel (in photo at left) changes prices at the Speedway on Hunt Road in Blue Ash with the assistance of station manager Kenneth McNeill. Stations on Mason-Montgomery Road (top) were selling for $3.85 Wednesday. Renee Klein of Florence pumps gas at a Chevron on U.S. 42 in Florence. Prices were a little lower at the Kroger on Mason-Montgomery (above right). Also… A Wyoming couple renovated their 1890 house to evoke two distinct styles. HOMESCAPE E1 “Mad Men,” AMC’s drama about the ’60s, returns for a second season of lies, changes. TV WEEK 2008 Summer Olympics preview: Shawn Johnson is the gymnast to watch in Beijing, says 1996 goldmedalist Shannon Miller. Plus, a pullout day-by-day TV guide. USA WEEKEND WEATHER High 88° Low 66° Partly sunny COMPLETE FORECAST: B8 INDEX 12 sections, 168th year, No. 109 A&E ............... D1 Movies ........... D2 Business ........ G1 Obituaries ...... B6 Forum ............. I1 Puzzles ........... D7 Life ............. F6-7 Sports ............ C1 Lotteries ......... B8 TV .......... TV Week Classified .................. E1-12, H1-6, J1-8 First Run Classified ........................ A20 Copyright, 2008, The Cincinnati Enquirer Portions of today’s Enquirer were printed on recycled paper $1.50 How the fight over pennies affects prices you pay By James Pilcher and Gregory Korte jpilcher@enquirer.com and gkorte@enquirer.com O n May 7, the average price of regular unleaded gas shot up 16 cents overnight in Greater Cincinnati and Northern Kentucky – then spiked another 16 cents six days later. On May 16, an Ameristop in Franklin sold regular unleaded gas for $4.46 a gallon while another Ameristop, eight miles north, sold the same Shell fuel for $3.96. And on June 29, prices in Northern Kentucky hit $4.16 a gallon for regular unleaded gas, compared to $4.02 in Cincinnati. Up one morning, down the next. Same brand, different prices. Why? As gas hovers around $4 a gallon, motorists are paying prices set by a complicated alchemy of location, competition and timing in one of the most competitive markets in the nation. Part street fight and part marketing science, gas pricing has become as sophisticated as the latest statistical analysis and as simple as one station owner looking across the street to see what his rival is doing. An Enquirer analysis of daily gas prices at 716 area stations in May and June, and interviews with dozens of dealers, consumers and experts, finds that competition is still the No. 1 factor influencing how prices are set. But the analysis also underscores the impact of new trends on local pricing at the pump: See GAS, Page A10 Inside, online Pages A10-11 m Six secrets you need to know m Prices by neighborhood m Highest, lowest prices Cincinnati.Com, Search: gas m Find the cheapest gas in your area at CinciNavigator m Use calculators to figure costs m Join the discussion m Video: You asked the questions AHMADABAD, India – Bombs exploded Saturday near a busy market and a hospital in a western Indian city, killing 29 people and injuring 88 a day after deadly blasts struck the southern technology hub of Bangalore. There was no immediate claim of responsibility and it was not clear whether the bombings were connected to those a day earlier. But suspicion quickly fell on Muslim militants blamed for previous attacks, including the 2006 bombings that killed nearly 200 in Mumbai, also known as Bombay. At least 16 bombs went off Saturday evening in several crowded neighborhoods of Ahmadabad – a historic city that in 2002 was the scene of some of the worst rioting between India’s Hindu majority and its Muslim minority. The bombs went off in two separate spates. The first, near a busy market, left some of the dead sprawled beside stands piled high with fruit, next to twisted bicycles and in public squares. The second went off near a hospital. Narenda Modi, the chief minister of Gujarat state, where Ahmadabad is located, called the blasts “a crime against humanity.” He said the bombings appeared to have been masterminded by a group or groups who “are using a similar modus operandi all over the country.” The attacks are believed to be an attempt to provoke violence between India’s Hindu majority and the Muslim minority. Those fears were amplified by the history of Ahmadabad’s 2002 riots between Muslims and Hindus. That violence killed about 1,000 people, most of them Muslims. It was triggered by a fire that killed 60 passengers on a train packed with Hindu pilgrims. Hindu extremists blamed the deaths on Muslims and rampaged through Muslim neighborhoods, although the cause of the blaze remains unclear. On Friday, seven synchronized small bombs killed two people and injured at least five in Bangalore. Battle among beer baron’s heirs brews up trouble for law firm By Kimball Perry Online: Read Cundall’s classmates and buddies at Walnut Hills High. As adults, they used that friendship and reliance on each other to make their names and build their fortunes. Koons became an executive with Cincinnati’s Burger Beer brewery and the majority shareholder in its succes- sor company, which sold four soft drink bottling businesses in 2005 for $340 million. Ward became a prominent Cincinnati lawyer, a former president of the Cincinnati Bar Association who started his own firm in 1958. He was Koons’ personal and business lawyer for more than four dec- kperry@enquirer.com lawsuit and other documents John “Bud” Koons III and at Cincinnati.Com. Richard “Dick” Ward were Search: Koons ades, work for which he earned millions of dollars, court documents note. Now, Koons’ estate and Ward, 85, are prime players in a $300 million legal drama unfolding in Hamilton County and Florida involving three bitter lawsuits. They deal with broken confidences established over generations and accusations concerning huge dollars and even bigger egos. The numbers involved are eye-popping – followed by six, seven and eight zeroes – with the centerpiece transaction exceeding a third of a billion dollars. The accusations include a lawyer retaliating against a client for being removed from a consulting job that paid him $250,000 per year for no more than 10 hours work per month. They come from an estate that would pass to a Florida politician and the widow of rock icon Jerry Garcia. See BATTLE, Page A6 The Enquirer/Joseph Fuqua II Holiday time at Macy’s fest J. Holiday performs Saturday during the Macy’s Music Festival at Paul Brown Stadium. At Cincinnati.Com: More photos and a review from Saturday night’s show. Search: photos Inside, B2: A review of Friday performances. HURRY OFFER ENDS JULY 31 Kroger helps you get more for your money with... With the purchase of $300, $600 or $1200 worth of Kroger Gift Cards! Gift Card Here’s how it works: Now through July 31st buy $300, $600 or $1,200 worth of Kroger Gift Cards, and get an extra 10% added to the value–Free! Offer applies to in-store purchases only of new Kroger gift cards, and does not include re-loads on existing gift cards. This offer cannot be combined with any other discount or offer. Limit one offer per household, with Kroger Plus Card. Bonus amounts cannot be redeemed for alcohol, tobacco, pharmaceuticals or lottery tickets. 100 95 90 80 70 60 50 40 30 20 10 5 Product: ENQUIRER PubDate: 07-27-2008 Zone: Late Edition: 1 Page Name: A10.0 Time: 07-26-2008 20:58 User: bmullins Color: Cyan Black Yellow Magenta GAS PRICE SECRETS A10 SUNDAY, JULY 27, 2008 How neighborhoods compare How much you pay for gas often depends on where you live. On average, motorists pay more in inner-city neighborhoods and rural areas where fewer gas stations compete for your business. Motorists fueling up in Indian Hill and Verona paid some of the highest prices in May and June, while consumers in Union and Avondale paid some of the lowest. Average price by ZIP code May-June 2008 $3.81 - $3.87 $3.88 - $3.93 $3.94 - $4.00 $4.01 - $4.06 No stations 75 Butler Co. 74 Dearborn Co. Warren Co. Hamilton Co. Clermont Co. 275 275 Kenton Co. Boone Co. Southwest Ohio 45002 45005 45011 45013 45014 45015 45026 45030 45032 45036 45039 45040 45042 45044 45050 45053 45056 45065 45066 45067 45068 45069 45102 45103 45106 45120 45122 45140 45150 45152 45157 45160 45174 45176 45202 45203 45204 45205 45206 45207 45208 45209 45211 45212 45213 45214 45215 45216 45217 45219 45220 45223 45224 45225 45226 45227 45229 45230 Cleves Franklin Hamilton Hamilton Fairfield Hamilton Hamilton Harrison Harveysburg Lebanon Maineville Mason Middletown Middletown Monroe Okeana Oxford South Lebanon Springboro Trenton Waynesville West Chester Amelia Batavia Bethel Felicity Goshen Loveland Milford Morrow New Richmond Owensville Terrace Park Williamsburg Downtown West End Lower Price Hill Price Hill Walnut Hills Evanston Hyde Park Oakley Westwood Norwood Kennedy Heights Fairmount Wyoming Carthage Saint Bernard Corryville Clifton Northside College Hill Camp Washington East End Fairfax Avondale Mount Washington Campbell Co. 75 71 ZIP Code Includes* 71 Average Number Price of stations ZIP Code Includes* $3.94 $3.87 $3.86 $3.90 $3.88 $3.88 $3.88 $3.94 $3.96 $3.92 $3.89 $3.89 $3.90 $3.88 $3.90 $3.92 $3.89 $3.88 $3.87 $3.88 $3.95 $3.91 $3.89 $3.91 $3.96 $4.03 $3.90 $3.89 $3.88 $3.92 $3.94 $3.91 $3.95 $3.95 $3.94 $3.94 $3.90 $3.92 $3.92 $3.92 $3.93 $3.90 $3.91 $3.89 $3.91 $3.91 $3.90 $3.90 $3.90 $3.93 $4.03 $3.92 $3.91 $3.94 $3.92 $3.92 $3.85 $3.93 5 18 16 13 23 3 1 12 1 13 4 17 8 15 4 1 9 1 7 4 4 19 11 12 3 2 2 19 18 2 2 2 3 3 1 3 2 4 3 2 4 6 10 10 6 3 8 7 4 2 1 5 5 5 4 7 5 8 45231 Mount Healthy 45232 Saint Bernard 45233 Delhi Township 45236 Blue Ash 45237 Bond Hill 45238 Covedale 45239 White Oak 45240 Forest Park 45241 Sharonville 45242 Montgomery 45243 Indian Hill 45244 Mariemont 45245 Newtown 45246 Glendale 45247 Colerain Township 45248 Westwood 45249 Symmes Township 45251 Colerain Township 45255 Anderson Township Southwest Ohio total Northern Kentucky ZIP Code Includes* 41001 Alexandria 41005 Burlington 41007 California 41011 Covington 41015 Latonia 41016 Covington 41017 Fort Mitchell 41018 Erlanger 41042 Florence 41048 Hebron 41051 Independence 41059 Melbourne 41071 Newport 41073 Bellevue 41074 Dayton 41075 Fort Thomas 41076 Newport 41091 Union 41092 Verona 41094 Walton Northern Kentucky total Southeastern Indiana ZIP Code Includes* 47001 Aurora 47018 Dillsboro 47022 Guilford 47025 Lawrenceburg 47032 Moores Hill 47060 West Harrison Southeastern Indiana total Regional total Average Number Price of stations $3.90 $3.91 $3.95 $3.92 $3.91 $3.91 $3.92 $3.87 $3.91 $3.92 $4.05 $3.91 $3.90 $3.89 $3.92 $3.91 $3.89 $3.94 $3.91 $3.90 20 1 4 11 5 14 8 9 15 11 2 15 9 10 8 7 7 6 7 561 Average Number Price of stations $3.90 $3.95 $3.92 $3.92 $3.90 $3.96 $3.94 $3.93 $3.91 $3.92 $3.92 $3.91 $3.91 $3.90 $3.89 $3.96 $3.89 $3.81 $4.06 $3.92 $3.91 10 2 2 12 6 1 13 12 27 5 4 1 4 3 1 3 11 3 2 8 130 Average Number Price of stations $3.96 $3.97 $4.01 $3.95 $3.97 $3.95 $3.96 $3.91 7 2 1 11 1 3 25 716 *ZIP codes often contain multiple neighborhoods, and neighborhoods often cross several ZIP codes. These representative neighborhoods are listed simply to help readers locate the ZIP code. Source: Enquirer analysis of data from the Oil Price Information Service. Analysis based on sales of regular, unleaded gas at 716 stations in SW Ohio, N. Kentucky and SE Indiana. The Enquirer/Gregory Korte, Randy Mazzola About this report: 716 stations, 61 days T o unlock the secrets of retail gas prices, The Enquirer analyzed a database of daily gas prices reported by 716 stations in Greater Cincinnati, Northern Kentucky and Southeastern Indiana. Data were reported over 61 days in May and June – a time period that saw a 50-cent climb in average gas prices. In all, 31,439 price points were analyzed. The data came courtesy of the Oil Price Information Service, a Wall, N.J., provider of pricing data. It’s the same source used by many gasoline retailers to monitor the competition and set their own prices. All prices in this report are for a gallon of regular unleaded gas. Not all participating stations reported prices for all days; the typical station reported data for 44 of the 61 days. In some cases, The Enquirer omitted stations from the analysis when the small number of reporting dates would have skewed their average cost. Other sources of data included interstate ramp maps supplied by the Ohio-Kentucky-Indiana Regional Council of Governments and ZIP-code areas from the U.S. Census Bureau. Data supplied by the Oil Price Information Service differs from numbers provided by Gasbuddy.com, which supplies retail gas prices to many media outlets including The Enquirer’s Web site, Cincinnati.Com. Gasbuddy data come from prices reported by motorists, who share prices they see with others in an online forum. It’s free (as opposed to the subscription-based OPIS data) and available in real time. The data used for this report, on the other hand, are more comprehensive – about 80 percent of the region’s stations participate. It’s also more reliable because prices come directly from creditcard charges for the actual cost paid. — Gregory Korte and James Pilcher REVEALED THE ENQUIRER Gas: Stations in price dogfight From Page A1 m Speedway has emerged as the region’s market leader. It routinely uses its competitive power to set pricing, and other stations follow. m Increasing numbers of fueling stations at Kroger, Costco, Sam’s Club and other large operators are making gas sales more competitive, with lower-than-average prices. m Most oil companies are exiting the difficult retail gas business. That’s increased the number of smaller gas station owners who can influence street pricing up or down. The cost of crude oil, refining expenses, taxes and marketing all are driving the price of gas. But most of the profits have long been pocketed by the oil companies and refineries that pulled crude out of the ground, shipped it and made it into gas. What’s left of your gas dollar is open to cutthroat competition. “Once the product leaves the refinery gate, it’s every man for himself,” says James Patneau Jr., chairman of the Ohio Petroleum Marketers and Convenience Store Association, who runs four stations and delivers gas to 30 or so others around Cleveland. Competition rules Greater Cincinnati and Northern Kentucky is among the most competitive regions in the country, noted for relatively small differences between wholesale and retail gas prices, according to the Oil Price Information Service, a Wall, N.J., firm that tracks national oil and gas pricing. The company supplied the daily prices for regular unleaded gas used in The Enquirer’s analysis. Greater Cincinnati also has a relatively high concentration of gas stations competing, according to the U.S. Census Bureau. Cincinnati’s 92 gas stations per 100,000 households compares to 87 for Indianapolis, 86 for Kansas City, Mo., and 62 for Sacramento, Calif. – all cities of similar or slightly larger size. Add relative newcomer Kroger and its strategy of undercutting street pricing through its loyalty card program, and competition has become even more intense. “This is a penny business – we’re all just fighting over pennies,” says Stephen Hightower, president and chief executive officer of Franklin-based Hightowers Petroleum Co. His company supplies gas to hundreds of U.S. stations and is trying to buy more than 100 BP stations. “Unfortunately, it’s that marquee sign across the street that determines whether we’ll make a penny or five or lose two to three,” he says. Daily, station managers and owners decide whether to match price increases or decreases by competitors across the street, or to raise prices on their own – and maybe make more profit but lose all-important volume. The decisions can mean the difference between eking out a meager profit and losing money. Take this typical scenario: A station owner buys gas at $3.55 a gallon and sells it for $3.86, current wholesale and retail averages in Southwest Ohio. The dealer nets a gross profit of 31 cents a gallon, or $2,480 a week if he sells 8,000 gallons – a very busy store. But credit card companies are charging gas retailers 3 percent or more on total sales, meaning that $926 or more is knocked off the owner’s profit since the vast majority of purchases are made with plastic. That leaves about $1,500 before covering costs such as insurance, payroll, the mortgage and possible drive-off thefts. Replacing hose nozzles – a station might lose two a month to absent-minded drivers – will cost $600 each. Prices may be slightly different in Kentucky, but the effect is still the same: Station owners say they make more profit off a $1.49 cup of coffee than a full tank of gas. “The store will not pay for your overhead,” says Robert Lusby, who owns a Sunoco station on Buttermilk Pike just off Interstate The Enquirer/Jeff Swinger Ebony Johnson (left), 14, and her mother, Anissa Johnson of Westwood, pump gas into their van Friday at the Western Hills Kroger. 71/75 in Crescent Springs. “You can’t sell enough Twinkies and soda to make it – I lost $80,000 last year.” When asked why he’s still in the business, Lusby shoots back: “Want to buy it?” The cents are adding up for consumers as well: Americans spent nearly $100 million more on gas in June than in May, and $1 billion more on gas in June than during the same month five years ago. For consumers used to a decade of cheap energy in the 1990s, the price increases are nothing short of shocking. “Basically, I am working to buy gas at this point,” West Chester school teacher Kim Fowler says. She just put $80 worth of gas into her three-ton Toyota Sequoia in Florence for a trip to Atlanta. Fowler would love to “even pay $3 a gallon, even though I used to cringe at that.” Leaders and followers Retailers say they usually follow the leader when it comes to setting a daily price. Locally, that leader is Speedway, the Enquirer analysis shows. With at least 80 stores in the area, Speedway owns the highest market share – more than 20 percent of all gas sold in the region, market studies show. Every week during May and June, average area prices spiked on Wednesday, then slowly declined over the next few days before reaching a low on Tuesday. Wednesday’s spike was preceded every week by an increase in Speedway prices on Tuesday. Speedway prices then routinely fell slightly below the area average over the rest of the week. The chain owned by Houstonbased Marathon Oil sold regular, unleaded gas at an average $3.90 a gallon during May and June, falling right in the middle of average prices for all stations. “They are the market leader, and they compete using that advantage,” says Pat Gilligan, president of Hyde Park-based Gilligan Oil, which owns 43 stations in Cincinnati and Columbus. Marathon Oil’s Linda Casey says Speedway has “a high-quality fuel supply, and we can offer it at competitive prices.” She wouldn’t discuss Speedway’s local market position or specific pricing strategies, citing a lawsuit by the Kentucky attorney general over alleged price gouging after Hurricanes Katrina and Rita in fall 2005. Retail price also is influenced by the price a station pays for gas in the first place. A smaller fuel delivery costs more per gallon than a full delivery from an 8,700- major impact on the market. gallon tanker. In addition, franchisees can get Those guys will always push the price frontier. rebates from their parent gas “You’re going to see Kroger companies for volume sold – continue to be a leader in this armuch like incentives that car manufacturers give their dealers. ea and around the country.” Company officials wouldn’t disThat might make a station owner cuss pricing policies. willing to knock a penny or two But in a conference call with off his street price to drive more analysts last month, Kroger execsales. utives said that gas sales only Most consumers are aware that retail prices usually climb as broke even in January, February and March. soon as the price of crude oil “We price our fuel stations spikes, even if the gas in a stareally well on the street price. tion’s underground tanks was And, so, that drives some of the bought at a lower price. (grocery) business, too,” Kroger “I get a lot of flak for that, and it makes me mad because people chairman and CEO Dave Dillon said during the call. don’t understand,” says Steve Local distributor Hightower Harper, whose Florence-based sells gas to Kroger here and elseHarper Oil Co. runs eight convenience stores and supplies anoth- where. He says big-box stores are er 25 or so in Northern Kentucky. “some of the most sophisticated “I’ve got to do that to be able to buyers out there when it comes to gas, and they know how to get get the margin to afford the next the lowest prices.” load, which will be much more expensive. It’s not like I’ll make any profit in the long run – any re- Changing face of retail Fierce competition in difficult turns on raising the price go into times has caused many major oil the next load at a higher price.” companies to leave the retail busiThe Kroger effect ness and concentrate instead on Stations within a mile of Kromore lucrative exploration, exger gas pumps were about a pen- traction and refining operations. ny cheaper than those farther Last fall, the Ameristop conveaway during May and June, the nience store chain went out of Enquirer analysis shows. business. The name survived, Experts say grocers and other however, and many different ownnontraditional gas sellers are pull- ers now sell Shell gasoline under ing prices down everywhere, the Ameristop name. In Northern even selling below cost to lure Kentucky, 11 former Ameristops shoppers inside their stores. are now Road Ranger stores. Kroger began selling gas localShell left the retail business a ly about eight years ago at the few years ago, and England-based Mount Orab store. Now, Kroger BP is selling off its retail outlets. operates fuel centers at 28 of its “It’s hard for BP to manage a 77 stores in Greater Cincinnati station, say at the corner of Broad and Northern Kentucky. and Third in Columbus, from Kroger offers local customers London,” says Karen Dryer, execwho spend $100 a month inside utive vice president of the Ohio the stores the opportunity to pur- Petroleum Marketers Associachase a fill-up at a 10-cent-a-gallon tion. discount. Speedway, owned by Marathon Calvin Taylor of Anderson Oil, will soon be the region’s last Township buys his gas at Kroger remaining convenience-store on Beechmont Road. His main in- chain owned by an oil company. terest is in consolidating trips and More owners could mean a saving money. “I am willing to greater range in gas pricing localwait in line (at the pump), but I ly, although not necessarily lower do it when I buy my groceries,” prices, since owners already are he says. sometimes losing money. Grocers and big-box stores are Nobody is willing to guess slowly changing the retail gas inwhere the high prices might dustry, says Matt Lewis, econom- lead. ics professor at Ohio State Uni“I’ve been around this business versity. Still, he says, the shift is in one way or another for about nothing like the rapid makeover 38 years, and I’ve never seen anyof the market in the 1970s, when thing as serious as what we’re the Arab oil embargo put an emdealing with now,” says Harper, phasis on gas prices and led to in- the Northern Kentucky operator. novations such as self-service “We’ve got increased price for the pumps and convenience stores product, continually depressed selling gas. margins, higher credit card fees “You’re never going to have as and other expenses. many grocery stores as gas sta“If energy prices don’t start gotions to meet the demand,” says ing in the other direction, a lot of Lewis, who specializes in retail people are going to fall out of this gas prices. “But they are having a business.” GAS SECRETS REVIEW The Enquirer’s analysis of daily gas prices in May and June confirmed some old notions and revealed some surprises. AVERAGE PRICE BY DAY OF THE WEEK AVERAGE PRICE BY MAJOR BRAND VALUE OF NEARBY STATIONS 1 2 3 Kroger, Sam’s Club and Costco had the cheapest gas – as much as 10 cents a gallon less than traditional outlets. Store (Number surveyed) Costco (2) Sam’s Club (3) Kroger (28) Meijer (7) Mobil (93) Speedway (80) Regional Average Sunoco (61) BP (107) Marathon (134) Shell (82) $3.82 $3.84 $3.88 $3.89 $3.89 $3.90 $3.91 $3.91 $3.92 $3.92 $3.92 Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Sunday Tuesday was the cheapest day of the week to buy gas. Wednesday was the most expensive. Monday Tuesday Wednesday Thursday $3.911 $3.898 $3.890 $3.917 $3.909 Friday $3.915 Saturday $3.914 Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Gas was one cent a gallon less