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Old 09-12-2012, 07:33 PM   #1
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Default $9.99-a-gallon gas prices

$9.99-a-gallon gas prices shocked motorists all around New Jersey and Pennsylvania Wednesday. Franchise owners complain that Lukoil North America charges prices much higher than the competition. As a result, they are forced to pass the rising costs of fuel on to customers.

Wednesday, ABC News reported the story that had many up in arms over what they believed to be price-gouging by a number of gas station owners in the Mid-Atlantic area. The thought of paying $9.99-a-gallon for gasoline sparked a wave of complaints and telephone calls.

Lukoil of North America is partly owned by the Russian corporation, OAO Lukoil. Allegedly, the company is charging franchise owners for gasoline, in many cases, as much as $.25 a gallon more than nearby competitors.

The $9.99-a-gallon gas prices are not charged to consumers however. Instead, gas station owners are raising costs of fuels only on signs in protest to their parent company. In short, they want Lukoil to understand the pain they too are suffering at the pump.

Khaled Kezbari, who owns three Lukoil franchises in New Jersey, said this about the protest over gas prices:

"We are doing this because we are dying. Lukoil is charging us costs higher than the retail market. How can you compete? You cannot compete in the market like that."

Gas prices are a combination of labor (payroll), advertisements, utility and taxes. Then, there are fees associated with a customer using credit cards for fuel purchases at Lukoil stations.

If the parent company is charging owners above-average costs, the higher prices have to be passed on to customers.

The $9.99-a-gallon gas prices protest was explained to customers, who appear to be in support of the regional owners' plight. At this time, there has been no word from Lukoil North America about the allegations.

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