September 13, 2012

Dealers price gas at $8.99 in protest

The Associated Press

SOUTH PLAINFIELD, N.J. — More than 50 Lukoil gas stations in New Jersey and Pennsylvania jacked up prices to more than $8 a gallon Wednesday to protest what they say are unfair pricing practices by Lukoil North America that leave them at a competitive disadvantage.

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Lukoil dealers and workers gather Wednesday in South Plainfield, N.J., to protest what they call unfair pricing by Lukoil North America.

The Associated Press

Dozens of Lukoil franchise owners also gathered to protest at a station in this central New Jersey town where the posted prices were an eye-popping $8.99 a gallon.

The owners and the New Jersey Gasoline, Convenience, Automotive Association said the protest was aimed at raising consumer awareness about the challenges facing Lukoil dealers and getting the company to respond to dealer grievances.

Station owners said Lukoil charges them more for gasoline than other companies charge their franchisees, forcing them to pass that increase onto consumers. It is not uncommon, they said, to see a competitor selling gas to the public for considerably less than what they're paying Lukoil per gallon.

Sal Risalvato, executive director of the gas station association, said Lukoil charges 7 cents more per gallon than other companies.

Lukoil North America issued a statement defending its pricing, which it said complies with state law, and accused the gas station association of encouraging "public misstatements and ill-conceived actions."

Lukoil, Russia's second-largest oil producer, has more than 500 stations in the Northeast and Mid-Atlantic. Many of the franchisees entered into agreements with other companies that were bought by Lukoil.

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