at stations with a competitor located within a mile. Prices are lower when stations have nearby rivals. $3.925 $3.920 $3.915 $3.910 $3.905 $3.900 -0.5 mile 1 mile 1.5 2 2.5 +2.5 miles miles miles miles DISTANCE FROM NEAREST COMPETITOR Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June 100 95 90 80 70 60 50 40 30 20 10 5 Product: ENQUIRER PubDate: 07-27-2008 Zone: Late Edition: 1 Page Name: A10.0 Time: 07-26-2008 20:58 User: bmullins Color: Cyan Black Yellow Magenta GAS PRICE SECRETS A10 SUNDAY, JULY 27, 2008 How neighborhoods compare How much you pay for gas often depends on where you live. On average, motorists pay more in inner-city neighborhoods and rural areas where fewer gas stations compete for your business. Motorists fueling up in Indian Hill and Verona paid some of the highest prices in May and June, while consumers in Union and Avondale paid some of the lowest. Average price by ZIP code May-June 2008 $3.81 - $3.87 $3.88 - $3.93 $3.94 - $4.00 $4.01 - $4.06 No stations 75 Butler Co. 74 Dearborn Co. Warren Co. Hamilton Co. Clermont Co. 275 275 Kenton Co. Boone Co. Southwest Ohio 45002 45005 45011 45013 45014 45015 45026 45030 45032 45036 45039 45040 45042 45044 45050 45053 45056 45065 45066 45067 45068 45069 45102 45103 45106 45120 45122 45140 45150 45152 45157 45160 45174 45176 45202 45203 45204 45205 45206 45207 45208 45209 45211 45212 45213 45214 45215 45216 45217 45219 45220 45223 45224 45225 45226 45227 45229 45230 Cleves Franklin Hamilton Hamilton Fairfield Hamilton Hamilton Harrison Harveysburg Lebanon Maineville Mason Middletown Middletown Monroe Okeana Oxford South Lebanon Springboro Trenton Waynesville West Chester Amelia Batavia Bethel Felicity Goshen Loveland Milford Morrow New Richmond Owensville Terrace Park Williamsburg Downtown West End Lower Price Hill Price Hill Walnut Hills Evanston Hyde Park Oakley Westwood Norwood Kennedy Heights Fairmount Wyoming Carthage Saint Bernard Corryville Clifton Northside College Hill Camp Washington East End Fairfax Avondale Mount Washington Campbell Co. 75 71 ZIP Code Includes* 71 Average Number Price of stations ZIP Code Includes* $3.94 $3.87 $3.86 $3.90 $3.88 $3.88 $3.88 $3.94 $3.96 $3.92 $3.89 $3.89 $3.90 $3.88 $3.90 $3.92 $3.89 $3.88 $3.87 $3.88 $3.95 $3.91 $3.89 $3.91 $3.96 $4.03 $3.90 $3.89 $3.88 $3.92 $3.94 $3.91 $3.95 $3.95 $3.94 $3.94 $3.90 $3.92 $3.92 $3.92 $3.93 $3.90 $3.91 $3.89 $3.91 $3.91 $3.90 $3.90 $3.90 $3.93 $4.03 $3.92 $3.91 $3.94 $3.92 $3.92 $3.85 $3.93 5 18 16 13 23 3 1 12 1 13 4 17 8 15 4 1 9 1 7 4 4 19 11 12 3 2 2 19 18 2 2 2 3 3 1 3 2 4 3 2 4 6 10 10 6 3 8 7 4 2 1 5 5 5 4 7 5 8 45231 Mount Healthy 45232 Saint Bernard 45233 Delhi Township 45236 Blue Ash 45237 Bond Hill 45238 Covedale 45239 White Oak 45240 Forest Park 45241 Sharonville 45242 Montgomery 45243 Indian Hill 45244 Mariemont 45245 Newtown 45246 Glendale 45247 Colerain Township 45248 Westwood 45249 Symmes Township 45251 Colerain Township 45255 Anderson Township Southwest Ohio total Northern Kentucky ZIP Code Includes* 41001 Alexandria 41005 Burlington 41007 California 41011 Covington 41015 Latonia 41016 Covington 41017 Fort Mitchell 41018 Erlanger 41042 Florence 41048 Hebron 41051 Independence 41059 Melbourne 41071 Newport 41073 Bellevue 41074 Dayton 41075 Fort Thomas 41076 Newport 41091 Union 41092 Verona 41094 Walton Northern Kentucky total Southeastern Indiana ZIP Code Includes* 47001 Aurora 47018 Dillsboro 47022 Guilford 47025 Lawrenceburg 47032 Moores Hill 47060 West Harrison Southeastern Indiana total Regional total Average Number Price of stations $3.90 $3.91 $3.95 $3.92 $3.91 $3.91 $3.92 $3.87 $3.91 $3.92 $4.05 $3.91 $3.90 $3.89 $3.92 $3.91 $3.89 $3.94 $3.91 $3.90 20 1 4 11 5 14 8 9 15 11 2 15 9 10 8 7 7 6 7 561 Average Number Price of stations $3.90 $3.95 $3.92 $3.92 $3.90 $3.96 $3.94 $3.93 $3.91 $3.92 $3.92 $3.91 $3.91 $3.90 $3.89 $3.96 $3.89 $3.81 $4.06 $3.92 $3.91 10 2 2 12 6 1 13 12 27 5 4 1 4 3 1 3 11 3 2 8 130 Average Number Price of stations $3.96 $3.97 $4.01 $3.95 $3.97 $3.95 $3.96 $3.91 7 2 1 11 1 3 25 716 *ZIP codes often contain multiple neighborhoods, and neighborhoods often cross several ZIP codes. These representative neighborhoods are listed simply to help readers locate the ZIP code. Source: Enquirer analysis of data from the Oil Price Information Service. Analysis based on sales of regular, unleaded gas at 716 stations in SW Ohio, N. Kentucky and SE Indiana. The Enquirer/Gregory Korte, Randy Mazzola About this report: 716 stations, 61 days T o unlock the secrets of retail gas prices, The Enquirer analyzed a database of daily gas prices reported by 716 stations in Greater Cincinnati, Northern Kentucky and Southeastern Indiana. Data were reported over 61 days in May and June – a time period that saw a 50-cent climb in average gas prices. In all, 31,439 price points were analyzed. The data came courtesy of the Oil Price Information Service, a Wall, N.J., provider of pricing data. It’s the same source used by many gasoline retailers to monitor the competition and set their own prices. All prices in this report are for a gallon of regular unleaded gas. Not all participating stations reported prices for all days; the typical station reported data for 44 of the 61 days. In some cases, The Enquirer omitted stations from the analysis when the small number of reporting dates would have skewed their average cost. Other sources of data included interstate ramp maps supplied by the Ohio-Kentucky-Indiana Regional Council of Governments and ZIP-code areas from the U.S. Census Bureau. Data supplied by the Oil Price Information Service differs from numbers provided by Gasbuddy.com, which supplies retail gas prices to many media outlets including The Enquirer’s Web site, Cincinnati.Com. Gasbuddy data come from prices reported by motorists, who share prices they see with others in an online forum. It’s free (as opposed to the subscription-based OPIS data) and available in real time. The data used for this report, on the other hand, are more comprehensive – about 80 percent of the region’s stations participate. It’s also more reliable because prices come directly from creditcard charges for the actual cost paid. — Gregory Korte and James Pilcher REVEALED THE ENQUIRER Gas: Stations in price dogfight From Page A1 m Speedway has emerged as the region’s market leader. It routinely uses its competitive power to set pricing, and other stations follow. m Increasing numbers of fueling stations at Kroger, Costco, Sam’s Club and other large operators are making gas sales more competitive, with lower-than-average prices. m Most oil companies are exiting the difficult retail gas business. That’s increased the number of smaller gas station owners who can influence street pricing up or down. The cost of crude oil, refining expenses, taxes and marketing all are driving the price of gas. But most of the profits have long been pocketed by the oil companies and refineries that pulled crude out of the ground, shipped it and made it into gas. What’s left of your gas dollar is open to cutthroat competition. “Once the product leaves the refinery gate, it’s every man for himself,” says James Patneau Jr., chairman of the Ohio Petroleum Marketers and Convenience Store Association, who runs four stations and delivers gas to 30 or so others around Cleveland. Competition rules Greater Cincinnati and Northern Kentucky is among the most competitive regions in the country, noted for relatively small differences between wholesale and retail gas prices, according to the Oil Price Information Service, a Wall, N.J., firm that tracks national oil and gas pricing. The company supplied the daily prices for regular unleaded gas used in The Enquirer’s analysis. Greater Cincinnati also has a relatively high concentration of gas stations competing, according to the U.S. Census Bureau. Cincinnati’s 92 gas stations per 100,000 households compares to 87 for Indianapolis, 86 for Kansas City, Mo., and 62 for Sacramento, Calif. – all cities of similar or slightly larger size. Add relative newcomer Kroger and its strategy of undercutting street pricing through its loyalty card program, and competition has become even more intense. “This is a penny business – we’re all just fighting over pennies,” says Stephen Hightower, president and chief executive officer of Franklin-based Hightowers Petroleum Co. His company supplies gas to hundreds of U.S. stations and is trying to buy more than 100 BP stations. “Unfortunately, it’s that marquee sign across the street that determines whether we’ll make a penny or five or lose two to three,” he says. Daily, station managers and owners decide whether to match price increases or decreases by competitors across the street, or to raise prices on their own – and maybe make more profit but lose all-important volume. The decisions can mean the difference between eking out a meager profit and losing money. Take this typical scenario: A station owner buys gas at $3.55 a gallon and sells it for $3.86, current wholesale and retail averages in Southwest Ohio. The dealer nets a gross profit of 31 cents a gallon, or $2,480 a week if he sells 8,000 gallons – a very busy store. But credit card companies are charging gas retailers 3 percent or more on total sales, meaning that $926 or more is knocked off the owner’s profit since the vast majority of purchases are made with plastic. That leaves about $1,500 before covering costs such as insurance, payroll, the mortgage and possible drive-off thefts. Replacing hose nozzles – a station might lose two a month to absent-minded drivers – will cost $600 each. Prices may be slightly different in Kentucky, but the effect is still the same: Station owners say they make more profit off a $1.49 cup of coffee than a full tank of gas. “The store will not pay for your overhead,” says Robert Lusby, who owns a Sunoco station on Buttermilk Pike just off Interstate The Enquirer/Jeff Swinger Ebony Johnson (left), 14, and her mother, Anissa Johnson of Westwood, pump gas into their van Friday at the Western Hills Kroger. 71/75 in Crescent Springs. “You can’t sell enough Twinkies and soda to make it – I lost $80,000 last year.” When asked why he’s still in the business, Lusby shoots back: “Want to buy it?” The cents are adding up for consumers as well: Americans spent nearly $100 million more on gas in June than in May, and $1 billion more on gas in June than during the same month five years ago. For consumers used to a decade of cheap energy in the 1990s, the price increases are nothing short of shocking. “Basically, I am working to buy gas at this point,” West Chester school teacher Kim Fowler says. She just put $80 worth of gas into her three-ton Toyota Sequoia in Florence for a trip to Atlanta. Fowler would love to “even pay $3 a gallon, even though I used to cringe at that.” Leaders and followers Retailers say they usually follow the leader when it comes to setting a daily price. Locally, that leader is Speedway, the Enquirer analysis shows. With at least 80 stores in the area, Speedway owns the highest market share – more than 20 percent of all gas sold in the region, market studies show. Every week during May and June, average area prices spiked on Wednesday, then slowly declined over the next few days before reaching a low on Tuesday. Wednesday’s spike was preceded every week by an increase in Speedway prices on Tuesday. Speedway prices then routinely fell slightly below the area average over the rest of the week. The chain owned by Houstonbased Marathon Oil sold regular, unleaded gas at an average $3.90 a gallon during May and June, falling right in the middle of average prices for all stations. “They are the market leader, and they compete using that advantage,” says Pat Gilligan, president of Hyde Park-based Gilligan Oil, which owns 43 stations in Cincinnati and Columbus. Marathon Oil’s Linda Casey says Speedway has “a high-quality fuel supply, and we can offer it at competitive prices.” She wouldn’t discuss Speedway’s local market position or specific pricing strategies, citing a lawsuit by the Kentucky attorney general over alleged price gouging after Hurricanes Katrina and Rita in fall 2005. Retail price also is influenced by the price a station pays for gas in the first place. A smaller fuel delivery costs more per gallon than a full delivery from an 8,700- major impact on the market. gallon tanker. In addition, franchisees can get Those guys will always push the price frontier. rebates from their parent gas “You’re going to see Kroger companies for volume sold – continue to be a leader in this armuch like incentives that car manufacturers give their dealers. ea and around the country.” Company officials wouldn’t disThat might make a station owner cuss pricing policies. willing to knock a penny or two But in a conference call with off his street price to drive more analysts last month, Kroger execsales. utives said that gas sales only Most consumers are aware that retail prices usually climb as broke even in January, February and March. soon as the price of crude oil “We price our fuel stations spikes, even if the gas in a stareally well on the street price. tion’s underground tanks was And, so, that drives some of the bought at a lower price. (grocery) business, too,” Kroger “I get a lot of flak for that, and it makes me mad because people chairman and CEO Dave Dillon said during the call. don’t understand,” says Steve Local distributor Hightower Harper, whose Florence-based sells gas to Kroger here and elseHarper Oil Co. runs eight convenience stores and supplies anoth- where. He says big-box stores are er 25 or so in Northern Kentucky. “some of the most sophisticated “I’ve got to do that to be able to buyers out there when it comes to gas, and they know how to get get the margin to afford the next the lowest prices.” load, which will be much more expensive. It’s not like I’ll make any profit in the long run – any re- Changing face of retail Fierce competition in difficult turns on raising the price go into times has caused many major oil the next load at a higher price.” companies to leave the retail busiThe Kroger effect ness and concentrate instead on Stations within a mile of Kromore lucrative exploration, exger gas pumps were about a pen- traction and refining operations. ny cheaper than those farther Last fall, the Ameristop conveaway during May and June, the nience store chain went out of Enquirer analysis shows. business. The name survived, Experts say grocers and other however, and many different ownnontraditional gas sellers are pull- ers now sell Shell gasoline under ing prices down everywhere, the Ameristop name. In Northern even selling below cost to lure Kentucky, 11 former Ameristops shoppers inside their stores. are now Road Ranger stores. Kroger began selling gas localShell left the retail business a ly about eight years ago at the few years ago, and England-based Mount Orab store. Now, Kroger BP is selling off its retail outlets. operates fuel centers at 28 of its “It’s hard for BP to manage a 77 stores in Greater Cincinnati station, say at the corner of Broad and Northern Kentucky. and Third in Columbus, from Kroger offers local customers London,” says Karen Dryer, execwho spend $100 a month inside utive vice president of the Ohio the stores the opportunity to pur- Petroleum Marketers Associachase a fill-up at a 10-cent-a-gallon tion. discount. Speedway, owned by Marathon Calvin Taylor of Anderson Oil, will soon be the region’s last Township buys his gas at Kroger remaining convenience-store on Beechmont Road. His main in- chain owned by an oil company. terest is in consolidating trips and More owners could mean a saving money. “I am willing to greater range in gas pricing localwait in line (at the pump), but I ly, although not necessarily lower do it when I buy my groceries,” prices, since owners already are he says. sometimes losing money. Grocers and big-box stores are Nobody is willing to guess slowly changing the retail gas inwhere the high prices might dustry, says Matt Lewis, econom- lead. ics professor at Ohio State Uni“I’ve been around this business versity. Still, he says, the shift is in one way or another for about nothing like the rapid makeover 38 years, and I’ve never seen anyof the market in the 1970s, when thing as serious as what we’re the Arab oil embargo put an emdealing with now,” says Harper, phasis on gas prices and led to in- the Northern Kentucky operator. novations such as self-service “We’ve got increased price for the pumps and convenience stores product, continually depressed selling gas. margins, higher credit card fees “You’re never going to have as and other expenses. many grocery stores as gas sta“If energy prices don’t start gotions to meet the demand,” says ing in the other direction, a lot of Lewis, who specializes in retail people are going to fall out of this gas prices. “But they are having a business.” GAS SECRETS REVIEW The Enquirer’s analysis of daily gas prices in May and June confirmed some old notions and revealed some surprises. AVERAGE PRICE BY DAY OF THE WEEK AVERAGE PRICE BY MAJOR BRAND VALUE OF NEARBY STATIONS 1 2 3 Kroger, Sam’s Club and Costco had the cheapest gas – as much as 10 cents a gallon less than traditional outlets. Store (Number surveyed) Costco (2) Sam’s Club (3) Kroger (28) Meijer (7) Mobil (93) Speedway (80) Regional Average Sunoco (61) BP (107) Marathon (134) Shell (82) $3.82 $3.84 $3.88 $3.89 $3.89 $3.90 $3.91 $3.91 $3.92 $3.92 $3.92 Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Sunday Tuesday was the cheapest day of the week to buy gas. Wednesday was the most expensive. Monday Tuesday Wednesday Thursday $3.911 $3.898 $3.890 $3.917 $3.909 Friday $3.915 Saturday $3.914 Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Gas was one cent a gallon less at stations with a competitor located within a mile. Prices are lower when stations have nearby rivals. $3.925 $3.920 $3.915 $3.910 $3.905 $3.900 -0.5 mile 1 mile 1.5 2 2.5 +2.5 miles miles miles miles DISTANCE FROM NEAREST COMPETITOR Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June 100 95 90 80 70 60 50 40 30 20 10 5 Product: ENQUIRER PubDate: 07-27-2008 Zone: Late Edition: 1 Page Name: A10.0 Time: 07-26-2008 20:58 User: bmullins Color: Cyan Black Yellow Magenta GAS PRICE SECRETS A10 SUNDAY, JULY 27, 2008 How neighborhoods compare How much you pay for gas often depends on where you live. On average, motorists pay more in inner-city neighborhoods and rural areas where fewer gas stations compete for your business. Motorists fueling up in Indian Hill and Verona paid some of the highest prices in May and June, while consumers in Union and Avondale paid some of the lowest. Average price by ZIP code May-June 2008 $3.81 - $3.87 $3.88 - $3.93 $3.94 - $4.00 $4.01 - $4.06 No stations 75 Butler Co. 74 Dearborn Co. Warren Co. Hamilton Co. Clermont Co. 275 275 Kenton Co. Boone Co. Southwest Ohio 45002 45005 45011 45013 45014 45015 45026 45030 45032 45036 45039 45040 45042 45044 45050 45053 45056 45065 45066 45067 45068 45069 45102 45103 45106 45120 45122 45140 45150 45152 45157 45160 45174 45176 45202 45203 45204 45205 45206 45207 45208 45209 45211 45212 45213 45214 45215 45216 45217 45219 45220 45223 45224 45225 45226 45227 45229 45230 Cleves Franklin Hamilton Hamilton Fairfield Hamilton Hamilton Harrison Harveysburg Lebanon Maineville Mason Middletown Middletown Monroe Okeana Oxford South Lebanon Springboro Trenton Waynesville West Chester Amelia Batavia Bethel Felicity Goshen Loveland Milford Morrow New Richmond Owensville Terrace Park Williamsburg Downtown West End Lower Price Hill Price Hill Walnut Hills Evanston Hyde Park Oakley Westwood Norwood Kennedy Heights Fairmount Wyoming Carthage Saint Bernard Corryville Clifton Northside College Hill Camp Washington East End Fairfax Avondale Mount Washington Campbell Co. 75 71 ZIP Code Includes* 71 Average Number Price of stations ZIP Code Includes* $3.94 $3.87 $3.86 $3.90 $3.88 $3.88 $3.88 $3.94 $3.96 $3.92 $3.89 $3.89 $3.90 $3.88 $3.90 $3.92 $3.89 $3.88 $3.87 $3.88 $3.95 $3.91 $3.89 $3.91 $3.96 $4.03 $3.90 $3.89 $3.88 $3.92 $3.94 $3.91 $3.95 $3.95 $3.94 $3.94 $3.90 $3.92 $3.92 $3.92 $3.93 $3.90 $3.91 $3.89 $3.91 $3.91 $3.90 $3.90 $3.90 $3.93 $4.03 $3.92 $3.91 $3.94 $3.92 $3.92 $3.85 $3.93 5 18 16 13 23 3 1 12 1 13 4 17 8 15 4 1 9 1 7 4 4 19 11 12 3 2 2 19 18 2 2 2 3 3 1 3 2 4 3 2 4 6 10 10 6 3 8 7 4 2 1 5 5 5 4 7 5 8 45231 Mount Healthy 45232 Saint Bernard 45233 Delhi Township 45236 Blue Ash 45237 Bond Hill 45238 Covedale 45239 White Oak 45240 Forest Park 45241 Sharonville 45242 Montgomery 45243 Indian Hill 45244 Mariemont 45245 Newtown 45246 Glendale 45247 Colerain Township 45248 Westwood 45249 Symmes Township 45251 Colerain Township 45255 Anderson Township Southwest Ohio total Northern Kentucky ZIP Code Includes* 41001 Alexandria 41005 Burlington 41007 California 41011 Covington 41015 Latonia 41016 Covington 41017 Fort Mitchell 41018 Erlanger 41042 Florence 41048 Hebron 41051 Independence 41059 Melbourne 41071 Newport 41073 Bellevue 41074 Dayton 41075 Fort Thomas 41076 Newport 41091 Union 41092 Verona 41094 Walton Northern Kentucky total Southeastern Indiana ZIP Code Includes* 47001 Aurora 47018 Dillsboro 47022 Guilford 47025 Lawrenceburg 47032 Moores Hill 47060 West Harrison Southeastern Indiana total Regional total Average Number Price of stations $3.90 $3.91 $3.95 $3.92 $3.91 $3.91 $3.92 $3.87 $3.91 $3.92 $4.05 $3.91 $3.90 $3.89 $3.92 $3.91 $3.89 $3.94 $3.91 $3.90 20 1 4 11 5 14 8 9 15 11 2 15 9 10 8 7 7 6 7 561 Average Number Price of stations $3.90 $3.95 $3.92 $3.92 $3.90 $3.96 $3.94 $3.93 $3.91 $3.92 $3.92 $3.91 $3.91 $3.90 $3.89 $3.96 $3.89 $3.81 $4.06 $3.92 $3.91 10 2 2 12 6 1 13 12 27 5 4 1 4 3 1 3 11 3 2 8 130 Average Number Price of stations $3.96 $3.97 $4.01 $3.95 $3.97 $3.95 $3.96 $3.91 7 2 1 11 1 3 25 716 *ZIP codes often contain multiple neighborhoods, and neighborhoods often cross several ZIP codes. These representative neighborhoods are listed simply to help readers locate the ZIP code. Source: Enquirer analysis of data from the Oil Price Information Service. Analysis based on sales of regular, unleaded gas at 716 stations in SW Ohio, N. Kentucky and SE Indiana. The Enquirer/Gregory Korte, Randy Mazzola About this report: 716 stations, 61 days T o unlock the secrets of retail gas prices, The Enquirer analyzed a database of daily gas prices reported by 716 stations in Greater Cincinnati, Northern Kentucky and Southeastern Indiana. Data were reported over 61 days in May and June – a time period that saw a 50-cent climb in average gas prices. In all, 31,439 price points were analyzed. The data came courtesy of the Oil Price Information Service, a Wall, N.J., provider of pricing data. It’s the same source used by many gasoline retailers to monitor the competition and set their own prices. All prices in this report are for a gallon of regular unleaded gas. Not all participating stations reported prices for all days; the typical station reported data for 44 of the 61 days. In some cases, The Enquirer omitted stations from the analysis when the small number of reporting dates would have skewed their average cost. Other sources of data included interstate ramp maps supplied by the Ohio-Kentucky-Indiana Regional Council of Governments and ZIP-code areas from the U.S. Census Bureau. Data supplied by the Oil Price Information Service differs from numbers provided by Gasbuddy.com, which supplies retail gas prices to many media outlets including The Enquirer’s Web site, Cincinnati.Com. Gasbuddy data come from prices reported by motorists, who share prices they see with others in an online forum. It’s free (as opposed to the subscription-based OPIS data) and available in real time. The data used for this report, on the other hand, are more comprehensive – about 80 percent of the region’s stations participate. It’s also more reliable because prices come directly from creditcard charges for the actual cost paid. — Gregory Korte and James Pilcher REVEALED THE ENQUIRER Gas: Stations in price dogfight From Page A1 m Speedway has emerged as the region’s market leader. It routinely uses its competitive power to set pricing, and other stations follow. m Increasing numbers of fueling stations at Kroger, Costco, Sam’s Club and other large operators are making gas sales more competitive, with lower-than-average prices. m Most oil companies are exiting the difficult retail gas business. That’s increased the number of smaller gas station owners who can influence street pricing up or down. The cost of crude oil, refining expenses, taxes and marketing all are driving the price of gas. But most of the profits have long been pocketed by the oil companies and refineries that pulled crude out of the ground, shipped it and made it into gas. What’s left of your gas dollar is open to cutthroat competition. “Once the product leaves the refinery gate, it’s every man for himself,” says James Patneau Jr., chairman of the Ohio Petroleum Marketers and Convenience Store Association, who runs four stations and delivers gas to 30 or so others around Cleveland. Competition rules Greater Cincinnati and Northern Kentucky is among the most competitive regions in the country, noted for relatively small differences between wholesale and retail gas prices, according to the Oil Price Information Service, a Wall, N.J., firm that tracks national oil and gas pricing. The company supplied the daily prices for regular unleaded gas used in The Enquirer’s analysis. Greater Cincinnati also has a relatively high concentration of gas stations competing, according to the U.S. Census Bureau. Cincinnati’s 92 gas stations per 100,000 households compares to 87 for Indianapolis, 86 for Kansas City, Mo., and 62 for Sacramento, Calif. – all cities of similar or slightly larger size. Add relative newcomer Kroger and its strategy of undercutting street pricing through its loyalty card program, and competition has become even more intense. “This is a penny business – we’re all just fighting over pennies,” says Stephen Hightower, president and chief executive officer of Franklin-based Hightowers Petroleum Co. His company supplies gas to hundreds of U.S. stations and is trying to buy more than 100 BP stations. “Unfortunately, it’s that marquee sign across the street that determines whether we’ll make a penny or five or lose two to three,” he says. Daily, station managers and owners decide whether to match price increases or decreases by competitors across the street, or to raise prices on their own – and maybe make more profit but lose all-important volume. The decisions can mean the difference between eking out a meager profit and losing money. Take this typical scenario: A station owner buys gas at $3.55 a gallon and sells it for $3.86, current wholesale and retail averages in Southwest Ohio. The dealer nets a gross profit of 31 cents a gallon, or $2,480 a week if he sells 8,000 gallons – a very busy store. But credit card companies are charging gas retailers 3 percent or more on total sales, meaning that $926 or more is knocked off the owner’s profit since the vast majority of purchases are made with plastic. That leaves about $1,500 before covering costs such as insurance, payroll, the mortgage and possible drive-off thefts. Replacing hose nozzles – a station might lose two a month to absent-minded drivers – will cost $600 each. Prices may be slightly different in Kentucky, but the effect is still the same: Station owners say they make more profit off a $1.49 cup of coffee than a full tank of gas. “The store will not pay for your overhead,” says Robert Lusby, who owns a Sunoco station on Buttermilk Pike just off Interstate The Enquirer/Jeff Swinger Ebony Johnson (left), 14, and her mother, Anissa Johnson of Westwood, pump gas into their van Friday at the Western Hills Kroger. 