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Gas prices: who's to blame?

Leon Martin of Leesburg, Fla., fills his car at RaceTrac in Clayton while watching the total climb to nearly $60.

By A.J. Puckett Staff Writer
Published:
Thursday, July 19, 2007 8:45 AM EDT
Trying to find gasoline at a reasonable price can be like trying to find a needle in a haystack.

Clayton seems to be an island of high gas prices while prices in Hollywood and Westminster, S.C., typically are up to 20 to 30 cents cheaper.

This leaves Rabunites paying more at the pump and wondering why.

"I think the gas companies are really scalping the public," said Pat Marcellino Sr. of Clayton while he was pumping gas. Marcellino is also a Rabun County commissioner.


The store owners and franchisees say they are not to blame for high gas prices.

"We survey the stations around us twice a day and send the information into the corporate offices, and they tell us when to change it," said Pam Fossier at RaceTrac.

RaceTrac corporate offices did not return phone calls.

"We follow RaceTrac, Clayton Food Mart and Circle K, but we do have to call the main office to make sure it is OK," said Judy Davenport at Circle M Food Shop.

"We actually follow along RaceTrac and try to put it a little cheaper to compete," said Cindy Warren at Mountain City Exxon.

When two or three companies are deciding the prices for an area, that leaves a question as to who is to blame for the high prices: the oil companies or the government.

"The government makes more money than the oil companies do because of taxes," said Wilbur Wood of Rabun Gap.

Both the federal and state government impose gasoline taxes. That adds up to 45.8 cents per gallon nationally as of March, according to the American Petroleum Institute. However, taxes only account for 14 percent of the price at the pump, according to www.howstuffworks.com.

As of 2002, Georgia had the second lowest gas taxes in the nation at 30.6 cents per gallon. By this past March, the state had moved to 20th on the list at 40.6 cents.

The rise in gas prices has not only put a strain on wallets, it has stopped some people from doing something they love - driving. According to www.howstuffworks.com, Americans drive nearly 2.5 trillion miles each year.

"They take all of our vacations from us," said Steve Lewis of Tiger. "I don't go that far, but I do go see my brother in Maggie Valley (N.C.), and that has slowed down."

"I don't think we ride around as much as we use to," Marcellino said. "We make every trip count."

"I always look for the cheapest gas, and on my days off my truck doesn't move," said Michael Shigley of Demorest. "It just sits in the driveway."

According to www.howstuffworks.com, the final price of gasoline breaks down like this: 50 percent of the cost is crude oil, 28 percent is the cost of refining, 8 percent for distribution and marketing and the final 14 percent goes to taxes. Then, of course, the station adds a couple of cents per gallon.



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