Gas prices in Franklin County expected to stay down
by Lauren Thornton Tobin for the FCT
President and owner of Sibley Oil Company, Jim Sibley, said he expects fuel prices to continue to drop to under $2 per gallon.
“I expect fuel prices to stay low and go lower and then go up in the late spring.”
The price variation throughout Alabama has to do with taxes, Sibley said.
Sibley said among other factors, taxes and relations with the Middle East affect fuel pricing.
He said as long as the U.S. has the same relationship with the Middle East as it does now, he expects prices to stay down.
“The first affect on price is summer blend, it always increases the price,” he said. Summer blend begins in May and goes through October. Sibley said it has to do with the amount of pollution in the air.
Sibley said since the decrease in pump prices, the inventory toll is less too.
“Customers are prone to drive more because of low prices,” he said. “Everybody benefits from lower gas prices.”
According to Sibley, people should watch out for a fuel tax increase, because once the tax is added, it does not get taken off.
The office manager for K&R Gas Company had the same concerns about taxes.
“What really hurts us is Mississippi is beside us and their taxes are cheaper, so I try to match prices, but we’re ate up with taxes,” she said.
The manager for K&R requested not to have her name used, but said that she tries to look out for this area since gas can be so much cheaper in Mississippi.
“I know it’s not as cheap as a lot of places toward Tupelo, but we do all we can do help out, especially in Red Bay.”
She also said that K&R gets its prices from a pickup location and those prices are subject to change daily.
As an employee in the convenience store business since 1986, K&R manager said even with the low prices at the pump, in-store revenue may not change.
“As far as spending in convenience stores, they don’t spend a lot of money,” she said.
She said because of Christmas, and until tax season, people are less likely to use their money for quick purchases.
The price at Vulcan Oil Company/Texaco in Russellville is $2.15 and expected to keep dropping, according to Tanya Pfeifer, an employee.
Pfeifer said the drop has helped inside the store as well as at the pump.
“The more customer who come for low fuel prices buy more in-store products,” she said.
A representative from Murphy Oil USA said the amount of fuel being delivered is about the same due to the lack of changes people are willing to make to their driving habits.
The national average price per gallon of gas is $2.28, 100.5 cents per gallon lower than it was a year ago today, according to GasBuddy.com.