71/75 in Crescent Springs. “You can’t sell enough Twinkies and soda to make it – I lost $80,000 last year.” When asked why he’s still in the business, Lusby shoots back: “Want to buy it?” The cents are adding up for consumers as well: Americans spent nearly $100 million more on gas in June than in May, and $1 billion more on gas in June than during the same month five years ago. For consumers used to a decade of cheap energy in the 1990s, the price increases are nothing short of shocking. “Basically, I am working to buy gas at this point,” West Chester school teacher Kim Fowler says. She just put $80 worth of gas into her three-ton Toyota Sequoia in Florence for a trip to Atlanta. Fowler would love to “even pay $3 a gallon, even though I used to cringe at that.” Leaders and followers Retailers say they usually follow the leader when it comes to setting a daily price. Locally, that leader is Speedway, the Enquirer analysis shows. With at least 80 stores in the area, Speedway owns the highest market share – more than 20 percent of all gas sold in the region, market studies show. Every week during May and June, average area prices spiked on Wednesday, then slowly declined over the next few days before reaching a low on Tuesday. Wednesday’s spike was preceded every week by an increase in Speedway prices on Tuesday. Speedway prices then routinely fell slightly below the area average over the rest of the week. The chain owned by Houstonbased Marathon Oil sold regular, unleaded gas at an average $3.90 a gallon during May and June, falling right in the middle of average prices for all stations. “They are the market leader, and they compete using that advantage,” says Pat Gilligan, president of Hyde Park-based Gilligan Oil, which owns 43 stations in Cincinnati and Columbus. Marathon Oil’s Linda Casey says Speedway has “a high-quality fuel supply, and we can offer it at competitive prices.” She wouldn’t discuss Speedway’s local market position or specific pricing strategies, citing a lawsuit by the Kentucky attorney general over alleged price gouging after Hurricanes Katrina and Rita in fall 2005. Retail price also is influenced by the price a station pays for gas in the first place. A smaller fuel delivery costs more per gallon than a full delivery from an 8,700- major impact on the market. gallon tanker. In addition, franchisees can get Those guys will always push the price frontier. rebates from their parent gas “You’re going to see Kroger companies for volume sold – continue to be a leader in this armuch like incentives that car manufacturers give their dealers. ea and around the country.” Company officials wouldn’t disThat might make a station owner cuss pricing policies. willing to knock a penny or two But in a conference call with off his street price to drive more analysts last month, Kroger execsales. utives said that gas sales only Most consumers are aware that retail prices usually climb as broke even in January, February and March. soon as the price of crude oil “We price our fuel stations spikes, even if the gas in a stareally well on the street price. tion’s underground tanks was And, so, that drives some of the bought at a lower price. (grocery) business, too,” Kroger “I get a lot of flak for that, and it makes me mad because people chairman and CEO Dave Dillon said during the call. don’t understand,” says Steve Local distributor Hightower Harper, whose Florence-based sells gas to Kroger here and elseHarper Oil Co. runs eight convenience stores and supplies anoth- where. He says big-box stores are er 25 or so in Northern Kentucky. “some of the most sophisticated “I’ve got to do that to be able to buyers out there when it comes to gas, and they know how to get get the margin to afford the next the lowest prices.” load, which will be much more expensive. It’s not like I’ll make any profit in the long run – any re- Changing face of retail Fierce competition in difficult turns on raising the price go into times has caused many major oil the next load at a higher price.” companies to leave the retail busiThe Kroger effect ness and concentrate instead on Stations within a mile of Kromore lucrative exploration, exger gas pumps were about a pen- traction and refining operations. ny cheaper than those farther Last fall, the Ameristop conveaway during May and June, the nience store chain went out of Enquirer analysis shows. business. The name survived, Experts say grocers and other however, and many different ownnontraditional gas sellers are pull- ers now sell Shell gasoline under ing prices down everywhere, the Ameristop name. In Northern even selling below cost to lure Kentucky, 11 former Ameristops shoppers inside their stores. are now Road Ranger stores. Kroger began selling gas localShell left the retail business a ly about eight years ago at the few years ago, and England-based Mount Orab store. Now, Kroger BP is selling off its retail outlets. operates fuel centers at 28 of its “It’s hard for BP to manage a 77 stores in Greater Cincinnati station, say at the corner of Broad and Northern Kentucky. and Third in Columbus, from Kroger offers local customers London,” says Karen Dryer, execwho spend $100 a month inside utive vice president of the Ohio the stores the opportunity to pur- Petroleum Marketers Associachase a fill-up at a 10-cent-a-gallon tion. discount. Speedway, owned by Marathon Calvin Taylor of Anderson Oil, will soon be the region’s last Township buys his gas at Kroger remaining convenience-store on Beechmont Road. His main in- chain owned by an oil company. terest is in consolidating trips and More owners could mean a saving money. “I am willing to greater range in gas pricing localwait in line (at the pump), but I ly, although not necessarily lower do it when I buy my groceries,” prices, since owners already are he says. sometimes losing money. Grocers and big-box stores are Nobody is willing to guess slowly changing the retail gas inwhere the high prices might dustry, says Matt Lewis, econom- lead. ics professor at Ohio State Uni“I’ve been around this business versity. Still, he says, the shift is in one way or another for about nothing like the rapid makeover 38 years, and I’ve never seen anyof the market in the 1970s, when thing as serious as what we’re the Arab oil embargo put an emdealing with now,” says Harper, phasis on gas prices and led to in- the Northern Kentucky operator. novations such as self-service “We’ve got increased price for the pumps and convenience stores product, continually depressed selling gas. margins, higher credit card fees “You’re never going to have as and other expenses. many grocery stores as gas sta“If energy prices don’t start gotions to meet the demand,” says ing in the other direction, a lot of Lewis, who specializes in retail people are going to fall out of this gas prices. “But they are having a business.” GAS SECRETS REVIEW The Enquirer’s analysis of daily gas prices in May and June confirmed some old notions and revealed some surprises. AVERAGE PRICE BY DAY OF THE WEEK AVERAGE PRICE BY MAJOR BRAND VALUE OF NEARBY STATIONS 1 2 3 Kroger, Sam’s Club and Costco had the cheapest gas – as much as 10 cents a gallon less than traditional outlets. Store (Number surveyed) Costco (2) Sam’s Club (3) Kroger (28) Meijer (7) Mobil (93) Speedway (80) Regional Average Sunoco (61) BP (107) Marathon (134) Shell (82) $3.82 $3.84 $3.88 $3.89 $3.89 $3.90 $3.91 $3.91 $3.92 $3.92 $3.92 Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Sunday Tuesday was the cheapest day of the week to buy gas. Wednesday was the most expensive. Monday Tuesday Wednesday Thursday $3.911 $3.898 $3.890 $3.917 $3.909 Friday $3.915 Saturday $3.914 Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Gas was one cent a gallon less at stations with a competitor located within a mile. Prices are lower when stations have nearby rivals. $3.925 $3.920 $3.915 $3.910 $3.905 $3.900 -0.5 mile 1 mile 1.5 2 2.5 +2.5 miles miles miles miles DISTANCE FROM NEAREST COMPETITOR Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June 100 95 90 80 70 60 50 40 30 20 10 5 Product: ENQUIRER PubDate: 07-27-2008 Zone: Late Edition: 1 Page Name: A10.0 Time: 07-26-2008 20:58 User: bmullins Color: Cyan Black Yellow Magenta GAS PRICE SECRETS A10 SUNDAY, JULY 27, 2008 How neighborhoods compare How much you pay for gas often depends on where you live. On average, motorists pay more in inner-city neighborhoods and rural areas where fewer gas stations compete for your business. Motorists fueling up in Indian Hill and Verona paid some of the highest prices in May and June, while consumers in Union and Avondale paid some of the lowest. Average price by ZIP code May-June 2008 $3.81 - $3.87 $3.88 - $3.93 $3.94 - $4.00 $4.01 - $4.06 No stations 75 Butler Co. 74 Dearborn Co. Warren Co. Hamilton Co. Clermont Co. 275 275 Kenton Co. Boone Co. Southwest Ohio 45002 45005 45011 45013 45014 45015 45026 45030 45032 45036 45039 45040 45042 45044 45050 45053 45056 45065 45066 45067 45068 45069 45102 45103 45106 45120 45122 45140 45150 45152 45157 45160 45174 45176 45202 45203 45204 45205 45206 45207 45208 45209 45211 45212 45213 45214 45215 45216 45217 45219 45220 45223 45224 45225 45226 45227 45229 45230 Cleves Franklin Hamilton Hamilton Fairfield Hamilton Hamilton Harrison Harveysburg Lebanon Maineville Mason Middletown Middletown Monroe Okeana Oxford South Lebanon Springboro Trenton Waynesville West Chester Amelia Batavia Bethel Felicity Goshen Loveland Milford Morrow New Richmond Owensville Terrace Park Williamsburg Downtown West End Lower Price Hill Price Hill Walnut Hills Evanston Hyde Park Oakley Westwood Norwood Kennedy Heights Fairmount Wyoming Carthage Saint Bernard Corryville Clifton Northside College Hill Camp Washington East End Fairfax Avondale Mount Washington Campbell Co. 75 71 ZIP Code Includes* 71 Average Number Price of stations ZIP Code Includes* $3.94 $3.87 $3.86 $3.90 $3.88 $3.88 $3.88 $3.94 $3.96 $3.92 $3.89 $3.89 $3.90 $3.88 $3.90 $3.92 $3.89 $3.88 $3.87 $3.88 $3.95 $3.91 $3.89 $3.91 $3.96 $4.03 $3.90 $3.89 $3.88 $3.92 $3.94 $3.91 $3.95 $3.95 $3.94 $3.94 $3.90 $3.92 $3.92 $3.92 $3.93 $3.90 $3.91 $3.89 $3.91 $3.91 $3.90 $3.90 $3.90 $3.93 $4.03 $3.92 $3.91 $3.94 $3.92 $3.92 $3.85 $3.93 5 18 16 13 23 3 1 12 1 13 4 17 8 15 4 1 9 1 7 4 4 19 11 12 3 2 2 19 18 2 2 2 3 3 1 3 2 4 3 2 4 6 10 10 6 3 8 7 4 2 1 5 5 5 4 7 5 8 45231 Mount Healthy 45232 Saint Bernard 45233 Delhi Township 45236 Blue Ash 45237 Bond Hill 45238 Covedale 45239 White Oak 45240 Forest Park 45241 Sharonville 45242 Montgomery 45243 Indian Hill 45244 Mariemont 45245 Newtown 45246 Glendale 45247 Colerain Township 45248 Westwood 45249 Symmes Township 45251 Colerain Township 45255 Anderson Township Southwest Ohio total Northern Kentucky ZIP Code Includes* 41001 Alexandria 41005 Burlington 41007 California 41011 Covington 41015 Latonia 41016 Covington 41017 Fort Mitchell 41018 Erlanger 41042 Florence 41048 Hebron 41051 Independence 41059 Melbourne 41071 Newport 41073 Bellevue 41074 Dayton 41075 Fort Thomas 41076 Newport 41091 Union 41092 Verona 41094 Walton Northern Kentucky total Southeastern Indiana ZIP Code Includes* 47001 Aurora 47018 Dillsboro 47022 Guilford 47025 Lawrenceburg 47032 Moores Hill 47060 West Harrison Southeastern Indiana total Regional total Average Number Price of stations $3.90 $3.91 $3.95 $3.92 $3.91 $3.91 $3.92 $3.87 $3.91 $3.92 $4.05 $3.91 $3.90 $3.89 $3.92 $3.91 $3.89 $3.94 $3.91 $3.90 20 1 4 11 5 14 8 9 15 11 2 15 9 10 8 7 7 6 7 561 Average Number Price of stations $3.90 $3.95 $3.92 $3.92 $3.90 $3.96 $3.94 $3.93 $3.91 $3.92 $3.92 $3.91 $3.91 $3.90 $3.89 $3.96 $3.89 $3.81 $4.06 $3.92 $3.91 10 2 2 12 6 1 13 12 27 5 4 1 4 3 1 3 11 3 2 8 130 Average Number Price of stations $3.96 $3.97 $4.01 $3.95 $3.97 $3.95 $3.96 $3.91 7 2 1 11 1 3 25 716 *ZIP codes often contain multiple neighborhoods, and neighborhoods often cross several ZIP codes. These representative neighborhoods are listed simply to help readers locate the ZIP code. Source: Enquirer analysis of data from the Oil Price Information Service. Analysis based on sales of regular, unleaded gas at 716 stations in SW Ohio, N. Kentucky and SE Indiana. The Enquirer/Gregory Korte, Randy Mazzola About this report: 716 stations, 61 days T o unlock the secrets of retail gas prices, The Enquirer analyzed a database of daily gas prices reported by 716 stations in Greater Cincinnati, Northern Kentucky and Southeastern Indiana. Data were reported over 61 days in May and June – a time period that saw a 50-cent climb in average gas prices. In all, 31,439 price points were analyzed. The data came courtesy of the Oil Price Information Service, a Wall, N.J., provider of pricing data. It’s the same source used by many gasoline retailers to monitor the competition and set their own prices. All prices in this report are for a gallon of regular unleaded gas. Not all participating stations reported prices for all days; the typical station reported data for 44 of the 61 days. In some cases, The Enquirer omitted stations from the analysis when the small number of reporting dates would have skewed their average cost. Other sources of data included interstate ramp maps supplied by the Ohio-Kentucky-Indiana Regional Council of Governments and ZIP-code areas from the U.S. Census Bureau. Data supplied by the Oil Price Information Service differs from numbers provided by Gasbuddy.com, which supplies retail gas prices to many media outlets including The Enquirer’s Web site, Cincinnati.Com. Gasbuddy data come from prices reported by motorists, who share prices they see with others in an online forum. It’s free (as opposed to the subscription-based OPIS data) and available in real time. The data used for this report, on the other hand, are more comprehensive – about 80 percent of the region’s stations participate. It’s also more reliable because prices come directly from creditcard charges for the actual cost paid. — Gregory Korte and James Pilcher REVEALED THE ENQUIRER Gas: Stations in price dogfight From Page A1 m Speedway has emerged as the region’s market leader. It routinely uses its competitive power to set pricing, and other stations follow. m Increasing numbers of fueling stations at Kroger, Costco, Sam’s Club and other large operators are making gas sales more competitive, with lower-than-average prices. m Most oil companies are exiting the difficult retail gas business. That’s increased the number of smaller gas station owners who can influence street pricing up or down. The cost of crude oil, refining expenses, taxes and marketing all are driving the price of gas. But most of the profits have long been pocketed by the oil companies and refineries that pulled crude out of the ground, shipped it and made it into gas. What’s left of your gas dollar is open to cutthroat competition. “Once the product leaves the refinery gate, it’s every man for himself,” says James Patneau Jr., chairman of the Ohio Petroleum Marketers and Convenience Store Association, who runs four stations and delivers gas to 30 or so others around Cleveland. Competition rules Greater Cincinnati and Northern Kentucky is among the most competitive regions in the country, noted for relatively small differences between wholesale and retail gas prices, according to the Oil Price Information Service, a Wall, N.J., firm that tracks national oil and gas pricing. The company supplied the daily prices for regular unleaded gas used in The Enquirer’s analysis. Greater Cincinnati also has a relatively high concentration of gas stations competing, according to the U.S. Census Bureau. Cincinnati’s 92 gas stations per 100,000 households compares to 87 for Indianapolis, 86 for Kansas City, Mo., and 62 for Sacramento, Calif. – all cities of similar or slightly larger size. Add relative newcomer Kroger and its strategy of undercutting street pricing through its loyalty card program, and competition has become even more intense. “This is a penny business – we’re all just fighting over pennies,” says Stephen Hightower, president and chief executive officer of Franklin-based Hightowers Petroleum Co. His company supplies gas to hundreds of U.S. stations and is trying to buy more than 100 BP stations. “Unfortunately, it’s that marquee sign across the street that determines whether we’ll make a penny or five or lose two to three,” he says. Daily, station managers and owners decide whether to match price increases or decreases by competitors across the street, or to raise prices on their own – and maybe make more profit but lose all-important volume. The decisions can mean the difference between eking out a meager profit and losing money. Take this typical scenario: A station owner buys gas at $3.55 a gallon and sells it for $3.86, current wholesale and retail averages in Southwest Ohio. The dealer nets a gross profit of 31 cents a gallon, or $2,480 a week if he sells 8,000 gallons – a very busy store. But credit card companies are charging gas retailers 3 percent or more on total sales, meaning that $926 or more is knocked off the owner’s profit since the vast majority of purchases are made with plastic. That leaves about $1,500 before covering costs such as insurance, payroll, the mortgage and possible drive-off thefts. Replacing hose nozzles – a station might lose two a month to absent-minded drivers – will cost $600 each. Prices may be slightly different in Kentucky, but the effect is still the same: Station owners say they make more profit off a $1.49 cup of coffee than a full tank of gas. “The store will not pay for your overhead,” says Robert Lusby, who owns a Sunoco station on Buttermilk Pike just off Interstate The Enquirer/Jeff Swinger Ebony Johnson (left), 14, and her mother, Anissa Johnson of Westwood, pump gas into their van Friday at the Western Hills Kroger. 71/75 in Crescent Springs. “You can’t sell enough Twinkies and soda to make it – I lost $80,000 last year.” When asked why he’s still in the business, Lusby shoots back: “Want to buy it?” The cents are adding up for consumers as well: Americans spent nearly $100 million more on gas in June than in May, and $1 billion more on gas in June than during the same month five years ago. For consumers used to a decade of cheap energy in the 1990s, the price increases are nothing short of shocking. “Basically, I am working to buy gas at this point,” West Chester school teacher Kim Fowler says. She just put $80 worth of gas into her three-ton Toyota Sequoia in Florence for a trip to Atlanta. Fowler would love to “even pay $3 a gallon, even though I used to cringe at that.” Leaders and followers Retailers say they usually follow the leader when it comes to setting a daily price. Locally, that leader is Speedway, the Enquirer analysis shows. With at least 80 stores in the area, Speedway owns the highest market share – more than 20 percent of all gas sold in the region, market studies show. Every week during May and June, average area prices spiked on Wednesday, then slowly declined over the next few days before reaching a low on Tuesday. Wednesday’s spike was preceded every week by an increase in Speedway prices on Tuesday. Speedway prices then routinely fell slightly below the area average over the rest of the week. The chain owned by Houstonbased Marathon Oil sold regular, unleaded gas at an average $3.90 a gallon during May and June, falling right in the middle of average prices for all stations. “They are the market leader, and they compete using that advantage,” says Pat Gilligan, president of Hyde Park-based Gilligan Oil, which owns 43 stations in Cincinnati and Columbus. Marathon Oil’s Linda Casey says Speedway has “a high-quality fuel supply, and we can offer it at competitive prices.” She wouldn’t discuss Speedway’s local market position or specific pricing strategies, citing a lawsuit by the Kentucky attorney general over alleged price gouging after Hurricanes Katrina and Rita in fall 2005. Retail price also is influenced by the price a station pays for gas in the first place. A smaller fuel delivery costs more per gallon than a full delivery from an 8,700- major impact on the market. gallon tanker. In addition, franchisees can get Those guys will always push the price frontier. rebates from their parent gas “You’re going to see Kroger companies for volume sold – continue to be a leader in this armuch like incentives that car manufacturers give their dealers. ea and around the country.” Company officials wouldn’t disThat might make a station owner cuss pricing policies. willing to knock a penny or two But in a conference call with off his street price to drive more analysts last month, Kroger execsales. utives said that gas sales only Most consumers are aware that retail prices usually climb as broke even in January, February and March. soon as the price of crude oil “We price our fuel stations spikes, even if the gas in a stareally well on the street price. tion’s underground tanks was And, so, that drives some of the bought at a lower price. (grocery) business, too,” Kroger “I get a lot of flak for that, and it makes me mad because people chairman and CEO Dave Dillon said during the call. don’t understand,” says Steve Local distributor Hightower Harper, whose Florence-based sells gas to Kroger here and elseHarper Oil Co. runs eight convenience stores and supplies anoth- where. He says big-box stores are er 25 or so in Northern Kentucky. “some of the most sophisticated “I’ve got to do that to be able to buyers out there when it comes to gas, and they know how to get get the margin to afford