Old gas pumps can't handle ever-rising prices
Video |
Gas woes lead to mass transit surge May 12: Rising gas prices are sending a surge of riders to take mass transit -- and systems are benefiting from the extra revenue. NBC's Tom Costello reports. Today show |
Slide show |
MSNBC |
"The computer that they're upgrading was not designed to go any more than what it's going now, and if you do it, they don't last long enough," Turner said. "They run so fast that the gears are wearing out."
The price of fixing the meters jumped in the past three years because old pumps are being phased out for new electronic pumps and demand for refurbished meters is down, Al Eichorn, vice president of PMP Corp., which makes the mechanical meters.
The Avon, Conn., company has hired extra employees who are working overtime but still has a 14-week backlog of orders, Eichorn said.
To deal with the problem, some state regulators are allowing half-pricing — displaying the price for a half-gallon of gas, then doubling the price shown on the meter.
In North Dakota, regulators recently told service stations their mechanical pumps could use half-pricing, provided they use signs to alert costumers and find a permanent solution by April 2009.
South Dakota is preparing similar rules, officials say. And in Minnesota, rural service station owners whose pumps cannot display the right price are being told to cover up the incorrect numbers.
"The consumer can only see the gallons turning," said Bill Walsh, a spokesman for the Minnesota Department of Commerce. "Then they just have to settle up with a calculator, basically."
Colville and about a dozen other service station owners in Washington have received temporary variances from the state to allow them to half-price fuel.
Stations granted variances are required to post signs telling customers that the final price they will pay is twice what the pump meter indicates.
"No, that don't bother me. The price does," said Jim Puls, a third-generation rancher who pulled up to Colville's diesel pump to fill up his flatbed truck at $4.41 a gallon. "I can understand what they have to do."
Nationally, the average price for a gallon of gasoline rose past $3.70 Sunday, while diesel was selling for an average of $4.33 a gallon, according to AAA and the Oil Price Information Service.
Click for related content |
Small stations are struggling to make a profit on gas, even as the price rises. Its small profit margin makes it less lucrative than snacks and other products the stores sell inside.
"If gas is the profit driver and you are one of those guys with the old pumps, you're either evolving or getting out," said Jeff Lenard, spokesman for the National Association of Convenience Stores, a trade group that represents about 115,000 stores that sell gasoline.
"If you're just that kind of image of the '50s gas station where you have a conversation, fill up and have a cup of coffee, that's in the movies."
- Discuss Story On Newsvine
- Rate Story:
View popularLowHigh - Instant Message
MORE FROM OIL & ENERGY |
| Add Oil & Energy headlines to your news reader: |



