Lukoil Protest: $8 Gas Hits New Jersey And Pennsylvania
Lukoil gas stations in New Jersey and Pennsylvania are protesting the unfair pricing practices of Lukoil North America. The result? $8 for a gallon of gas for consumers.
Sal Risalvato of the New Jersey Gasoline, Convenience, Automotive Association, told the Associated Press that the Lukoil protests was meant to raise customer awareness about the challenges gas stations face. According to Risalvato, Lukoil gas stations have to pay a higher price for their fuel than other gas stations, which means that their profits are sliced if they price their gas competitively.
“They essentially sell the very same gasoline to stations in close proximity of each other at different prices in order to game the market and compete with other gasoline brands… In doing so, the price may differ by as much as 25 cents a gallon, and place one retailer and the retailer’s customers at an enormous disadvantage over another station.”
Fox News reports that several Lukoil gas stations are protesting the pricing practices by raising the cost for a gallon of gas above $8. Some have even raised prices as high as $9.59 for a gallon of gas.
Lukoil is the second largest oil producer in Russia. The company has been operating service stations in the US since 2003. There are now over 500 Lukoil gas stations in the Northeast and Mid-Atlantic.
What do you think of the Lukoil protest? How many people do you think will accidentally fill their cars with $8 gas?