the next the lowest prices.” load, which will be much more expensive. It’s not like I’ll make any profit in the long run – any re- Changing face of retail Fierce competition in difficult turns on raising the price go into times has caused many major oil the next load at a higher price.” companies to leave the retail busiThe Kroger effect ness and concentrate instead on Stations within a mile of Kromore lucrative exploration, exger gas pumps were about a pen- traction and refining operations. ny cheaper than those farther Last fall, the Ameristop conveaway during May and June, the nience store chain went out of Enquirer analysis shows. business. The name survived, Experts say grocers and other however, and many different ownnontraditional gas sellers are pull- ers now sell Shell gasoline under ing prices down everywhere, the Ameristop name. In Northern even selling below cost to lure Kentucky, 11 former Ameristops shoppers inside their stores. are now Road Ranger stores. Kroger began selling gas localShell left the retail business a ly about eight years ago at the few years ago, and England-based Mount Orab store. Now, Kroger BP is selling off its retail outlets. operates fuel centers at 28 of its “It’s hard for BP to manage a 77 stores in Greater Cincinnati station, say at the corner of Broad and Northern Kentucky. and Third in Columbus, from Kroger offers local customers London,” says Karen Dryer, execwho spend $100 a month inside utive vice president of the Ohio the stores the opportunity to pur- Petroleum Marketers Associachase a fill-up at a 10-cent-a-gallon tion. discount. Speedway, owned by Marathon Calvin Taylor of Anderson Oil, will soon be the region’s last Township buys his gas at Kroger remaining convenience-store on Beechmont Road. His main in- chain owned by an oil company. terest is in consolidating trips and More owners could mean a saving money. “I am willing to greater range in gas pricing localwait in line (at the pump), but I ly, although not necessarily lower do it when I buy my groceries,” prices, since owners already are he says. sometimes losing money. Grocers and big-box stores are Nobody is willing to guess slowly changing the retail gas inwhere the high prices might dustry, says Matt Lewis, econom- lead. ics professor at Ohio State Uni“I’ve been around this business versity. Still, he says, the shift is in one way or another for about nothing like the rapid makeover 38 years, and I’ve never seen anyof the market in the 1970s, when thing as serious as what we’re the Arab oil embargo put an emdealing with now,” says Harper, phasis on gas prices and led to in- the Northern Kentucky operator. novations such as self-service “We’ve got increased price for the pumps and convenience stores product, continually depressed selling gas. margins, higher credit card fees “You’re never going to have as and other expenses. many grocery stores as gas sta“If energy prices don’t start gotions to meet the demand,” says ing in the other direction, a lot of Lewis, who specializes in retail people are going to fall out of this gas prices. “But they are having a business.” GAS SECRETS REVIEW The Enquirer’s analysis of daily gas prices in May and June confirmed some old notions and revealed some surprises. AVERAGE PRICE BY DAY OF THE WEEK AVERAGE PRICE BY MAJOR BRAND VALUE OF NEARBY STATIONS 1 2 3 Kroger, Sam’s Club and Costco had the cheapest gas – as much as 10 cents a gallon less than traditional outlets. Store (Number surveyed) Costco (2) Sam’s Club (3) Kroger (28) Meijer (7) Mobil (93) Speedway (80) Regional Average Sunoco (61) BP (107) Marathon (134) Shell (82) $3.82 $3.84 $3.88 $3.89 $3.89 $3.90 $3.91 $3.91 $3.92 $3.92 $3.92 Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Sunday Tuesday was the cheapest day of the week to buy gas. Wednesday was the most expensive. Monday Tuesday Wednesday Thursday $3.911 $3.898 $3.890 $3.917 $3.909 Friday $3.915 Saturday $3.914 Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Gas was one cent a gallon less at stations with a competitor located within a mile. Prices are lower when stations have nearby rivals. $3.925 $3.920 $3.915 $3.910 $3.905 $3.900 -0.5 mile 1 mile 1.5 2 2.5 +2.5 miles miles miles miles DISTANCE FROM NEAREST COMPETITOR Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June 100 95 90 80 70 60 50 40 30 20 10 5 Product: ENQUIRER PubDate: 07-27-2008 Zone: Late Edition: 1 Page Name: A10.0 Time: 07-26-2008 20:58 User: bmullins Color: Cyan Black Yellow Magenta GAS PRICE SECRETS A10 SUNDAY, JULY 27, 2008 How neighborhoods compare How much you pay for gas often depends on where you live. On average, motorists pay more in inner-city neighborhoods and rural areas where fewer gas stations compete for your business. Motorists fueling up in Indian Hill and Verona paid some of the highest prices in May and June, while consumers in Union and Avondale paid some of the lowest. Average price by ZIP code May-June 2008 $3.81 - $3.87 $3.88 - $3.93 $3.94 - $4.00 $4.01 - $4.06 No stations 75 Butler Co. 74 Dearborn Co. Warren Co. Hamilton Co. Clermont Co. 275 275 Kenton Co. Boone Co. Southwest Ohio 45002 45005 45011 45013 45014 45015 45026 45030 45032 45036 45039 45040 45042 45044 45050 45053 45056 45065 45066 45067 45068 45069 45102 45103 45106 45120 45122 45140 45150 45152 45157 45160 45174 45176 45202 45203 45204 45205 45206 45207 45208 45209 45211 45212 45213 45214 45215 45216 45217 45219 45220 45223 45224 45225 45226 45227 45229 45230 Cleves Franklin Hamilton Hamilton Fairfield Hamilton Hamilton Harrison Harveysburg Lebanon Maineville Mason Middletown Middletown Monroe Okeana Oxford South Lebanon Springboro Trenton Waynesville West Chester Amelia Batavia Bethel Felicity Goshen Loveland Milford Morrow New Richmond Owensville Terrace Park Williamsburg Downtown West End Lower Price Hill Price Hill Walnut Hills Evanston Hyde Park Oakley Westwood Norwood Kennedy Heights Fairmount Wyoming Carthage Saint Bernard Corryville Clifton Northside College Hill Camp Washington East End Fairfax Avondale Mount Washington Campbell Co. 75 71 ZIP Code Includes* 71 Average Number Price of stations ZIP Code Includes* $3.94 $3.87 $3.86 $3.90 $3.88 $3.88 $3.88 $3.94 $3.96 $3.92 $3.89 $3.89 $3.90 $3.88 $3.90 $3.92 $3.89 $3.88 $3.87 $3.88 $3.95 $3.91 $3.89 $3.91 $3.96 $4.03 $3.90 $3.89 $3.88 $3.92 $3.94 $3.91 $3.95 $3.95 $3.94 $3.94 $3.90 $3.92 $3.92 $3.92 $3.93 $3.90 $3.91 $3.89 $3.91 $3.91 $3.90 $3.90 $3.90 $3.93 $4.03 $3.92 $3.91 $3.94 $3.92 $3.92 $3.85 $3.93 5 18 16 13 23 3 1 12 1 13 4 17 8 15 4 1 9 1 7 4 4 19 11 12 3 2 2 19 18 2 2 2 3 3 1 3 2 4 3 2 4 6 10 10 6 3 8 7 4 2 1 5 5 5 4 7 5 8 45231 Mount Healthy 45232 Saint Bernard 45233 Delhi Township 45236 Blue Ash 45237 Bond Hill 45238 Covedale 45239 White Oak 45240 Forest Park 45241 Sharonville 45242 Montgomery 45243 Indian Hill 45244 Mariemont 45245 Newtown 45246 Glendale 45247 Colerain Township 45248 Westwood 45249 Symmes Township 45251 Colerain Township 45255 Anderson Township Southwest Ohio total Northern Kentucky ZIP Code Includes* 41001 Alexandria 41005 Burlington 41007 California 41011 Covington 41015 Latonia 41016 Covington 41017 Fort Mitchell 41018 Erlanger 41042 Florence 41048 Hebron 41051 Independence 41059 Melbourne 41071 Newport 41073 Bellevue 41074 Dayton 41075 Fort Thomas 41076 Newport 41091 Union 41092 Verona 41094 Walton Northern Kentucky total Southeastern Indiana ZIP Code Includes* 47001 Aurora 47018 Dillsboro 47022 Guilford 47025 Lawrenceburg 47032 Moores Hill 47060 West Harrison Southeastern Indiana total Regional total Average Number Price of stations $3.90 $3.91 $3.95 $3.92 $3.91 $3.91 $3.92 $3.87 $3.91 $3.92 $4.05 $3.91 $3.90 $3.89 $3.92 $3.91 $3.89 $3.94 $3.91 $3.90 20 1 4 11 5 14 8 9 15 11 2 15 9 10 8 7 7 6 7 561 Average Number Price of stations $3.90 $3.95 $3.92 $3.92 $3.90 $3.96 $3.94 $3.93 $3.91 $3.92 $3.92 $3.91 $3.91 $3.90 $3.89 $3.96 $3.89 $3.81 $4.06 $3.92 $3.91 10 2 2 12 6 1 13 12 27 5 4 1 4 3 1 3 11 3 2 8 130 Average Number Price of stations $3.96 $3.97 $4.01 $3.95 $3.97 $3.95 $3.96 $3.91 7 2 1 11 1 3 25 716 *ZIP codes often contain multiple neighborhoods, and neighborhoods often cross several ZIP codes. These representative neighborhoods are listed simply to help readers locate the ZIP code. Source: Enquirer analysis of data from the Oil Price Information Service. Analysis based on sales of regular, unleaded gas at 716 stations in SW Ohio, N. Kentucky and SE Indiana. The Enquirer/Gregory Korte, Randy Mazzola About this report: 716 stations, 61 days T o unlock the secrets of retail gas prices, The Enquirer analyzed a database of daily gas prices reported by 716 stations in Greater Cincinnati, Northern Kentucky and Southeastern Indiana. Data were reported over 61 days in May and June – a time period that saw a 50-cent climb in average gas prices. In all, 31,439 price points were analyzed. The data came courtesy of the Oil Price Information Service, a Wall, N.J., provider of pricing data. It’s the same source used by many gasoline retailers to monitor the competition and set their own prices. All prices in this report are for a gallon of regular unleaded gas. Not all participating stations reported prices for all days; the typical station reported data for 44 of the 61 days. In some cases, The Enquirer omitted stations from the analysis when the small number of reporting dates would have skewed their average cost. Other sources of data included interstate ramp maps supplied by the Ohio-Kentucky-Indiana Regional Council of Governments and ZIP-code areas from the U.S. Census Bureau. Data supplied by the Oil Price Information Service differs from numbers provided by Gasbuddy.com, which supplies retail gas prices to many media outlets including The Enquirer’s Web site, Cincinnati.Com. Gasbuddy data come from prices reported by motorists, who share prices they see with others in an online forum. It’s free (as opposed to the subscription-based OPIS data) and available in real time. The data used for this report, on the other hand, are more comprehensive – about 80 percent of the region’s stations participate. It’s also more reliable because prices come directly from creditcard charges for the actual cost paid. — Gregory Korte and James Pilcher REVEALED THE ENQUIRER Gas: Stations in price dogfight From Page A1 m Speedway has emerged as the region’s market leader. It routinely uses its competitive power to set pricing, and other stations follow. m Increasing numbers of fueling stations at Kroger, Costco, Sam’s Club and other large operators are making gas sales more competitive, with lower-than-average prices. m Most oil companies are exiting the difficult retail gas business. That’s increased the number of smaller gas station owners who can influence street pricing up or down. The cost of crude oil, refining expenses, taxes and marketing all are driving the price of gas. But most of the profits have long been pocketed by the oil companies and refineries that pulled crude out of the ground, shipped it and made it into gas. What’s left of your gas dollar is open to cutthroat competition. “Once the product leaves the refinery gate, it’s every man for himself,” says James Patneau Jr., chairman of the Ohio Petroleum Marketers and Convenience Store Association, who runs four stations and delivers gas to 30 or so others around Cleveland. Competition rules Greater Cincinnati and Northern Kentucky is among the most competitive regions in the country, noted for relatively small differences between wholesale and retail gas prices, according to the Oil Price Information Service, a Wall, N.J., firm that tracks national oil and gas pricing. The company supplied the daily prices for regular unleaded gas used in The Enquirer’s analysis. Greater Cincinnati also has a relatively high concentration of gas stations competing, according to the U.S. Census Bureau. Cincinnati’s 92 gas stations per 100,000 households compares to 87 for Indianapolis, 86 for Kansas City, Mo., and 62 for Sacramento, Calif. – all cities of similar or slightly larger size. Add relative newcomer Kroger and its strategy of undercutting street pricing through its loyalty card program, and competition has become even more intense. “This is a penny business – we’re all just fighting over pennies,” says Stephen Hightower, president and chief executive officer of Franklin-based Hightowers Petroleum Co. His company supplies gas to hundreds of U.S. stations and is trying to buy more than 100 BP stations. “Unfortunately, it’s that marquee sign across the street that determines whether we’ll make a penny or five or lose two to three,” he says. Daily, station managers and owners decide whether to match price increases or decreases by competitors across the street, or to raise prices on their own – and maybe make more profit but lose all-important volume. The decisions can mean the difference between eking out a meager profit and losing money. Take this typical scenario: A station owner buys gas at $3.55 a gallon and sells it for $3.86, current wholesale and retail averages in Southwest Ohio. The dealer nets a gross profit of 31 cents a gallon, or $2,480 a week if he sells 8,000 gallons – a very busy store. But credit card companies are charging gas retailers 3 percent or more on total sales, meaning that $926 or more is knocked off the owner’s profit since the vast majority of purchases are made with plastic. That leaves about $1,500 before covering costs such as insurance, payroll, the mortgage and possible drive-off thefts. Replacing hose nozzles – a station might lose two a month to absent-minded drivers – will cost $600 each. Prices may be slightly different in Kentucky, but the effect is still the same: Station owners say they make more profit off a $1.49 cup of coffee than a full tank of gas. “The store will not pay for your overhead,” says Robert Lusby, who owns a Sunoco station on Buttermilk Pike just off Interstate The Enquirer/Jeff Swinger Ebony Johnson (left), 14, and her mother, Anissa Johnson of Westwood, pump gas into their van Friday at the Western Hills Kroger. 71/75 in Crescent Springs. “You can’t sell enough Twinkies and soda to make it – I lost $80,000 last year.” When asked why he’s still in the business, Lusby shoots back: “Want to buy it?” The cents are adding up for consumers as well: Americans spent nearly $100 million more on gas in June than in May, and $1 billion more on gas in June than during the same month five years ago. For consumers used to a decade of cheap energy in the 1990s, the price increases are nothing short of shocking. “Basically, I am working to buy gas at this point,” West Chester school teacher Kim Fowler says. She just put $80 worth of gas into her three-ton Toyota Sequoia in Florence for a trip to Atlanta. Fowler would love to “even pay $3 a gallon, even though I used to cringe at that.” Leaders and followers Retailers say they usually follow the leader when it comes to setting a daily price. Locally, that leader is Speedway, the Enquirer analysis shows. With at least 80 stores in the area, Speedway owns the highest market share – more than 20 percent of all gas sold in the region, market studies show. Every week during May and June, average area prices spiked on Wednesday, then slowly declined over the next few days before reaching a low on Tuesday. Wednesday’s spike was preceded every week by an increase in Speedway prices on Tuesday. Speedway prices then routinely fell slightly below the area average over the rest of the week. The chain owned by Houstonbased Marathon Oil sold regular, unleaded gas at an average $3.90 a gallon during May and June, falling right in the middle of average prices for all stations. “They are the market leader, and they compete using that advantage,” says Pat Gilligan, president of Hyde Park-based Gilligan Oil, which owns 43 stations in Cincinnati and Columbus. Marathon Oil’s Linda Casey says Speedway has “a high-quality fuel supply, and we can offer it at competitive prices.” She wouldn’t discuss Speedway’s local market position or specific pricing strategies, citing a lawsuit by the Kentucky attorney general over alleged price gouging after Hurricanes Katrina and Rita in fall 2005. Retail price also is influenced by the price a station pays for gas in the first place. A smaller fuel delivery costs more per gallon than a full delivery from an 8,700- major impact on the market. gallon tanker. In addition, franchisees can get Those guys will always push the price frontier. rebates from their parent gas “You’re going to see Kroger companies for volume sold – continue to be a leader in this armuch like incentives that car manufacturers give their dealers. ea and around the country.” Company officials wouldn’t disThat might make a station owner cuss pricing policies. willing to knock a penny or two But in a conference call with off his street price to drive more analysts last month, Kroger execsales. utives said that gas sales only Most consumers are aware that retail prices usually climb as broke even in January, February and March. soon as the price of crude oil “We price our fuel stations spikes, even if the gas in a stareally well on the street price. tion’s underground tanks was And, so, that drives some of the bought at a lower price. (grocery) business, too,” Kroger “I get a lot of flak for that, and it makes me mad because people chairman and CEO Dave Dillon said during the call. don’t understand,” says Steve Local distributor Hightower Harper, whose Florence-based sells gas to Kroger here and elseHarper Oil Co. runs eight convenience stores and supplies anoth- where. He says big-box stores are er 25 or so in Northern Kentucky. “some of the most sophisticated “I’ve got to do that to be able to buyers out there when it comes to gas, and they know how to get get the margin to afford the next the lowest prices.” load, which will be much more expensive. It’s not like I’ll make any profit in the long run – any re- Changing face of retail Fierce competition in difficult turns on raising the price go into times has caused many major oil the next load at a higher price.” companies to leave the retail busiThe Kroger effect ness and concentrate instead on Stations within a mile of Kromore lucrative exploration, exger gas pumps were about a pen- traction and refining operations. ny cheaper than those farther Last fall, the Ameristop conveaway during May and June, the nience store chain went out of Enquirer analysis shows. business. The name survived, Experts say grocers and other however, and many different ownnontraditional gas sellers are pull- ers now sell Shell gasoline under ing prices down everywhere, the Ameristop name. In Northern even selling below cost to lure Kentucky, 11 former Ameristops shoppers inside their stores. are now Road Ranger stores. Kroger began selling gas localShell left the retail business a ly about eight years ago at the few years ago, and England-based Mount Orab store. Now, Kroger BP is selling off its retail outlets. operates fuel centers at 28 of its “It’s hard for BP to manage a 77 stores in Greater Cincinnati station, say at the corner of Broad and Northern Kentucky. and Third in Columbus, from Kroger offers local customers London,” says Karen Dryer, execwho spend $100 a month inside utive vice president of the Ohio the stores the opportunity to pur- Petroleum Marketers Associachase a fill-up at a 10-cent-a-gallon tion. discount. Speedway, owned by Marathon Calvin Taylor of Anderson Oil, will soon be the region’s last Township buys his gas at Kroger remaining convenience-store on Beechmont Road. His main in- chain owned by an oil company. terest is in consolidating trips and More owners could mean a saving money. “I am willing to greater range in gas pricing localwait in line (at the pump), but I ly, although not necessarily lower do it when I buy my groceries,” prices, since owners already are he says. sometimes losing money. Grocers and big-box stores are Nobody is willing to guess slowly changing the retail gas inwhere the high prices might dustry, says Matt Lewis, econom- lead. ics professor at Ohio State Uni“I’ve been around this business versity. Still, he says, the shift is in one way or another for about nothing like the rapid makeover 38 years, and I’ve never seen anyof the market in the 1970s, when thing as serious as what we’re the Arab oil embargo put an emdealing with now,” says Harper, phasis on gas prices and led to in- the Northern Kentucky operator. novations such as self-service “We’ve got increased price for the pumps and convenience stores product, continually depressed selling gas. margins, higher credit card fees “You’re never going to have as and other expenses. many grocery stores as gas sta“If energy prices don’t start gotions to meet the demand,” says ing in the other direction, a lot of Lewis, who specializes in retail people are going to fall out of this gas prices. “But they are having a business.” GAS SECRETS REVIEW The Enquirer’s analysis of daily gas prices in May and June confirmed some old notions and revealed some surprises. AVERAGE PRICE BY DAY OF THE WEEK AVERAGE PRICE BY MAJOR BRAND VALUE OF NEARBY STATIONS 1 2 3 Kroger, Sam’s Club and Costco had the cheapest gas – as much as 10 cents a gallon less than traditional outlets. Store (Number surveyed) Costco (2) Sam’s Club (3) Kroger (28) Meijer (7) Mobil (93) Speedway (80) Regional Average Sunoco (61) BP (107) Marathon (134) Shell (82) $3.82 $3.84 $3.88 $3.89 $3.89 $3.90 $3.91 $3.91 $3.92 $3.92 $3.92 Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Sunday Tuesday was the cheapest day of the week to buy gas. Wednesday was the most expensive. Monday Tuesday Wednesday Thursday $3.911 $3.898 $3.890 $3.917 $3.909 Friday $3.915 Saturday $3.914 Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Gas was one cent a gallon less at stations with a competitor located within a mile. Prices are lower when stations have nearby rivals. $3.925 $3.920 $3.915 $3.910 $3.905 $3.900 -0.5 mile 1 mile 1.5 2 2.5 +2.5 miles miles miles miles DISTANCE FROM NEAREST COMPETITOR Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June 100 95 90 80 70 60 50 40 30 20 10 5 Product: ENQUIRER PubDate: 07-27-2008 Zone: Late Edition: 1 Page Name: A11.0 Time: 07-26-2008 20:57 User: bmullins Color: Cyan Black Yellow Magenta GAS PRICE SECRETS THE ENQUIRER REVEALED SUNDAY, JULY 27, 2008 A11 Q&A A trip to save doesn’t make sense By Gregory Korte gkorte@enquirer.com Some drivers would rather pay for convenience of a nearby station How far out of your way would you go to save a couple of cents on a gallon of gas? Before answering, consider this: At $4 a gallon, a typical driver burns 16 cents in gas every mile. A gas station a mile away – two miles round trip – would have to save 2 cents a gallon just to break even. That’s assuming your car gets 25 miles per gallon in the city (the national average) and has a 15-gallon gas tank. The greater the mileage and the bigger the tank, the more you can afford to shop around. It rarely makes sense to drive more than a block or two to save money. That’s why gas stations without competition nearby can charge a few cents more. Even when it makes economic sense, some studies show that drivers would rather pay for the convenience of a nearby station. A Biddle survey conducted in January for the National Association of Convenience Stores found that: m Gas prices would have to be 3 cents less to convince most drivers to bypass a station on the right and cross heavy traffic to shop at a cheaper station on the left. m It would take a 5-cent difference for most drivers to drive five minutes out of their way. m It would take a 10-cent difference to get most drivers to drive 10 minutes out of their way. “Because I purchase a lot of gas, it is not worth my while to drive extra or cross two to three lanes for a few cents off,” said Charles Biddle of Louisville, while filling up at a station off Interstate 75 as part of his weekly commute to get treatment for his son at Cincinnati Children’s Hospital Med- ical Center. Of course, most drivers don’t have to go out of their way to pass by competing gas stations. Some roads – Dixie Highway (both in Ohio and Kentucky), Montgomery Road, Hamilton Avenue, Alexandria Pike, Reading Road and Colerain Avenue – have more than a dozen stations each. In those cases, some planning can save money. Online tools like The Enquirer’s CinciNavigator.com can help identify prices at gas stations along your route before you leave. During May and June, the station with the highest average price charged 37 cents a gallon more than the station with the lowest average price. Here’s what the owners say: From $4.06 … to $3.69 THE HIGHEST STATION THE LOWEST STATION Question: Why does Kroger discount its gas10 cents a gallon if you spend $100 in the store in a month, but knocks 20 cents off after you spend $50 in other cities? Answer: Kroger acknowledges that its discounts are different in different markets, but says it must adjust for differing competition. The example you cite is offered in the Toledo/ Bowling Green area to compete with a similar discount offered by Giant Eagle grocery. Q: Can gas credit cards save you money? A: In some cases, yes. BP, for example, offers new credit customers 10 percent rebates per gallon for the first six months – which equates into nearly 40 cents a gallon. The rebate can be redeemed for cash, other merchandise or donated to charity. But customers first must accumulate $25 in rebates to redeem. Q: I’ve heard that it’s not good to buy gas immediately after a supply tanker has serviced a station. Is this true? A:You’re referring to the notion that the delivery of new fuel stirs up sediment in a station’s underground tanks, contaminating gas that could harm your engine. The risk is minimal, especially for newer model cars, which have advanced fuel filters. A change in federal regulations forced all stations to upgrade their underground tanks several years ago. In addition, all tanks and gas pumps have filters that should weed out any sediment or foreign material. Q: Is there a better time of day to buy gas? A: This is more of an issue during the summer, because gas evaporates more quickly when it is warmer. But a station’s tanks are underground and cooler, so evaporation is usually held to a minimum. It is a much bigger issue in the South, where temperatures are much higher. Still, experts say morning is the best time to fuel up to ensure you get what you pay for. — James Pilcher Have a question? Email James Pilcher at jpilcher@enquirer.com The Enquirer/Amie Dworecki Alex Othman, owner of the Mobil station at Mineola Pike and Interstate 275, says he makes more money on a cup of coffee than he does on a gallon of gas. Jack Hunt of Union, who recently switched to driving his car instead of his truck to save more than $100 a week in gas, pumps gas at Union Food Mart, a BP station that had the lowest average gas prices for May and June. By James Pilcher By James Pilcher The Enquirer/Jeff Swinger Despite the beefs, Store owner uses he won’t take loss fuel as loss leader jpilcher@enquirer.com ERLANGER – Alex Othman looks at the receipt for 8,000 gallons of gas he recently purchased and sighs. His Mobil station by the Mineola Pike exit off Interstate 275 charged the highest average price among 716 stations surveyed in May and June – $4.06 per gallon for regular unleaded gas. The reason: Othman refuses to sell gas at a loss as some other stations do. “I actually hope some days that I come in the morning and the gas is gone and I don’t have to worry about it,” Othman said. “So many people complain, and there is so much headache.” His station is the only one at the Mineola Pike exit and one of only two at the two interstate exits nearest Cincinnati/Northern Kentucky International Airport. The location nets him considerable traffic from drivers topping off the tanks of rental cars before returning them at the airport. Still, Othman says he earns just 1 to 2 percent of his profit on gas, even though fuel accounts for 75 percent of his store’s sales. On this day, he’s selling regular unleaded for $4.29 a gallon. He says that will earn him about 2 to 3 cents per gallon in gross profit after credit card fees and the cost of the fuel – or about $112 a day. jpilcher@enquirer.com UNION – Just call Ram Chinthala the anti-Kroger, a guy trying to beat the grocery store giant at its own game. Like his much larger counterpart 1½ miles away, Chinthala’s Union Food Mart sells BP gas well below the regional average. Often, he sells gas for less than he paid for it. Chinthala’s station charged an average $3.69 a gallon for regular unleaded gas in May and June – lowest among 716 local gas outlets surveyed that reported prices for at least 30 days. “I always lose money on gas, but it’s all about competition, and I need to get people in here to make any money,” Chinthala said. Chinthala and his brother Raghu bought the station 3½ years ago. Despite losses on gas, Chinthala says his station is profitable, with a full-service deli and soft-serve ice cream machine. His strategy: Lose money on gas but sell convenience and earn profits from other items in his store. “I get a lot of customers just looking for a loaf of bread or some milk, and who wants to walk across a big parking lot or wait in line at a grocery store?” he said. But on this day, the strategy wasn’t quite working. The nearby Kroger, Speedway and United Dairy Farmers all were selling gas for 10 cents less than he was. In the old days, stations didn’t have to advertise By James Pilcher jpilcher@enquirer.com Gas is the only major commodity that shouts daily prices from towering outdoor signs. But it wasn’t always that way. It took the 1973 Arab oil embargo and the nation’s first experience with a big spike in oil prices to make Americans demand the kind of signs that endure today. Earlier gas signs were large but simply promised that motorists would “Save!” by buying a particular brand, says Michael Karl Witzel, author of “The American Gas Station.” The Austin, Texas resident recalls that Lady Bird Johnson even under- took a beautification campaign in the 1960s to rid roadsides of the gas signs she saw as unsightly. Back then, gas companies used slogans such as Exxon’s “Tiger in your tank” and giveaways of dinnerware, glassware and silverware to lure customers. Women were courted with green stamps that were redeemable for other merchandise. It all fit a model that stressed full service over speed and convenience. “They didn’t have to advertise on price before that because oil prices were stable and they bought gas on a long-term contract,” says Lisa Margonelli, a fellow with the New America Foundation, a Washington think tank, and author of “Oil on the Brain.” “My grandma’s gas station owner was like the family doctor – he knew everything about us and about our car.” But then the embargo hit, drivers began comparing costs and station owners started displaying hand-painted signs with prices. As price drove sales, self-service pumps and convenience stores got their start – and the signs became bigger and more official. “Now, the stations and convenience stores are all just boxy and Enquirer file can be changed from one brand to another in case of a buyout over- The first gasoline “filling station” in Ohio, and possibly the first in night, by just changing the signs,” the industry, was set up in a garage at Young and Oak streets in Columbus in 1921. Margonelli said. What you can do You can stretch your gas mileage by driving wisely: m Have your car tuned regularly. An engine tune-up can improve car fuel economy by an average of 1 mile per gallon. m Keep your tires properly inflated. Underinflated tires can decrease fuel economy by up to 1 mile per gallon. m Slow down. The faster you drive, the more gasoline your car uses. Driving at 65 mph rather than 55 mph reduces fuel economy by about 2 miles per gallon. m Avoid jackrabbit starts. Abrupt starts require about twice as much gasoline as gradual starts. m Pace your driving. Unnecessary speedups, slowdowns and stops can decrease fuel economy by up to 2 miles per gallon. m Use your air conditioner sparingly. The use of air conditioning can reduce fuel economy by as much as 2 miles per gallon. m Avoid engine idling. Turn your engine off when you are delayed for more than a couple of minutes. m Plan your trips carefully. Avoid traveling during rush hours if possible to reduce fuel-consumption patterns such as starting and stopping and numerous idling periods. m Consider joining a car pool. — American Petroleum Institute ONLINE Cincinnati.Com, search: gas m Find cheapest gas in your area at CinciNavigator. m Use calculators to figure costs. m Join the discussion. m Video: Your questions. GAS SECRETS REVIEW These findings were published all last week in The Enquirer and online at Cincinnati.Com. AVG.DAILY DIFFERENCEWITHIN BRANDS INTERSTATE EFFECT CHEAPER GAS: OHIO OR KENTUCKY? 4 5 6 Brand Avg. diff. Prices varied daily by 11 cents to 38 cents a gallon within major brands. BP Marathon Shell Mobil Sunoco Kroger Speedway Unbranded Exxon Meijer Thorntons Swifty Food Mart .38 .29 .25 .25 .24 .21 .20 .15 .12 .11 .11 .11 Avg. Low Avg. High $3.74 $3.77 $3.80 $3.78 $3.80 $3.75 $3.77 $3.82 $3.84 $3.82 $3.82 $3.80 $4.12 $4.06 $4.05 $4.03 $4.04 $3.96 $3.97 $3.97 $3.96 $3.93 $3.93 $3.91 Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Prices are higher when stations are close to major highways. Gas was an average 11⁄2 cents a gallon more at stations near interstate exits. $3.92 $3.90 $3.88 $3.86 $3.84 Less than 1 to 2 2 to 3 1 mile miles miles 3 to 4 More than miles 4 miles DISTANCE FROM INTERSTATE Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Motorists pay more – sometimes much more – for gas in Northern Kentucky than in Ohio. $4.3 $4.2 $4.1 $4.0 $3.9 $3.8 $3.7 $3.6 $3.5 $3.4 $3.3 Avg. SW Ohio Avg. Northern Kentucky July 10: $4.24 July 10: $4.02 MAY 2008 JUNE 2008 JULY Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June 100 95 90 80 70 60 50 40 30 20 10 5 Product: ENQUIRER PubDate: 07-27-2008 Zone: Late Edition: 1 Page Name: A11.0 Time: 07-26-2008 20:57 User: bmullins Color: Cyan Black Yellow Magenta GAS PRICE SECRETS THE ENQUIRER REVEALED SUNDAY, JULY 27, 2008 A11 Q&A A trip to save doesn’t make sense By Gregory Korte gkorte@enquirer.com Some drivers would rather pay for convenience of a nearby station How far out of your way would you go to save a couple of cents on a gallon of gas? Before answering, consider this: At $4 a gallon, a typical driver burns 16 cents in gas every mile. A gas station a mile away – two miles round trip – would have to save 2 cents a gallon just to break even. That’s assuming your car gets 25 miles per gallon in the city (the national average) and has a 15-gallon gas tank. The greater the mileage and the bigger the tank, the more you can afford to shop around. It rarely makes sense to drive more than a block or two to save money. That’s why gas stations without competition nearby can charge a few cents more. Even when it makes economic sense, some studies show that drivers would rather pay for the convenience of a nearby station. A Biddle survey conducted in January for the National Association of Convenience Stores found that: m Gas prices would have to be 3 cents less to convince most drivers to bypass a station on the right and cross heavy traffic to shop at a cheaper station on the left. m It would take a 5-cent difference for most drivers to drive five minutes out of their way. m It would take a 10-cent difference to get most drivers to drive 10 minutes out of their way. “Because I purchase a lot of gas, it is not worth my while to drive extra or cross two to three lanes for a few cents off,” said Charles Biddle of Louisville, while filling up at a station off Interstate 75 as part of his weekly commute to get treatment for his son at Cincinnati Children’s Hospital Med- ical Center. Of course, most drivers don’t have to go out of their way to pass by competing gas stations. Some roads – Dixie Highway (both in Ohio and Kentucky), Montgomery Road, Hamilton Avenue, Alexandria Pike, Reading Road and Colerain Avenue – have more than a dozen stations each. In those cases, some planning can save money. Online tools like The Enquirer’s CinciNavigator.com can help identify prices at gas stations along your route before you leave. During May and June, the station with the highest average price charged 37 cents a gallon more than the station with the lowest average price. Here’s what the owners say: From $4.06 … to $3.69 THE HIGHEST STATION THE LOWEST STATION Question: Why does Kroger discount its gas10 cents a gallon if you spend $100 in the store in a month, but knocks 20 cents off after you spend $50 in other cities? Answer: Kroger acknowledges that its discounts are different in different markets, but says it must adjust for differing competition. The example you cite is offered in the Toledo/ Bowling Green area to compete with a similar discount offered by Giant Eagle grocery. Q: Can gas credit cards save you money? A: In some cases, yes. BP, for example, offers new credit customers 10 percent rebates per gallon for the first six months – which equates into nearly 40 cents a gallon. The rebate can be redeemed for cash, other merchandise or donated to charity. But customers first must accumulate $25 in rebates to redeem. Q: I’ve heard that it’s not good to buy gas immediately after a supply tanker has serviced a station. Is this true? A:You’re referring to the notion that the delivery of new fuel stirs up sediment in a station’s underground tanks, contaminating gas that could harm your engine. The risk is minimal, especially for newer model cars, which have advanced fuel filters. A change in federal regulations forced all stations to upgrade their underground tanks several years ago. In addition, all tanks and gas pumps have filters that should weed out any sediment or foreign material. Q: Is there a better time of day to buy gas? A: This is more of an issue during the summer, because gas evaporates more quickly when it is warmer. But a station’s tanks are underground and cooler, so evaporation is usually held to a minimum. It is a much bigger issue in the South, where temperatures are much higher. Still, experts say morning is the best time to fuel up to ensure you get what you pay for. — James Pilcher Have a question? Email James Pilcher at jpilcher@enquirer.com The Enquirer/Amie Dworecki Alex Othman, owner of the Mobil station at Mineola Pike and Interstate 275, says he makes more money on a cup of coffee than he does on a gallon of gas. Jack Hunt of Union, who recently switched to driving his car instead of his truck to save more than $100 a week in gas, pumps gas at Union Food Mart, a BP station that had the lowest average gas prices for May and June. By James Pilcher By James Pilcher The Enquirer/Jeff Swinger Despite the beefs, Store owner uses he won’t take loss fuel as loss leader jpilcher@enquirer.com ERLANGER – Alex Othman looks at the receipt for 8,000 gallons of gas he recently purchased and sighs. His Mobil station by the Mineola Pike exit off Interstate 275 charged the highest average price among 716 stations surveyed in May and June – $4.06 per gallon for regular unleaded gas. The reason: Othman refuses to sell gas at a loss as some other stations do. “I actually hope some days that I come in the morning and the gas is gone and I don’t have to worry about it,” Othman said. “So many people complain, and there is so much headache.” His station is the only one at the Mineola Pike exit and one of only two at the two interstate exits nearest Cincinnati/Northern Kentucky International Airport. The location nets him considerable traffic from drivers topping off the tanks of rental cars before returning them at the airport. Still, Othman says he earns just 1 to 2 percent of his profit on gas, even though fuel accounts for 75 percent of his store’s sales. On this day, he’s selling regular unleaded for $4.29 a gallon. He says that will earn him about 2 to 3 cents per gallon in gross profit after credit card fees and the cost of the fuel – or about $112 a day. jpilcher@enquirer.com UNION – Just call Ram Chinthala the anti-Kroger, a guy trying to beat the grocery store giant at its own game. Like his much larger counterpart 1½ miles away, Chinthala’s Union Food Mart sells BP gas well below the regional average. Often, he sells gas for less than he paid for it. Chinthala’s station charged an average $3.69 a gallon for regular unleaded gas in May and June – lowest among 716 local gas outlets surveyed that reported prices for at least 30 days. “I always lose money on gas, but it’s all about competition, and I need to get people in here to make any money,” Chinthala said. Chinthala and his brother Raghu bought the station 3½ years ago. Despite losses on gas, Chinthala says his station is profitable, with a full-service deli and soft-serve ice cream machine. His strategy: Lose money on gas but sell convenience and earn profits from other items in his store. “I get a lot of customers just looking for a loaf of bread or some milk, and who wants to walk across a big parking lot or wait in line at a grocery store?” he said. But on this day, the strategy wasn’t quite working. The nearby Kroger, Speedway and United Dairy Farmers all were selling gas for 10 cents less than he was. In the old days, stations didn’t have to advertise By James Pilcher jpilcher@enquirer.com Gas is the only major commodity that shouts daily prices from towering outdoor signs. But it wasn’t always that way. It took the 1973 Arab oil embargo and the nation’s first experience with a big spike in oil prices to make Americans demand the kind of signs that endure today. Earlier gas signs were large but simply promised that motorists would “Save!” by buying a particular brand, says Michael Karl Witzel, author of “The American Gas Station.” The Austin, Texas resident recalls that Lady Bird Johnson even under- took a beautification campaign in the 1960s to rid roadsides of the gas signs she saw as unsightly. Back then, gas companies used slogans such as Exxon’s “Tiger in your tank” and giveaways of dinnerware, glassware and silverware to lure customers. Women were courted with green stamps that were redeemable for other merchandise. It all fit a model that stressed full service over speed and convenience. “They didn’t have to advertise on price before that because oil prices were stable and they bought gas on a long-term contract,” says Lisa Margonelli, a fellow with the New America Foundation, a Washington think tank, and author of “Oil on the Brain.” “My grandma’s gas station owner was like the family doctor – he knew everything about us and about our car.” But then the embargo hit, drivers began comparing costs and station owners started displaying hand-painted signs with prices. As price drove sales, self-service pumps and convenience stores got their start – and the signs became bigger and more official. “Now, the stations and convenience stores are all just boxy and Enquirer file can be changed from one brand to another in case of a buyout over- The first gasoline “filling station” in Ohio, and possibly the first in night, by just changing the signs,” the industry, was set up in a garage at Young and Oak streets in Columbus in 1921. Margonelli said. What you can do You can stretch your gas mileage by driving wisely: m Have your car tuned regularly. An engine tune-up can improve car fuel economy by an average of 1 mile per gallon. m Keep your tires properly inflated. Underinflated tires can decrease fuel economy by up to 1 mile per gallon. m Slow down. The faster you drive, the more gasoline your car uses. Driving at 65 mph rather than 55 mph reduces fuel economy by about 2 miles per gallon. m Avoid jackrabbit starts. Abrupt starts require about twice as much gasoline as gradual starts. m Pace your driving. Unnecessary speedups, slowdowns and stops can decrease fuel economy by up to 2 miles per gallon. m Use your air conditioner sparingly. The use of air conditioning can reduce fuel economy by as much as 2 miles per gallon. m Avoid engine idling. Turn your engine off when you are delayed for more than a couple of minutes. m Plan your trips carefully. Avoid traveling during rush hours if possible to reduce fuel-consumption patterns such as starting and stopping and numerous idling periods. m Consider joining a car pool. — American Petroleum Institute ONLINE Cincinnati.Com, search: gas m Find cheapest gas in your area at CinciNavigator. m Use calculators to figure costs. m Join the discussion. m Video: Your questions. GAS SECRETS REVIEW These findings were published all last week in The Enquirer and online at Cincinnati.Com. AVG.DAILY DIFFERENCEWITHIN BRANDS INTERSTATE EFFECT CHEAPER GAS: OHIO OR KENTUCKY? 4 5 6 Brand Avg. diff. Prices varied daily by 11 cents to 38 cents a gallon within major brands. BP Marathon Shell Mobil Sunoco Kroger Speedway Unbranded Exxon Meijer Thorntons Swifty Food Mart .38 .29 .25 .25 .24 .21 .20 .15 .12 .11 .11 .11 Avg. Low Avg. High $3.74 $3.77 $3.80 $3.78 $3.80 $3.75 $3.77 $3.82 $3.84 $3.82 $3.82 $3.80 $4.12 $4.06 $4.05 $4.03 $4.04 $3.96 $3.97 $3.97 $3.96 $3.93 $3.93 $3.91 Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Prices are higher when stations are close to major highways. Gas was an average 11⁄2 cents a gallon more at stations near interstate exits. $3.92 $3.90 $3.88 $3.86 $3.84 Less than 1 to 2 2 to 3 1 mile miles miles 3 to 4 More than miles 4 miles DISTANCE FROM INTERSTATE Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Motorists pay more – sometimes much more – for gas in Northern Kentucky than in Ohio. $4.3 $4.2 $4.1 $4.0 $3.9 $3.8 $3.7 $3.6 $3.5 $3.4 $3.3 Avg. SW Ohio Avg. Northern Kentucky July 10: $4.24 July 10: $4.02 MAY 2008 JUNE 2008 JULY Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June 100 95 90 80 70 60 50 40 30 20 10 5 Product: ENQUIRER PubDate: 07-27-2008 Zone: Late Edition: 1 Page Name: A11.0 Time: 07-26-2008 20:57 User: bmullins Color: Cyan Black Yellow Magenta GAS PRICE SECRETS THE ENQUIRER REVEALED SUNDAY, JULY 27, 2008 A11 Q&A A trip to save doesn’t make sense By Gregory Korte gkorte@enquirer.com Some drivers would rather pay for convenience of a nearby station How far out of your way would you go to save a couple of cents on a gallon of gas? Before answering, consider this: At $4 a gallon, a typical driver burns 16 cents in gas every mile. A gas station a mile away – two miles round trip – would have to save 2 cents a gallon just to break even. That’s assuming your car gets 25 miles per gallon in the city (the national average) and has a 15-gallon gas tank. The greater the mileage and the bigger the tank, the more you can afford to shop around. It rarely makes sense to drive more than a block or two to save money. That’s why gas stations without competition nearby can charge a few cents more. Even when it makes economic sense, some studies show that drivers would rather pay for the convenience of a nearby station. A Biddle survey conducted in January for the National Association of Convenience Stores found that: m Gas prices would have to be 3 cents less to convince most drivers to bypass a station on the right and cross heavy traffic to shop at a cheaper station on the left. m It would take a 5-cent difference for most drivers to drive five minutes out of their way. m It would take a 10-cent difference to get most drivers to drive 10 minutes out of their way. “Because I purchase a lot of gas, it is not worth my while to drive extra or cross two to three lanes for a few cents off,” said Charles Biddle of Louisville, while filling up at a station off Interstate 75 as part of his weekly commute to get treatment for his son at Cincinnati Children’s Hospital Med- ical Center. Of course, most drivers don’t have to go out of their way to pass by competing gas stations. Some roads – Dixie Highway (both in Ohio and Kentucky), Montgomery Road, Hamilton Avenue, Alexandria Pike, Reading Road and Colerain Avenue – have more than a dozen stations each. In those cases, some planning can save money. Online tools like The Enquirer’s CinciNavigator.com can help identify prices at gas stations along your route before you leave. During May and June, the station with the highest average price charged 37 cents a gallon more than the station with the lowest average price. Here’s what the owners say: From $4.06 … to $3.69 THE HIGHEST STATION THE LOWEST STATION Question: Why does Kroger discount its gas10 cents a gallon if you spend $100 in the store in a month, but knocks 20 cents off after you spend $50 in other cities? Answer: Kroger acknowledges that its discounts are different in different markets, but says it must adjust for differing competition. The example you cite is offered in the Toledo/ Bowling Green area to compete with a similar discount offered by Giant Eagle grocery. Q: Can gas credit cards save you money? A: In some cases, yes. BP, for example, offers new credit customers 10 percent rebates per gallon for the first six months – which equates into nearly 40 cents a gallon. The rebate can be redeemed for cash, other merchandise or donated to charity. But customers first must accumulate $25 in rebates to redeem. Q: I’ve heard that it’s not good to buy gas immediately after a supply tanker has serviced a station. Is this true? A:You’re referring to the notion that the delivery of new fuel stirs up sediment in a station’s underground tanks, contaminating gas that could harm your engine. The risk is minimal, especially for newer model cars, which have advanced fuel filters. A change in federal regulations forced all stations to upgrade their underground tanks several years ago. In addition, all tanks and gas pumps have filters that should weed out any sediment or foreign material. Q: Is there a better time of day to buy gas? A: This is more of an issue during the summer, because gas evaporates more quickly when it is warmer. But a station’s tanks are underground and cooler, so evaporation is usually held to a minimum. It is a much bigger issue in the South, where temperatures are much higher. Still, experts say morning is the best time to fuel up to ensure you get what you pay for. — James Pilcher Have a question? Email James Pilcher at jpilcher@enquirer.com The Enquirer/Amie Dworecki Alex Othman, owner of the Mobil station at Mineola Pike and Interstate 275, says he makes more money on a cup of coffee than he does on a gallon of gas. Jack Hunt of Union, who recently switched to driving his car instead of his truck to save more than $100 a week in gas, pumps gas at Union Food Mart, a BP station that had the lowest average gas prices for May and June. By James Pilcher By James Pilcher The Enquirer/Jeff Swinger Despite the beefs, Store owner uses he won’t take loss fuel as loss leader jpilcher@enquirer.com ERLANGER – Alex Othman looks at the receipt for 8,000 gallons of gas he recently purchased and sighs. His Mobil station by the Mineola Pike exit off Interstate 275 charged the highest average price among 716 stations surveyed in May and June – $4.06 per gallon for regular unleaded gas. The reason: Othman refuses to sell gas at a loss as some other stations do. “I actually hope some days that I come in the morning and the gas is gone and I don’t have to worry about it,” Othman said. “So many people complain, and there is so much headache.” His station is the only one at the Mineola Pike exit and one of only two at the two interstate exits nearest Cincinnati/Northern Kentucky International Airport. The location nets him considerable traffic from drivers topping off the tanks of rental cars before returning them at the airport. Still, Othman says he earns just 1 to 2 percent of his profit on gas, even though fuel accounts for 75 percent of his store’s sales. On this day, he’s selling regular unleaded for $4.29 a gallon. He says that will earn him about 2 to 3 cents per gallon in gross profit after credit card fees and the cost of the fuel – or about $112 a day. jpilcher@enquirer.com UNION – Just call Ram Chinthala the anti-Kroger, a guy trying to beat the grocery store giant at its own game. Like his much larger counterpart 1½ miles away, Chinthala’s Union Food Mart sells BP gas well below the regional average. Often, he sells gas for less than he paid for it. Chinthala’s station charged an average $3.69 a gallon for regular unleaded gas in May and June – lowest among 716 local gas outlets surveyed that reported prices for at least 30 days. “I always lose money on gas, but it’s all about competition, and I need to get people in here to make any money,” Chinthala said. Chinthala and his brother Raghu bought the station 3½ years ago. Despite losses on gas, Chinthala says his station is profitable, with a full-service deli and soft-serve ice cream machine. His strategy: Lose money on gas but sell convenience and earn profits from other items in his store. “I get a lot of customers just looking for a loaf of bread or some milk, and who wants to walk across a big parking lot or wait in line at a grocery store?” he said. But on this day, the strategy wasn’t quite working. The nearby Kroger, Speedway and United Dairy Farmers all were selling gas for 10 cents less than he was. In the old days, stations didn’t have to advertise By James Pilcher jpilcher@enquirer.com Gas is the only major commodity that shouts daily prices from towering outdoor signs. But it wasn’t always that way. It took the 1973 Arab oil embargo and the nation’s first experience with a big spike in oil prices to make Americans demand the kind of signs that endure today. Earlier gas signs were large but simply promised that motorists would “Save!” by buying a particular brand, says Michael Karl Witzel, author of “The American Gas Station.” The Austin, Texas resident recalls that Lady Bird Johnson even under- took a beautification campaign in the 1960s to rid roadsides of the gas signs she saw as unsightly. Back then, gas companies used slogans such as Exxon’s “Tiger in your tank” and giveaways of dinnerware, glassware and silverware to lure customers. Women were courted with green stamps that were redeemable for other merchandise. It all fit a model that stressed full service over speed and convenience. “They didn’t have to advertise on price before that because oil prices were stable and they bought gas on a long-term contract,” says Lisa Margonelli, a fellow with the New America Foundation, a Washington think tank, and author of “Oil on the Brain.” “My grandma’s gas station owner was like the family doctor – he knew everything about us and about our car.” But then the embargo hit, drivers began comparing costs and station owners started displaying hand-painted signs with prices. As price drove sales, self-service pumps and convenience stores got their start – and the signs became bigger and more official. “Now, the stations and convenience stores are all just boxy and Enquirer file can be changed from one brand to another in case of a buyout over- The first gasoline “filling station” in Ohio, and possibly the first in night, by just changing the signs,” the industry, was set up in a garage at Young and Oak streets in Columbus in 1921. Margonelli said. What you can do You can stretch your gas mileage by driving wisely: m Have your car tuned regularly. An engine tune-up can improve car fuel economy by an average of 1 mile per gallon. m Keep your tires properly inflated. Underinflated tires can decrease fuel economy by up to 1 mile per gallon. m Slow down. The faster you drive, the more gasoline your car uses. Driving at 65 mph rather than 55 mph reduces fuel economy by about 2 miles per gallon. m Avoid jackrabbit starts. Abrupt starts require about twice as much gasoline as gradual starts. m Pace your driving. Unnecessary speedups, slowdowns and stops can decrease fuel economy by up to 2 miles per gallon. m Use your air conditioner sparingly. The use of air conditioning can reduce fuel economy by as much as 2 miles per gallon. m Avoid engine idling. Turn your engine off when you are delayed for more than a couple of minutes. m Plan your trips carefully. Avoid traveling during rush hours if possible to reduce fuel-consumption patterns such as starting and stopping and numerous idling periods. m Consider joining a car pool. — American Petroleum Institute ONLINE Cincinnati.Com, search: gas m Find cheapest gas in your area at CinciNavigator. m Use calculators to figure costs. m Join the discussion. m Video: Your questions. GAS SECRETS REVIEW These findings were published all last week in The Enquirer and online at Cincinnati.Com. AVG.DAILY DIFFERENCEWITHIN BRANDS INTERSTATE EFFECT CHEAPER GAS: OHIO OR KENTUCKY? 4 5 6 Brand Avg. diff. Prices varied daily by 11 cents to 38 cents a gallon within major brands. BP Marathon Shell Mobil Sunoco Kroger Speedway Unbranded Exxon Meijer Thorntons Swifty Food Mart .38 .29 .25 .25 .24 .21 .20 .15 .12 .11 .11 .11 Avg. Low Avg. High $3.74 $3.77 $3.80 $3.78 $3.80 $3.75 $3.77 $3.82 $3.84 $3.82 $3.82 $3.80 $4.12 $4.06 $4.05 $4.03 $4.04 $3.96 $3.97 $3.97 $3.96 $3.93 $3.93 $3.91 Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Prices are higher when stations are close to major highways. Gas was an average 11⁄2 cents a gallon more at stations near interstate exits. $3.92 $3.90 $3.88 $3.86 $3.84 Less than 1 to 2 2 to 3 1 mile miles miles 3 to 4 More than miles 4 miles DISTANCE FROM INTERSTATE Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Motorists pay more – sometimes much more – for gas in Northern Kentucky than in Ohio. $4.3 $4.2 $4.1 $4.0 $3.9 $3.8 $3.7 $3.6 $3.5 $3.4 $3.3 Avg. SW Ohio Avg. Northern Kentucky July 10: $4.24 July 10: $4.02 MAY 2008 JUNE 2008 JULY Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June 100 95 90 80 70 60 50 40 30 20 10 5 Product: ENQUIRER PubDate: 07-27-2008 Zone: Late Edition: 1 Page Name: A11.0 Time: 07-26-2008 20:57 User: bmullins Color: Cyan Black Yellow Magenta GAS PRICE SECRETS THE ENQUIRER REVEALED SUNDAY, JULY 27, 2008 A11 Q&A A trip to save doesn’t make sense By Gregory Korte gkorte@enquirer.com Some drivers would rather pay for convenience of a nearby station How far out of your way would you go to save a couple of cents on a gallon of gas? Before answering, consider this: At $4 a gallon, a typical driver burns 16 cents in gas every mile. A gas station a mile away – two miles round trip – would have to save 2 cents a gallon just to break even. That’s assuming your car gets 25 miles per gallon in the city (the national average) and has a 15-gallon gas tank. The greater the mileage and the bigger the tank, the more you can afford to shop around. It rarely makes sense to drive more than a block or two to save money. That’s why gas stations without competition nearby can charge a few cents more. Even when it makes economic sense, some studies show that drivers would rather pay for the convenience of a nearby station. A Biddle survey conducted in January for the National Association of Convenience Stores found that: m Gas prices would have to be 3 cents less to convince most drivers to bypass a station on the right and cross heavy traffic to shop at a cheaper station on the left. m It would take a 5-cent difference for most drivers to drive five minutes out of their way. m It would take a 10-cent difference to get most drivers to drive 10 minutes out of their way. “Because I purchase a lot of gas, it is not worth my while to drive extra or cross two to three lanes for a few cents off,” said Charles Biddle of Louisville, while filling up at a station off Interstate 75 as part of his weekly commute to get treatment for his son at Cincinnati Children’s Hospital Med- ical Center. Of course, most drivers don’t have to go out of their way to pass by competing gas stations. Some roads – Dixie Highway (both in Ohio and Kentucky), Montgomery Road, Hamilton Avenue, Alexandria Pike, Reading Road and Colerain Avenue – have more than a dozen stations each. In those cases, some planning can save money. Online tools like The Enquirer’s CinciNavigator.com can help identify prices at gas stations along your route before you leave. During May and June, the station with the highest average price charged 37 cents a gallon more than the station with the lowest average price. Here’s what the owners say: From $4.06 … to $3.69 THE HIGHEST STATION THE LOWEST STATION Question: Why does Kroger discount its gas10 cents a gallon if you spend $100 in the store in a month, but knocks 20 cents off after you spend $50 in other cities? Answer: Kroger acknowledges that its discounts are different in different markets, but says it must adjust for differing competition. The example you cite is offered in the Toledo/ Bowling Green area to compete with a similar discount offered by Giant Eagle grocery. Q: Can gas credit cards save you money? A: In some cases, yes. BP, for example, offers new credit customers 10 percent rebates per gallon for the first six months – which equates into nearly 40 cents a gallon. The rebate can be redeemed for cash, other merchandise or donated to charity. But customers first must accumulate $25 in rebates to redeem. Q: I’ve heard that it’s not good to buy gas immediately after a supply tanker has serviced a station. Is this true? A:You’re referring to the notion that the delivery of new fuel stirs up sediment in a station’s underground tanks, contaminating gas that could harm your engine. The risk is minimal, especially for newer model cars, which have advanced fuel filters. A change in federal regulations forced all stations to upgrade their underground tanks several years ago. In addition, all tanks and gas pumps have filters that should weed out any sediment or foreign material. Q: Is there a better time of day to buy gas? A: This is more of an issue during the summer, because gas evaporates more quickly when it is warmer. But a station’s tanks are underground and cooler, so evaporation is usually held to a minimum. It is a much bigger issue in the South, where temperatures are much higher. Still, experts say morning is the best time to fuel up to ensure you get what you pay for. — James Pilcher Have a question? Email James Pilcher at jpilcher@enquirer.com The Enquirer/Amie Dworecki Alex Othman, owner of the Mobil station at Mineola Pike and Interstate 275, says he makes more money on a cup of coffee than he does on a gallon of gas. Jack Hunt of Union, who recently switched to driving his car instead of his truck to save more than $100 a week in gas, pumps gas at Union Food Mart, a BP station that had the lowest average gas prices for May and June. By James Pilcher By James Pilcher The Enquirer/Jeff Swinger Despite the beefs, Store owner uses he won’t take loss fuel as loss leader jpilcher@enquirer.com ERLANGER – Alex Othman looks at the receipt for 8,000 gallons of gas he recently purchased and sighs. His Mobil station by the Mineola Pike exit off Interstate 275 charged the highest average price among 716 stations surveyed in May and June – $4.06 per gallon for regular unleaded gas. The reason: Othman refuses to sell gas at a loss as some other stations do. “I actually hope some days that I come in the morning and the gas is gone and I don’t have to worry about it,” Othman said. “So many people complain, and there is so much headache.” His station is the only one at the Mineola Pike exit and one of only two at the two interstate exits nearest Cincinnati/Northern Kentucky International Airport. The location nets him considerable traffic from drivers topping off the tanks of rental cars before returning them at the airport. Still, Othman says he earns just 1 to 2 percent of his profit on gas, even though fuel accounts for 75 percent of his store’s sales. On this day, he’s selling regular unleaded for $4.29 a gallon. He says that will earn him about 2 to 3 cents per gallon in gross profit after credit card fees and the cost of the fuel – or about $112 a day. jpilcher@enquirer.com UNION – Just call Ram Chinthala the anti-Kroger, a guy trying to beat the grocery store giant at its own game. Like his much larger counterpart 1½ miles away, Chinthala’s Union Food Mart sells BP gas well below the regional average. Often, he sells gas for less than he paid for it. Chinthala’s station charged an average $3.69 a gallon for regular unleaded gas in May and June – lowest among 716 local gas outlets surveyed that reported prices for at least 30 days. “I always lose money on gas, but it’s all about competition, and I need to get people in here to make any money,” Chinthala said. Chinthala and his brother Raghu bought the station 3½ years ago. Despite losses on gas, Chinthala says his station is profitable, with a full-service deli and soft-serve ice cream machine. His strategy: Lose money on gas but sell convenience and earn profits from other items in his store. “I get a lot of customers just looking for a loaf of bread or some milk, and who wants to walk across a big parking lot or wait in line at a grocery store?” he said. But on this day, the strategy wasn’t quite working. The nearby Kroger, Speedway and United Dairy Farmers all were selling gas for 10 cents less than he was. In the old days, stations didn’t have to advertise By James Pilcher jpilcher@enquirer.com Gas is the only major commodity that shouts daily prices from towering outdoor signs. But it wasn’t always that way. It took the 1973 Arab oil embargo and the nation’s first experience with a big spike in oil prices to make Americans demand the kind of signs that endure today. Earlier gas signs were large but simply promised that motorists would “Save!” by buying a particular brand, says Michael Karl Witzel, author of “The American Gas Station.” The Austin, Texas resident recalls that Lady Bird Johnson even under- took a beautification campaign in the 1960s to rid roadsides of the gas signs she saw as unsightly. Back then, gas companies used slogans such as Exxon’s “Tiger in your tank” and giveaways of dinnerware, glassware and silverware to lure customers. Women were courted with green stamps that were redeemable for other merchandise. It all fit a model that stressed full service over speed and convenience. “They didn’t have to advertise on price before that because oil prices were stable and they bought gas on a long-term contract,” says Lisa Margonelli, a fellow with the New America Foundation, a Washington think tank, and author of “Oil on the Brain.” “My grandma’s gas station owner was like the family doctor – he knew everything about us and about our car.” But then the embargo hit, drivers began comparing costs and station owners started displaying hand-painted signs with prices. As price drove sales, self-service pumps and convenience stores got their start – and the signs became bigger and more official. “Now, the stations and convenience stores are all just boxy and Enquirer file can be changed from one brand to another in case of a buyout over- The first gasoline “filling station” in Ohio, and possibly the first in night, by just changing the signs,” the industry, was set up in a garage at Young and Oak streets in Columbus in 1921. Margonelli said. What you can do You can stretch your gas mileage by driving wisely: m Have your car tuned regularly. An engine tune-up can improve car fuel economy by an average of 1 mile per gallon. m Keep your tires properly inflated. Underinflated tires can decrease fuel economy by up to 1 mile per gallon. m Slow down. The faster you drive, the more gasoline your car uses. Driving at 65 mph rather than 55 mph reduces fuel economy by about 2 miles per gallon. m Avoid jackrabbit starts. Abrupt starts require about twice as much gasoline as gradual starts. m Pace your driving. Unnecessary speedups, slowdowns and stops can decrease fuel economy by up to 2 miles per gallon. m Use your air conditioner sparingly. The use of air conditioning can reduce fuel economy by as much as 2 miles per gallon. m Avoid engine idling. Turn your engine off when you are delayed for more than a couple of minutes. m Plan your trips carefully. Avoid traveling during rush hours if possible to reduce fuel-consumption patterns such as starting and stopping and numerous idling periods. m Consider joining a car pool. — American Petroleum Institute ONLINE Cincinnati.Com, search: gas m Find cheapest gas in your area at CinciNavigator. m Use calculators to figure costs. m Join the discussion. m Video: Your questions. GAS SECRETS REVIEW These findings were published all last week in The Enquirer and online at Cincinnati.Com. AVG.DAILY DIFFERENCEWITHIN BRANDS INTERSTATE EFFECT CHEAPER GAS: OHIO OR KENTUCKY? 4 5 6 Brand Avg. diff. Prices varied daily by 11 cents to 38 cents a gallon within major brands. BP Marathon Shell Mobil Sunoco Kroger Speedway Unbranded Exxon Meijer Thorntons Swifty Food Mart .38 .29 .25 .25 .24 .21 .20 .15 .12 .11 .11 .11 Avg. Low Avg. High $3.74 $3.77 $3.80 $3.78 $3.80 $3.75 $3.77 $3.82 $3.84 $3.82 $3.82 $3.80 $4.12 $4.06 $4.05 $4.03 $4.04 $3.96 $3.97 $3.97 $3.96 $3.93 $3.93 $3.91 Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Prices are higher when stations are close to major highways. Gas was an average 11⁄2 cents a gallon more at stations near interstate exits. $3.92 $3.90 $3.88 $3.86 $3.84 Less than 1 to 2 2 to 3 1 mile miles miles 3 to 4 More than miles 4 miles DISTANCE FROM INTERSTATE Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Motorists pay more – sometimes much more – for gas in Northern Kentucky than in Ohio. $4.3 $4.2 $4.1 $4.0 $3.9 $3.8 $3.7 $3.6 $3.5 $3.4 $3.3 Avg. SW Ohio Avg. Northern Kentucky July 10: $4.24 July 10: $4.02 MAY 2008 JUNE 2008 JULY Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June 100 95 90 80 70 60 50 40 30 20 10 5 Product: ENQUIRER PubDate: 07-27-2008 Zone: Late Edition: 1 Page Name: A11.0 Time: 07-26-2008 20:57 User: bmullins Color: Cyan Black Yellow Magenta GAS PRICE SECRETS THE ENQUIRER REVEALED SUNDAY, JULY 27, 2008 A11 Q&A A trip to save doesn’t make sense By Gregory Korte gkorte@enquirer.com Some drivers would rather pay for convenience of a nearby station How far out of your way would you go to save a couple of cents on a gallon of gas? Before answering, consider this: At $4 a gallon, a typical driver burns 16 cents in gas every mile. A gas station a mile away – two miles round trip – would have to save 2 cents a gallon just to break even. That’s assuming your car gets 25 miles per gallon in the city (the national average) and has a 15-gallon gas tank. The greater the mileage and the bigger the tank, the more you can afford to shop around. It rarely makes sense to drive more than a block or two to save money. That’s why gas stations without competition nearby can charge a few cents more. Even when it makes economic sense, some studies show that drivers would rather pay for the convenience of a nearby station. A Biddle survey conducted in January for the National Association of Convenience Stores found that: m Gas prices would have to be 3 cents less to convince most drivers to bypass a station on the right and cross heavy traffic to shop at a cheaper station on the left. m It would take a 5-cent difference for most drivers to drive five minutes out of their way. m It would take a 10-cent difference to get most drivers to drive 10 minutes out of their way. “Because I purchase a lot of gas, it is not worth my while to drive extra or cross two to three lanes for a few cents off,” said Charles Biddle of Louisville, while filling up at a station off Interstate 75 as part of his weekly commute to get treatment for his son at Cincinnati Children’s Hospital Med- ical Center. Of course, most drivers don’t have to go out of their way to pass by competing gas stations. Some roads – Dixie Highway (both in Ohio and Kentucky), Montgomery Road, Hamilton Avenue, Alexandria Pike, Reading Road and Colerain Avenue – have more than a dozen stations each. In those cases, some planning can save money. Online tools like The Enquirer’s CinciNavigator.com can help identify prices at gas stations along your route before you leave. During May and June, the station with the highest average price charged 37 cents a gallon more than the station with the lowest average price. Here’s what the owners say: From $4.06 … to $3.69 THE HIGHEST STATION THE LOWEST STATION Question: Why does Kroger discount its gas10 cents a gallon if you spend $100 in the store in a month, but knocks 20 cents off after you spend $50 in other cities? Answer: Kroger acknowledges that its discounts are different in different markets, but says it must adjust for differing competition. The example you cite is offered in the Toledo/ Bowling Green area to compete with a similar discount offered by Giant Eagle grocery. Q: Can gas credit cards save you money? A: In some cases, yes. BP, for example, offers new credit customers 10 percent rebates per gallon for the first six months – which equates into nearly 40 cents a gallon. The rebate can be redeemed for cash, other merchandise or donated to charity. But customers first must accumulate $25 in rebates to redeem. Q: I’ve heard that it’s not good to buy gas immediately after a supply tanker has serviced a station. Is this true? A:You’re referring to the notion that the delivery of new fuel stirs up sediment in a station’s underground tanks, contaminating gas that could harm your engine. The risk is minimal, especially for newer model cars, which have advanced fuel filters. A change in federal regulations forced all stations to upgrade their underground tanks several years ago. In addition, all tanks and gas pumps have filters that should weed out any sediment or foreign material. Q: Is there a better time of day to buy gas? A: This is more of an issue during the summer, because gas evaporates more quickly when it is warmer. But a station’s tanks are underground and cooler, so evaporation is usually held to a minimum. It is a much bigger issue in the South, where temperatures are much higher. Still, experts say morning is the best time to fuel up to ensure you get what you pay for. — James Pilcher Have a question? Email James Pilcher at jpilcher@enquirer.com The Enquirer/Amie Dworecki Alex Othman, owner of the Mobil station at Mineola Pike and Interstate 275, says he makes more money on a cup of coffee than he does on a gallon of gas. Jack Hunt of Union, who recently switched to driving his car instead of his truck to save more than $100 a week in gas, pumps gas at Union Food Mart, a BP station that had the lowest average gas prices for May and June. By James Pilcher By James Pilcher The Enquirer/Jeff Swinger Despite the beefs, Store owner uses he won’t take loss fuel as loss leader jpilcher@enquirer.com ERLANGER – Alex Othman looks at the receipt for 8,000 gallons of gas he recently purchased and sighs. His Mobil station by the Mineola Pike exit off Interstate 275 charged the highest average price among 716 stations surveyed in May and June – $4.06 per gallon for regular unleaded gas. The reason: Othman refuses to sell gas at a loss as some other stations do. “I actually hope some days that I come in the morning and the gas is gone and I don’t have to worry about it,” Othman said. “So many people complain, and there is so much headache.” His station is the only one at the Mineola Pike exit and one of only two at the two interstate exits nearest Cincinnati/Northern Kentucky International Airport. The location nets him considerable traffic from drivers topping off the tanks of rental cars before returning them at the airport. Still, Othman says he earns just 1 to 2 percent of his profit on gas, even though fuel accounts for 75 percent of his store’s sales. On this day, he’s selling regular unleaded for $4.29 a gallon. He says that will earn him about 2 to 3 cents per gallon in gross profit after credit card fees and the cost of the fuel – or about $112 a day. jpilcher@enquirer.com UNION – Just call Ram Chinthala the anti-Kroger, a guy trying to beat the grocery store giant at its own game. Like his much larger counterpart 1½ miles away, Chinthala’s Union Food Mart sells BP gas well below the regional average. Often, he sells gas for less than he paid for it. Chinthala’s station charged an average $3.69 a gallon for regular unleaded gas in May and June – lowest among 716 local gas outlets surveyed that reported prices for at least 30 days. “I always lose money on gas, but it’s all about competition, and I need to get people in here to make any money,” Chinthala said. Chinthala and his brother Raghu bought the station 3½ years ago. Despite losses on gas, Chinthala says his station is profitable, with a full-service deli and soft-serve ice cream machine. His strategy: Lose money on gas but sell convenience and earn profits from other items in his store. “I get a lot of customers just looking for a loaf of bread or some milk, and who wants to walk across a big parking lot or wait in line at a grocery store?” he said. But on this day, the strategy wasn’t quite working. The nearby Kroger, Speedway and United Dairy Farmers all were selling gas for 10 cents less than he was. In the old days, stations didn’t have to advertise By James Pilcher jpilcher@enquirer.com Gas is the only major commodity that shouts daily prices from towering outdoor signs. But it wasn’t always that way. It took the 1973 Arab oil embargo and the nation’s first experience with a big spike in oil prices to make Americans demand the kind of signs that endure today. Earlier gas signs were large but simply promised that motorists would “Save!” by buying a particular brand, says Michael Karl Witzel, author of “The American Gas Station.” The Austin, Texas resident recalls that Lady Bird Johnson even under- took a beautification campaign in the 1960s to rid roadsides of the gas signs she saw as unsightly. Back then, gas companies used slogans such as Exxon’s “Tiger in your tank” and giveaways of dinnerware, glassware and silverware to lure customers. Women were courted with green stamps that were redeemable for other merchandise. It all fit a model that stressed full service over speed and convenience. “They didn’t have to advertise on price before that because oil prices were stable and they bought gas on a long-term contract,” says Lisa Margonelli, a fellow with the New America Foundation, a Washington think tank, and author of “Oil on the Brain.” “My grandma’s gas station owner was like the family doctor – he knew everything about us and about our car.” But then the embargo hit, drivers began comparing costs and station owners started displaying hand-painted signs with prices. As price drove sales, self-service pumps and convenience stores got their start – and the signs became bigger and more official. “Now, the stations and convenience stores are all just boxy and Enquirer file can be changed from one brand to another in case of a buyout over- The first gasoline “filling station” in Ohio, and possibly the first in night, by just changing the signs,” the industry, was set up in a garage at Young and Oak streets in Columbus in 1921. Margonelli said. What you can do You can stretch your gas mileage by driving wisely: m Have your car tuned regularly. An engine tune-up can improve car fuel economy by an average of 1 mile per gallon. m Keep your tires properly inflated. Underinflated tires can decrease fuel economy by up to 1 mile per gallon. m Slow down. The faster you drive, the more gasoline your car uses. Driving at 65 mph rather than 55 mph reduces fuel economy by about 2 miles per gallon. m Avoid jackrabbit starts. Abrupt starts require about twice as much gasoline as gradual starts. m Pace your driving. Unnecessary speedups, slowdowns and stops can decrease fuel economy by up to 2 miles per gallon. m Use your air conditioner sparingly. The use of air conditioning can reduce fuel economy by as much as 2 miles per gallon. m Avoid engine idling. Turn your engine off when you are delayed for more than a couple of minutes. m Plan your trips carefully. Avoid traveling during rush hours if possible to reduce fuel-consumption patterns such as starting and stopping and numerous idling periods. m Consider joining a car pool. — American Petroleum Institute ONLINE Cincinnati.Com, search: gas m Find cheapest gas in your area at CinciNavigator. m Use calculators to figure costs. m Join the discussion. m Video: Your questions. GAS SECRETS REVIEW These findings were published all last week in The Enquirer and online at Cincinnati.Com. AVG.DAILY DIFFERENCEWITHIN BRANDS INTERSTATE EFFECT CHEAPER GAS: OHIO OR KENTUCKY? 4 5 6 Brand Avg. diff. Prices varied daily by 11 cents to 38 cents a gallon within major brands. BP Marathon Shell Mobil Sunoco Kroger Speedway Unbranded Exxon Meijer Thorntons Swifty Food Mart .38 .29 .25 .25 .24 .21 .20 .15 .12 .11 .11 .11 Avg. Low Avg. High $3.74 $3.77 $3.80 $3.78 $3.80 $3.75 $3.77 $3.82 $3.84 $3.82 $3.82 $3.80 $4.12 $4.06 $4.05 $4.03 $4.04 $3.96 $3.97 $3.97 $3.96 $3.93 $3.93 $3.91 Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Prices are higher when stations are close to major highways. Gas was an average 11⁄2 cents a gallon more at stations near interstate exits. $3.92 $3.90 $3.88 $3.86 $3.84 Less than 1 to 2 2 to 3 1 mile miles miles 3 to 4 More than miles 4 miles DISTANCE FROM INTERSTATE Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Motorists pay more – sometimes much more – for gas in Northern Kentucky than in Ohio. $4.3 $4.2 $4.1 $4.0 $3.9 $3.8 $3.7 $3.6 $3.5 $3.4 $3.3 Avg. SW Ohio Avg. Northern Kentucky July 10: $4.24 July 10: $4.02 MAY 2008 JUNE 2008 JULY Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June 100 95 90 80 70 60 50 40 30 20 10 5 Product: ENQUIRER PubDate: 07-27-2008 Zone: Late Edition: 1 Page Name: A11.0 Time: 07-26-2008 20:57 User: bmullins Color: Cyan Black Yellow Magenta GAS PRICE SECRETS THE ENQUIRER REVEALED SUNDAY, JULY 27, 2008 A11 Q&A A trip to save doesn’t make sense By Gregory Korte gkorte@enquirer.com Some drivers would rather pay for convenience of a nearby station How far out of your way would you go to save a couple of cents on a gallon of gas? Before answering, consider this: At $4 a gallon, a typical driver burns 16 cents in gas every mile. A gas station a mile away – two miles round trip – would have to save 2 cents a gallon just to break even. That’s assuming your car gets 25 miles per gallon in the city (the national average) and has a 15-gallon gas tank. The greater the mileage and the bigger the tank, the more you can afford to shop around. It rarely makes sense to drive more than a block or two to save money. That’s why gas stations without competition nearby can charge a few cents more. Even when it makes economic sense, some studies show that drivers would rather pay for the convenience of a nearby station. A Biddle survey conducted in January for the National Association of Convenience Stores found that: m Gas prices would have to be 3 cents less to convince most drivers to bypass a station on the right and cross heavy traffic to shop at a cheaper station on the left. m It would take a 5-cent difference for most drivers to drive five minutes out of their way. m It would take a 10-cent difference to get most drivers to drive 10 minutes out of their way. “Because I purchase a lot of gas, it is not worth my while to drive extra or cross two to three lanes for a few cents off,” said Charles Biddle of Louisville, while filling up at a station off Interstate 75 as part of his weekly commute to get treatment for his son at Cincinnati Children’s Hospital Med- ical Center. Of course, most drivers don’t have to go out of their way to pass by competing gas stations. Some roads – Dixie Highway (both in Ohio and Kentucky), Montgomery Road, Hamilton Avenue, Alexandria Pike, Reading Road and Colerain Avenue – have more than a dozen stations each. In those cases, some planning can save money. Online tools like The Enquirer’s CinciNavigator.com can help identify prices at gas stations along your route before you leave. During May and June, the station with the highest average price charged 37 cents a gallon more than the station with the lowest average price. Here’s what the owners say: From $4.06 … to $3.69 THE HIGHEST STATION THE LOWEST STATION Question: Why does Kroger discount its gas10 cents a gallon if you spend $100 in the store in a month, but knocks 20 cents off after you spend $50 in other cities? Answer: Kroger acknowledges that its discounts are different in different markets, but says it must adjust for differing competition. The example you cite is offered in the Toledo/ Bowling Green area to compete with a similar discount offered by Giant Eagle grocery. Q: Can gas credit cards save you money? A: In some cases, yes. BP, for example, offers new credit customers 10 percent rebates per gallon for the first six months – which equates into nearly 40 cents a gallon. The rebate can be redeemed for cash, other merchandise or donated to charity. But customers first must accumulate $25 in rebates to redeem. Q: I’ve heard that it’s not good to buy gas immediately after a supply tanker has serviced a station. Is this true? A:You’re referring to the notion that the delivery of new fuel stirs up sediment in a station’s underground tanks, contaminating gas that could harm your engine. The risk is minimal, especially for newer model cars, which have advanced fuel filters. A change in federal regulations forced all stations to upgrade their underground tanks several years ago. In addition, all tanks and gas pumps have filters that should weed out any sediment or foreign material. Q: Is there a better time of day to buy gas? A: This is more of an issue during the summer, because gas evaporates more quickly when it is warmer. But a station’s tanks are underground and cooler, so evaporation is usually held to a minimum. It is a much bigger issue in the South, where temperatures are much higher. Still, experts say morning is the best time to fuel up to ensure you get what you pay for. — James Pilcher Have a question? Email James Pilcher at jpilcher@enquirer.com The Enquirer/Amie Dworecki Alex Othman, owner of the Mobil station at Mineola Pike and Interstate 275, says he makes more money on a cup of coffee than he does on a gallon of gas. Jack Hunt of Union, who recently switched to driving his car instead of his truck to save more than $100 a week in gas, pumps gas at Union Food Mart, a BP station that had the lowest average gas prices for May and June. By James Pilcher By James Pilcher The Enquirer/Jeff Swinger Despite the beefs, Store owner uses he won’t take loss fuel as loss leader jpilcher@enquirer.com ERLANGER – Alex Othman looks at the receipt for 8,000 gallons of gas he recently purchased and sighs. His Mobil station by the Mineola Pike exit off Interstate 275 charged the highest average price among 716 stations surveyed in May and June – $4.06 per gallon for regular unleaded gas. The reason: Othman refuses to sell gas at a loss as some other stations do. “I actually hope some days that I come in the morning and the gas is gone and I don’t have to worry about it,” Othman said. “So many people complain, and there is so much headache.” His station is the only one at the Mineola Pike exit and one of only two at the two interstate exits nearest Cincinnati/Northern Kentucky International Airport. The location nets him considerable traffic from drivers topping off the tanks of rental cars before returning them at the airport. Still, Othman says he earns just 1 to 2 percent of his profit on gas, even though fuel accounts for 75 percent of his store’s sales. On this day, he’s selling regular unleaded for $4.29 a gallon. He says that will earn him about 2 to 3 cents per gallon in gross profit after credit card fees and the cost of the fuel – or about $112 a day. jpilcher@enquirer.com UNION – Just call Ram Chinthala the anti-Kroger, a guy trying to beat the grocery store giant at its own game. Like his much larger counterpart 1½ miles away, Chinthala’s Union Food Mart sells BP gas well below the regional average. Often, he sells gas for less than he paid for it. Chinthala’s station charged an average $3.69 a gallon for regular unleaded gas in May and June – lowest among 716 local gas outlets surveyed that reported prices for at least 30 days. “I always lose money on gas, but it’s all about competition, and I need to get people in here to make any money,” Chinthala said. Chinthala and his brother Raghu bought the station 3½ years ago. Despite losses on gas, Chinthala says his station is profitable, with a full-service deli and soft-serve ice cream machine. His strategy: Lose money on gas but sell convenience and earn profits from other items in his store. “I get a lot of customers just looking for a loaf of bread or some milk, and who wants to walk across a big parking lot or wait in line at a grocery store?” he said. But on this day, the strategy wasn’t quite working. The nearby Kroger, Speedway and United Dairy Farmers all were selling gas for 10 cents less than he was. In the old days, stations didn’t have to advertise By James Pilcher jpilcher@enquirer.com Gas is the only major commodity that shouts daily prices from towering outdoor signs. But it wasn’t always that way. It took the 1973 Arab oil embargo and the nation’s first experience with a big spike in oil prices to make Americans demand the kind of signs that endure today. Earlier gas signs were large but simply promised that motorists would “Save!” by buying a particular brand, says Michael Karl Witzel, author of “The American Gas Station.” The Austin, Texas resident recalls that Lady Bird Johnson even under- took a beautification campaign in the 1960s to rid roadsides of the gas signs she saw as unsightly. Back then, gas companies used slogans such as Exxon’s “Tiger in your tank” and giveaways of dinnerware, glassware and silverware to lure customers. Women were courted with green stamps that were redeemable for other merchandise. It all fit a model that stressed full service over speed and convenience. “They didn’t have to advertise on price before that because oil prices were stable and they bought gas on a long-term contract,” says Lisa Margonelli, a fellow with the New America Foundation, a Washington think tank, and author of “Oil on the Brain.” “My grandma’s gas station owner was like the family doctor – he knew everything about us and about our car.” But then the embargo hit, drivers began comparing costs and station owners started displaying hand-painted signs with prices. As price drove sales, self-service pumps and convenience stores got their start – and the signs became bigger and more official. “Now, the stations and convenience stores are all just boxy and Enquirer file can be changed from one brand to another in case of a buyout over- The first gasoline “filling station” in Ohio, and possibly the first in night, by just changing the signs,” the industry, was set up in a garage at Young and Oak streets in Columbus in 1921. Margonelli said. What you can do You can stretch your gas mileage by driving wisely: m Have your car tuned regularly. An engine tune-up can improve car fuel economy by an average of 1 mile per gallon. m Keep your tires properly inflated. Underinflated tires can decrease fuel economy by up to 1 mile per gallon. m Slow down. The faster you drive, the more gasoline your car uses. Driving at 65 mph rather than 55 mph reduces fuel economy by about 2 miles per gallon. m Avoid jackrabbit starts. Abrupt starts require about twice as much gasoline as gradual starts. m Pace your driving. Unnecessary speedups, slowdowns and stops can decrease fuel economy by up to 2 miles per gallon. m Use your air conditioner sparingly. The use of air conditioning can reduce fuel economy by as much as 2 miles per gallon. m Avoid engine idling. Turn your engine off when you are delayed for more than a couple of minutes. m Plan your trips carefully. Avoid traveling during rush hours if possible to reduce fuel-consumption patterns such as starting and stopping and numerous idling periods. m Consider joining a car pool. — American Petroleum Institute ONLINE Cincinnati.Com, search: gas m Find cheapest gas in your area at CinciNavigator. m Use calculators to figure costs. m Join the discussion. m Video: Your questions. GAS SECRETS REVIEW These findings were published all last week in The Enquirer and online at Cincinnati.Com. AVG.DAILY DIFFERENCEWITHIN BRANDS INTERSTATE EFFECT CHEAPER GAS: OHIO OR KENTUCKY? 4 5 6 Brand Avg. diff. Prices varied daily by 11 cents to 38 cents a gallon within major brands. BP Marathon Shell Mobil Sunoco Kroger Speedway Unbranded Exxon Meijer Thorntons Swifty Food Mart .38 .29 .25 .25 .24 .21 .20 .15 .12 .11 .11 .11 Avg. Low Avg. High $3.74 $3.77 $3.80 $3.78 $3.80 $3.75 $3.77 $3.82 $3.84 $3.82 $3.82 $3.80 $4.12 $4.06 $4.05 $4.03 $4.04 $3.96 $3.97 $3.97 $3.96 $3.93 $3.93 $3.91 Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Prices are higher when stations are close to major highways. Gas was an average 11⁄2 cents a gallon more at stations near interstate exits. $3.92 $3.90 $3.88 $3.86 $3.84 Less than 1 to 2 2 to 3 1 mile miles miles 3 to 4 More than miles 4 miles DISTANCE FROM INTERSTATE Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Motorists pay more – sometimes much more – for gas in Northern Kentucky than in Ohio. $4.3 $4.2 $4.1 $4.0 $3.9 $3.8 $3.7 $3.6 $3.5 $3.4 $3.3 Avg. SW Ohio Avg. Northern Kentucky July 10: $4.24 July 10: $4.02 MAY 2008 JUNE 2008 JULY Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June 100 95 90 80 70 60 50 40 30 20 10 5 Product: ENQUIRER PubDate: 07-27-2008 Zone: Late Edition: 1 Page Name: A10.0 Time: 07-26-2008 20:58 User: bmullins Color: Cyan Black Yellow Magenta GAS PRICE SECRETS A10 SUNDAY, JULY 27, 2008 How neighborhoods compare How much you pay for gas often depends on where you live. On average, motorists pay more in inner-city neighborhoods and rural areas where fewer gas stations compete for your business. Motorists fueling up in Indian Hill and Verona paid some of the highest prices in May and June, while consumers in Union and Avondale paid some of the lowest. Average price by ZIP code May-June 2008 $3.81 - $3.87 $3.88 - $3.93 $3.94 - $4.00 $4.01 - $4.06 No stations 75 Butler Co. 74 Dearborn Co. Warren Co. Hamilton Co. Clermont Co. 275 275 Kenton Co. Boone Co. Southwest Ohio 45002 45005 45011 45013 45014 45015 45026 45030 45032 45036 45039 45040 45042 45044 45050 45053 45056 45065 45066 45067 45068 45069 45102 45103 45106 45120 45122 45140 45150 45152 45157 45160 45174 45176 45202 45203 45204 45205 45206 45207 45208 45209 45211 45212 45213 45214 45215 45216 45217 45219 45220 45223 45224 45225 45226 45227 45229 45230 Cleves Franklin Hamilton Hamilton Fairfield Hamilton Hamilton Harrison Harveysburg Lebanon Maineville Mason Middletown Middletown Monroe Okeana Oxford South Lebanon Springboro Trenton Waynesville West Chester Amelia Batavia Bethel Felicity Goshen Loveland Milford Morrow New Richmond Owensville Terrace Park Williamsburg Downtown West End Lower Price Hill Price Hill Walnut Hills Evanston Hyde Park Oakley Westwood Norwood Kennedy Heights Fairmount Wyoming Carthage Saint Bernard Corryville Clifton Northside College Hill Camp Washington East End Fairfax Avondale Mount Washington Campbell Co. 75 71 ZIP Code Includes* 71 Average Number Price of stations ZIP Code Includes* $3.94 $3.87 $3.86 $3.90 $3.88 $3.88 $3.88 $3.94 $3.96 $3.92 $3.89 $3.89 $3.90 $3.88 $3.90 $3.92 $3.89 $3.88 $3.87 $3.88 $3.95 $3.91 $3.89 $3.91 $3.96 $4.03 $3.90 $3.89 $3.88 $3.92 $3.94 $3.91 $3.95 $3.95 $3.94 $3.94 $3.90 $3.92 $3.92 $3.92 $3.93 $3.90 $3.91 $3.89 $3.91 $3.91 $3.90 $3.90 $3.90 $3.93 $4.03 $3.92 $3.91 $3.94 $3.92 $3.92 $3.85 $3.93 5 18 16 13 23 3 1 12 1 13 4 17 8 15 4 1 9 1 7 4 4 19 11 12 3 2 2 19 18 2 2 2 3 3 1 3 2 4 3 2 4 6 10 10 6 3 8 7 4 2 1 5 5 5 4 7 5 8 45231 Mount Healthy 45232 Saint Bernard 45233 Delhi Township 45236 Blue Ash 45237 Bond Hill 45238 Covedale 45239 White Oak 45240 Forest Park 45241 Sharonville 45242 Montgomery 45243 Indian Hill 45244 Mariemont 45245 Newtown 45246 Glendale 45247 Colerain Township 45248 Westwood 45249 Symmes Township 45251 Colerain Township 45255 Anderson Township Southwest Ohio total Northern Kentucky ZIP Code Includes* 41001 Alexandria 41005 Burlington 41007 California 41011 Covington 41015 Latonia 41016 Covington 41017 Fort Mitchell 41018 Erlanger 41042 Florence 41048 Hebron 41051 Independence 41059 Melbourne 41071 Newport 41073 Bellevue 41074 Dayton 41075 Fort Thomas 41076 Newport 41091 Union 41092 Verona 41094 Walton Northern Kentucky total Southeastern Indiana ZIP Code Includes* 47001 Aurora 47018 Dillsboro 47022 Guilford 47025 Lawrenceburg 47032 Moores Hill 47060 West Harrison Southeastern Indiana total Regional total Average Number Price of stations $3.90 $3.91 $3.95 $3.92 $3.91 $3.91 $3.92 $3.87 $3.91 $3.92 $4.05 $3.91 $3.90 $3.89 $3.92 $3.91 $3.89 $3.94 $3.91 $3.90 20 1 4 11 5 14 8 9 15 11 2 15 9 10 8 7 7 6 7 561 Average Number Price of stations $3.90 $3.95 $3.92 $3.92 $3.90 $3.96 $3.94 $3.93 $3.91 $3.92 $3.92 $3.91 $3.91 $3.90 $3.89 $3.96 $3.89 $3.81 $4.06 $3.92 $3.91 10 2 2 12 6 1 13 12 27 5 4 1 4 3 1 3 11 3 2 8 130 Average Number Price of stations $3.96 $3.97 $4.01 $3.95 $3.97 $3.95 $3.96 $3.91 7 2 1 11 1 3 25 716 *ZIP codes often contain multiple neighborhoods, and neighborhoods often cross several ZIP codes. These representative neighborhoods are listed simply to help readers locate the ZIP code. Source: Enquirer analysis of data from the Oil Price Information Service. Analysis based on sales of regular, unleaded gas at 716 stations in SW Ohio, N. Kentucky and SE Indiana. The Enquirer/Gregory Korte, Randy Mazzola About this report: 716 stations, 61 days T o unlock the secrets of retail gas prices, The Enquirer analyzed a database of daily gas prices reported by 716 stations in Greater Cincinnati, Northern Kentucky and Southeastern Indiana. Data were reported over 61 days in May and June – a time period that saw a 50-cent climb in average gas prices. In all, 31,439 price points were analyzed. The data came courtesy of the Oil Price Information Service, a Wall, N.J., provider of pricing data. It’s the same source used by many gasoline retailers to monitor the competition and set their own prices. All prices in this report are for a gallon of regular unleaded gas. Not all participating stations reported prices for all days; the typical station reported data for 44 of the 61 days. In some cases, The Enquirer omitted stations from the analysis when the small number of reporting dates would have skewed their average cost. Other sources of data included interstate ramp maps supplied by the Ohio-Kentucky-Indiana Regional Council of Governments and ZIP-code areas from the U.S. Census Bureau. Data supplied by the Oil Price Information Service differs from numbers provided by Gasbuddy.com, which supplies retail gas prices to many media outlets including The Enquirer’s Web site, Cincinnati.Com. Gasbuddy data come from prices reported by motorists, who share prices they see with others in an online forum. It’s free (as opposed to the subscription-based OPIS data) and available in real time. The data used for this report, on the other hand, are more comprehensive – about 80 percent of the region’s stations participate. It’s also more reliable because prices come directly from creditcard charges for the actual cost paid. — Gregory Korte and James Pilcher REVEALED THE ENQUIRER Gas: Stations in price dogfight From Page A1 m Speedway has emerged as the region’s market leader. It routinely uses its competitive power to set pricing, and other stations follow. m Increasing numbers of fueling stations at Kroger, Costco, Sam’s Club and other large operators are making gas sales more competitive, with lower-than-average prices. m Most oil companies are exiting the difficult retail gas business. That’s increased the number of smaller gas station owners who can influence street pricing up or down. The cost of crude oil, refining expenses, taxes and marketing all are driving the price of gas. But most of the profits have long been pocketed by the oil companies and refineries that pulled crude out of the ground, shipped it and made it into gas. What’s left of your gas dollar is open to cutthroat competition. “Once the product leaves the refinery gate, it’s every man for himself,” says James Patneau Jr., chairman of the Ohio Petroleum Marketers and Convenience Store Association, who runs four stations and delivers gas to 30 or so others around Cleveland. Competition rules Greater Cincinnati and Northern Kentucky is among the most competitive regions in the country, noted for relatively small differences between wholesale and retail gas prices, according to the Oil Price Information Service, a Wall, N.J., firm that tracks national oil and gas pricing. The company supplied the daily prices for regular unleaded gas used in The Enquirer’s analysis. Greater Cincinnati also has a relatively high concentration of gas stations competing, according to the U.S. Census Bureau. Cincinnati’s 92 gas stations per 100,000 households compares to 87 for Indianapolis, 86 for Kansas City, Mo., and 62 for Sacramento, Calif. – all cities of similar or slightly larger size. Add relative newcomer Kroger and its strategy of undercutting street pricing through its loyalty card program, and competition has become even more intense. “This is a penny business – we’re all just fighting over pennies,” says Stephen Hightower, president and chief executive officer of Franklin-based Hightowers Petroleum Co. His company supplies gas to hundreds of U.S. stations and is trying to buy more than 100 BP stations. “Unfortunately, it’s that marquee sign across the street that determines whether we’ll make a penny or five or lose two to three,” he says. Daily, station managers and owners decide whether to match price increases or decreases by competitors across the street, or to raise prices on their own – and maybe make more profit but lose all-important volume. The decisions can mean the difference between eking out a meager profit and losing money. Take this typical scenario: A station owner buys gas at $3.55 a gallon and sells it for $3.86, current wholesale and retail averages in Southwest Ohio. The dealer nets a gross profit of 31 cents a gallon, or $2,480 a week if he sells 8,000 gallons – a very busy store. But credit card companies are charging gas retailers 3 percent or more on total sales, meaning that $926 or more is knocked off the owner’s profit since the vast majority of purchases are made with plastic. That leaves about $1,500 before covering costs such as insurance, payroll, the mortgage and possible drive-off thefts. Replacing hose nozzles – a station might lose two a month to absent-minded drivers – will cost $600 each. Prices may be slightly different in Kentucky, but the effect is still the same: Station owners say they make more profit off a $1.49 cup of coffee than a full tank of gas. “The store will not pay for your overhead,” says Robert Lusby, who owns a Sunoco station on Buttermilk Pike just off Interstate The Enquirer/Jeff Swinger Ebony Johnson (left), 14, and her mother, Anissa Johnson of Westwood, pump gas into their van Friday at the Western Hills Kroger. 71/75 in Crescent Springs. “You can’t sell enough Twinkies and soda to make it – I lost $80,000 last year.” When asked why he’s still in the business, Lusby shoots back: “Want to buy it?” The cents are adding up for consumers as well: Americans spent nearly $100 million more on gas in June than in May, and $1 billion more on gas in June than during the same month five years ago. For consumers used to a decade of cheap energy in the 1990s, the price increases are nothing short of shocking. “Basically, I am working to buy gas at this point,” West Chester school teacher Kim Fowler says. She just put $80 worth of gas into her three-ton Toyota Sequoia in Florence for a trip to Atlanta. Fowler would love to “even pay $3 a gallon, even though I used to cringe at that.” Leaders and followers Retailers say they usually follow the leader when it comes to setting a daily price. Locally, that leader is Speedway, the Enquirer analysis shows. With at least 80 stores in the area, Speedway owns the highest market share – more than 20 percent of all gas sold in the region, market studies show. Every week during May and June, average area prices spiked on Wednesday, then slowly declined over the next few days before reaching a low on Tuesday. Wednesday’s spike was preceded every week by an increase in Speedway prices on Tuesday. Speedway prices then routinely fell slightly below the area average over the rest of the week. The chain owned by Houstonbased Marathon Oil sold regular, unleaded gas at an average $3.90 a gallon during May and June, falling right in the middle of average prices for all stations. “They are the market leader, and they compete using that advantage,” says Pat Gilligan, president of Hyde Park-based Gilligan Oil, which owns 43 stations in Cincinnati and Columbus. Marathon Oil’s Linda Casey says Speedway has “a high-quality fuel supply, and we can offer it at competitive prices.” She wouldn’t discuss Speedway’s local market position or specific pricing strategies, citing a lawsuit by the Kentucky attorney general over alleged price gouging after Hurricanes Katrina and Rita in fall 2005. Retail price also is influenced by the price a station pays for gas in the first place. A smaller fuel delivery costs more per gallon than a full delivery from an 8,700- major impact on the market. gallon tanker. In addition, franchisees can get Those guys will always push the price frontier. rebates from their parent gas “You’re going to see Kroger companies for volume sold – continue to be a leader in this armuch like incentives that car manufacturers give their dealers. ea and around the country.” Company officials wouldn’t disThat might make a station owner cuss pricing policies. willing to knock a penny or two But in a conference call with off his street price to drive more analysts last month, Kroger execsales. utives said that gas sales only Most consumers are aware that retail prices usually climb as broke even in January, February and March. soon as the price of crude oil “We price our fuel stations spikes, even if the gas in a stareally well on the street price. tion’s underground tanks was And, so, that drives some of the bought at a lower price. (grocery) business, too,” Kroger “I get a lot of flak for that, and it makes me mad because people chairman and CEO Dave Dillon said during the call. don’t understand,” says Steve Local distributor Hightower Harper, whose Florence-based sells gas to Kroger here and elseHarper Oil Co. runs eight convenience stores and supplies anoth- where. He says big-box stores are er 25 or so in Northern Kentucky. “some of the most sophisticated “I’ve got to do that to be able to buyers out there when it comes to gas, and they know how to get get the margin to afford the next the lowest prices.” load, which will be much more expensive. It’s not like I’ll make any profit in the long run – any re- Changing face of retail Fierce competition in difficult turns on raising the price go into times has caused many major oil the next load at a higher price.” companies to leave the retail busiThe Kroger effect ness and concentrate instead on Stations within a mile of Kromore lucrative exploration, exger gas pumps were about a pen- traction and refining operations. ny cheaper than those farther Last fall, the Ameristop conveaway during May and June, the nience store chain went out of Enquirer analysis shows. business. The name survived, Experts say grocers and other however, and many different ownnontraditional gas sellers are pull- ers now sell Shell gasoline under ing prices down everywhere, the Ameristop name. In Northern even selling below cost to lure Kentucky, 11 former Ameristops shoppers inside their stores. are now Road Ranger stores. Kroger began selling gas localShell left the retail business a ly about eight years ago at the few years ago, and England-based Mount Orab store. Now, Kroger BP is selling off its retail outlets. operates fuel centers at 28 of its “It’s hard for BP to manage a 77 stores in Greater Cincinnati station, say at the corner of Broad and Northern Kentucky. and Third in Columbus, from Kroger offers local customers London,” says Karen Dryer, execwho spend $100 a month inside utive vice president of the Ohio the stores the opportunity to pur- Petroleum Marketers Associachase a fill-up at a 10-cent-a-gallon tion. discount. Speedway, owned by Marathon Calvin Taylor of Anderson Oil, will soon be the region’s last Township buys his gas at Kroger remaining convenience-store on Beechmont Road. His main in- chain owned by an oil company. terest is in consolidating trips and More owners could mean a saving money. “I am willing to greater range in gas pricing localwait in line (at the pump), but I ly, although not necessarily lower do it when I buy my groceries,” prices, since owners already are he says. sometimes losing money. Grocers and big-box stores are Nobody is willing to guess slowly changing the retail gas inwhere the high prices might dustry, says Matt Lewis, econom- lead. ics professor at Ohio State Uni“I’ve been around this business versity. Still, he says, the shift is in one way or another for about nothing like the rapid makeover 38 years, and I’ve never seen anyof the market in the 1970s, when thing as serious as what we’re the Arab oil embargo put an emdealing with now,” says Harper, phasis on gas prices and led to in- the Northern Kentucky operator. novations such as self-service “We’ve got increased price for the pumps and convenience stores product, continually depressed selling gas. margins, higher credit card fees “You’re never going to have as and other expenses. many grocery stores as gas sta“If energy prices don’t start gotions to meet the demand,” says ing in the other direction, a lot of Lewis, who specializes in retail people are going to fall out of this gas prices. “But they are having a business.” GAS SECRETS REVIEW The Enquirer’s analysis of daily gas prices in May and June confirmed some old notions and revealed some surprises. AVERAGE PRICE BY DAY OF THE WEEK AVERAGE PRICE BY MAJOR BRAND VALUE OF NEARBY STATIONS 1 2 3 Kroger, Sam’s Club and Costco had the cheapest gas – as much as 10 cents a gallon less than traditional outlets. Store (Number surveyed) Costco (2) Sam’s Club (3) Kroger (28) Meijer (7) Mobil (93) Speedway (80) Regional Average Sunoco (61) BP (107) Marathon (134) Shell (82) $3.82 $3.84 $3.88 $3.89 $3.89 $3.90 $3.91 $3.91 $3.92 $3.92 $3.92 Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Sunday Tuesday was the cheapest day of the week to buy gas. Wednesday was the most expensive. Monday Tuesday Wednesday Thursday $3.911 $3.898 $3.890 $3.917 $3.909 Friday $3.915 Saturday $3.914 Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Gas was one cent a gallon less at stations with a competitor located within a mile. Prices are lower when stations have nearby rivals. $3.925 $3.920 $3.915 $3.910 $3.905 $3.900 -0.5 mile 1 mile 1.5 2 2.5 +2.5 miles miles miles miles DISTANCE FROM NEAREST COMPETITOR Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June 100 95 90 80 70 60 50 40 30 20 10 5 Product: ENQUIRER PubDate: 07-27-2008 Zone: Late Edition: 1 Page Name: A11.0 Time: 07-26-2008 20:57 User: bmullins Color: Cyan Black Yellow Magenta GAS PRICE SECRETS THE ENQUIRER REVEALED SUNDAY, JULY 27, 2008 A11 Q&A A trip to save doesn’t make sense By Gregory Korte gkorte@enquirer.com Some drivers would rather pay for convenience of a nearby station How far out of your way would you go to save a couple of cents on a gallon of gas? Before answering, consider this: At $4 a gallon, a typical driver burns 16 cents in gas every mile. A gas station a mile away – two miles round trip – would have to save 2 cents a gallon just to break even. That’s assuming your car gets 25 miles per gallon in the city (the national average) and has a 15-gallon gas tank. The greater the mileage and the bigger the tank, the more you can afford to shop around. It rarely makes sense to drive more than a block or two to save money. That’s why gas stations without competition nearby can charge a few cents more. Even when it makes economic sense, some studies show that drivers would rather pay for the convenience of a nearby station. A Biddle survey conducted in January for the National Association of Convenience Stores found that: m Gas prices would have to be 3 cents less to convince most drivers to bypass a station on the right and cross heavy traffic to shop at a cheaper station on the left. m It would take a 5-cent difference for most drivers to drive five minutes out of their way. m It would take a 10-cent difference to get most drivers to drive 10 minutes out of their way. “Because I purchase a lot of gas, it is not worth my while to drive extra or cross two to three lanes for a few cents off,” said Charles Biddle of Louisville, while filling up at a station off Interstate 75 as part of his weekly commute to get treatment for his son at Cincinnati Children’s Hospital Med- ical Center. Of course, most drivers don’t have to go out of their way to pass by competing gas stations. Some roads – Dixie Highway (both in Ohio and Kentucky), Montgomery Road, Hamilton Avenue, Alexandria Pike, Reading Road and Colerain Avenue – have more than a dozen stations each. In those cases, some planning can save money. Online tools like The Enquirer’s CinciNavigator.com can help identify prices at gas stations along your route before you leave. During May and June, the station with the highest average price charged 37 cents a gallon more than the station with the lowest average price. Here’s what the owners say: From $4.06 … to $3.69 THE HIGHEST STATION THE LOWEST STATION Question: Why does Kroger discount its gas10 cents a gallon if you spend $100 in the store in a month, but knocks 20 cents off after you spend $50 in other cities? Answer: Kroger acknowledges that its discounts are different in different markets, but says it must adjust for differing competition. The example you cite is offered in the Toledo/ Bowling Green area to compete with a similar discount offered by Giant Eagle grocery. Q: Can gas credit cards save you money? A: In some cases, yes. BP, for example, offers new credit customers 10 percent rebates per gallon for the first six months – which equates into nearly 40 cents a gallon. The rebate can be redeemed for cash, other merchandise or donated to charity. But customers first must accumulate $25 in rebates to redeem. Q: I’ve heard that it’s not good to buy gas immediately after a supply tanker has serviced a station. Is this true? A:You’re referring to the notion that the delivery of new fuel stirs up sediment in a station’s underground tanks, contaminating gas that could harm your engine. The risk is minimal, especially for newer model cars, which have advanced fuel filters. A change in federal regulations forced all stations to upgrade their underground tanks several years ago. In addition, all tanks and gas pumps have filters that should weed out any sediment or foreign material. Q: Is there a better time of day to buy gas? A: This is more of an issue during the summer, because gas evaporates more quickly when it is warmer. But a station’s tanks are underground and cooler, so evaporation is usually held to a minimum. It is a much bigger issue in the South, where temperatures are much higher. Still, experts say morning is the best time to fuel up to ensure you get what you pay for. — James Pilcher Have a question? Email James Pilcher at jpilcher@enquirer.com The Enquirer/Amie Dworecki Alex Othman, owner of the Mobil station at Mineola Pike and Interstate 275, says he makes more money on a cup of coffee than he does on a gallon of gas. Jack Hunt of Union, who recently switched to driving his car instead of his truck to save more than $100 a week in gas, pumps gas at Union Food Mart, a BP station that had the lowest average gas prices for May and June. By James Pilcher By James Pilcher The Enquirer/Jeff Swinger Despite the beefs, Store owner uses he won’t take loss fuel as loss leader jpilcher@enquirer.com ERLANGER – Alex Othman looks at the receipt for 8,000 gallons of gas he recently purchased and sighs. His Mobil station by the Mineola Pike exit off Interstate 275 charged the highest average price among 716 stations surveyed in May and June – $4.06 per gallon for regular unleaded gas. The reason: Othman refuses to sell gas at a loss as some other stations do. “I actually hope some days that I come in the morning and the gas is gone and I don’t have to worry about it,” Othman said. “So many people complain, and there is so much headache.” His station is the only one at the Mineola Pike exit and one of only two at the two interstate exits nearest Cincinnati/Northern Kentucky International Airport. The location nets him considerable traffic from drivers topping off the tanks of rental cars before returning them at the airport. Still, Othman says he earns just 1 to 2 percent of his profit on gas, even though fuel accounts for 75 percent of his store’s sales. On this day, he’s selling regular unleaded for $4.29 a gallon. He says that will earn him about 2 to 3 cents per gallon in gross profit after credit card fees and the cost of the fuel – or about $112 a day. jpilcher@enquirer.com UNION – Just call Ram Chinthala the anti-Kroger, a guy trying to beat the grocery store giant at its own game. Like his much larger counterpart 1½ miles away, Chinthala’s Union Food Mart sells BP gas well below the regional average. Often, he sells gas for less than he paid for it. Chinthala’s station charged an average $3.69 a gallon for regular unleaded gas in May and June – lowest among 716 local gas outlets surveyed that reported prices for at least 30 days. “I always lose money on gas, but it’s all about competition, and I need to get people in here to make any money,” Chinthala said. Chinthala and his brother Raghu bought the station 3½ years ago. Despite losses on gas, Chinthala says his station is profitable, with a full-service deli and soft-serve ice cream machine. His strategy: Lose money on gas but sell convenience and earn profits from other items in his store. “I get a lot of customers just looking for a loaf of bread or some milk, and who wants to walk across a big parking lot or wait in line at a grocery store?” he said. But on this day, the strategy wasn’t quite working. The nearby Kroger, Speedway and United Dairy Farmers all were selling gas for 10 cents less than he was. In the old days, stations didn’t have to advertise By James Pilcher jpilcher@enquirer.com Gas is the only major commodity that shouts daily prices from towering outdoor signs. But it wasn’t always that way. It took the 1973 Arab oil embargo and the nation’s first experience with a big spike in oil prices to make Americans demand the kind of signs that endure today. Earlier gas signs were large but simply promised that motorists would “Save!” by buying a particular brand, says Michael Karl Witzel, author of “The American Gas Station.” The Austin, Texas resident recalls that Lady Bird Johnson even under- took a beautification campaign in the 1960s to rid roadsides of the gas signs she saw as unsightly. Back then, gas companies used slogans such as Exxon’s “Tiger in your tank” and giveaways of dinnerware, glassware and silverware to lure customers. Women were courted with green stamps that were redeemable for other merchandise. It all fit a model that stressed full service over speed and convenience. “They didn’t have to advertise on price before that because oil prices were stable and they bought gas on a long-term contract,” says Lisa Margonelli, a fellow with the New America Foundation, a Washington think tank, and author of “Oil on the Brain.” “My grandma’s gas station owner was like the family doctor – he knew everything about us and about our car.” But then the embargo hit, drivers began comparing costs and station owners started displaying hand-painted signs with prices. As price drove sales, self-service pumps and convenience stores got their start – and the signs became bigger and more official. “Now, the stations and convenience stores are all just boxy and Enquirer file can be changed from one brand to another in case of a buyout over- The first gasoline “filling station” in Ohio, and possibly the first in night, by just changing the signs,” the industry, was set up in a garage at Young and Oak streets in Columbus in 1921. Margonelli said. What you can do You can stretch your gas mileage by driving wisely: m Have your car tuned regularly. An engine tune-up can improve car fuel economy by an average of 1 mile per gallon. m Keep your tires properly inflated. Underinflated tires can decrease fuel economy by up to 1 mile per gallon. m Slow down. The faster you drive, the more gasoline your car uses. Driving at 65 mph rather than 55 mph reduces fuel economy by about 2 miles per gallon. m Avoid jackrabbit starts. Abrupt starts require about twice as much gasoline as gradual starts. m Pace your driving. Unnecessary speedups, slowdowns and stops can decrease fuel economy by up to 2 miles per gallon. m Use your air conditioner sparingly. The use of air conditioning can reduce fuel economy by as much as 2 miles per gallon. m Avoid engine idling. Turn your engine off when you are delayed for more than a couple of minutes. m Plan your trips carefully. Avoid traveling during rush hours if possible to reduce fuel-consumption patterns such as starting and stopping and numerous idling periods. m Consider joining a car pool. — American Petroleum Institute ONLINE Cincinnati.Com, search: gas m Find cheapest gas in your area at CinciNavigator. m Use calculators to figure costs. m Join the discussion. m Video: Your questions. GAS SECRETS REVIEW These findings were published all last week in The Enquirer and online at Cincinnati.Com. AVG.DAILY DIFFERENCEWITHIN BRANDS INTERSTATE EFFECT CHEAPER GAS: OHIO OR KENTUCKY? 4 5 6 Brand Avg. diff. Prices varied daily by 11 cents to 38 cents a gallon within major brands. BP Marathon Shell Mobil Sunoco Kroger Speedway Unbranded Exxon Meijer Thorntons Swifty Food Mart .38 .29 .25 .25 .24 .21 .20 .15 .12 .11 .11 .11 Avg. Low Avg. High $3.74 $3.77 $3.80 $3.78 $3.80 $3.75 $3.77 $3.82 $3.84 $3.82 $3.82 $3.80 $4.12 $4.06 $4.05 $4.03 $4.04 $3.96 $3.97 $3.97 $3.96 $3.93 $3.93 $3.91 Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Prices are higher when stations are close to major highways. Gas was an average 11⁄2 cents a gallon more at stations near interstate exits. $3.92 $3.90 $3.88 $3.86 $3.84 Less than 1 to 2 2 to 3 1 mile miles miles 3 to 4 More than miles 4 miles DISTANCE FROM INTERSTATE Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June Motorists pay more – sometimes much more – for gas in Northern Kentucky than in Ohio. $4.3 $4.2 $4.1 $4.0 $3.9 $3.8 $3.7 $3.6 $3.5 $3.4 $3.3 Avg. SW Ohio Avg. Northern Kentucky July 10: $4.24 July 10: $4.02 MAY 2008 JUNE 2008 JULY Source: Enquirer, Oil Price Information Service data, regular unleaded gas sales at 716 stations in SW Ohio, N. Kentucky and SE Indiana in May and June