Ch 17 Reports

Our nation's gasoline crunch has left frustrated motorists in long lines at California service stations as a slight pinch here in western New York. While a critical situation may still be in the making Buffalo area motorists are taking it in stride. But the only hurt Soulfire in their pocketbooks Tonight we examine the impact on western New York as a result of the fuel crisis. And we talk to the hours making a buck and others who are shelling out more because of the rising prices at the gasoline pumps. What is your opinion of these gas prices. I think we're getting ripped up. Are you on the road. Yes I am a traveling salesman. Any trouble getting gas. I have no trouble getting it but it keeps going up every week. You think the shortage is for real. No I don't. I really don't think so I think it's being controlled by about 5 percent of the wealth in the country. And they're controlling everything. We have to pay. But you're playing you know these gasoline prices well they're way too high. I think we're being

ripped off. I'm a traveling salesman and I really feel that we're being taken advantage of. And I also feel that the administration is doing nothing about it. They seem to ignore the problem. I don't know what else to say. But I think these prices really outrageous for war and you and I want to thank is that much fruition as you know I think it just because they want to raise the prices you know to make more money off the field. Everybody just want to go up on field everybody just for money is an oil field showed it. Eg they make me believe that. They're too high way too high income by one week. What if you wanted one prize next week when you come back down to fuel another price because the only thing is the rich will be able for to drive in a bore won't answer.

Do you forsee a critical gas problem for the summer with long lines. I think it's possible but I think you do it with just a little help on the part of the public and a little relaxation of government regulations. I don't think it will happen but if the public will have to. Drive a little less maybe and not panic. Let me give an example if I may. We talk about hoarding that type of thing and I'm sure you remember back to Second World War and the coffee situation. We're in the same situation today with gasoline. There's practically a hundred and twenty million automobiles in this country today and those people are all driving on them full time.

And in California for instance. The average purchase used to be eight dollars today with alarms the average purchase is $3. So that means that a customer is going to station about three times as often just to make sure. So if you multiply that by 100 and 20 million automobiles whether it's 10 gallons each. There's a lot of excess gasoline running around on the streets. How does the allocation base work. Right now we're on a 978 base allocation for the month of May. What that means is that the government establishes that base and based on the availability of product from your supplier they establish the fraction of that base. Most companies in the Buffalo area this month. Are on an 80 to 90 percent fraction of their base supply. How do the allocations work. For your service station.

Well. They vary from station to station it all depends on how much was purchased the previous year on your base period for example. Let's assume that a service station you were brought. Here is. Going to cost 30000 gallons of gas last May. Then this main allowance would be 80 percent of what he purchased last mate. And in this particular case would be twenty four thousand gallons he would be allowed to buy to sell to the customer. As this day because of some actions we've taken. We still haven't been able. We're still not saying that we're going to have to cut off customers or do something like that so we don't want to create a panic situation like they have in California or appear to have California. What warrants a hike in your prices. Cost expenses overhead increasing in the

last five years we've had a better than 100 percent increase in our expenses here in the industry. And yet unfortunately we have not been given a raise or a passthrough from the government since 1973. They haven't seen fit to do so. What the reasoning is I have no idea. The indication to me is actions speak louder than words. And it looks like they're trying to put us out of business for what reason I don't know. But I would like to have them pay our bills. The dealer pumping the gasoline has had tremendous increases in cost in the last few years labor and the type of thing we have had tremendous increases in costs for labor. And so it was a major upgrade. So for that reason. Naturally the cost of going up and I know the public doesn't like it but on the other hand maybe as well to say that in the Buffalo area particularly for a number of years

gasoline has been a bargain a real bargain and now you're seeking a higher level and that's going with the only way that. In my opinion. The company's going to get the funds to. Produce more crude oil domestically to some of these cut rate prices cheaper than you buy gas. That's right I've asked that question for the last five years how. Can he sell it cheaper than what I can buy it for. And I expect you want the same amount of gas to go the same refinery. What's the reason. I really don't know. I've never been able to get an answer not even from the Energy Department. Those prices are controlled. By the government or the sitting president and they vary all over the board. And I might also comment that the government regulations are so complicated and this actually happened. Out of doors. And I think it was in New Jersey went to one service day

and did an audit of that man's ceiling price and all came out with a different figure. And they were government auditors. So that gives you some idea of what the dealer and we as a distributor are up against and trying to calculate what the selling price should be because it goes all the way back to 1973. Why is it your group participating in the four day nationwide shutdown of service stations. Well first of all Fran it's against the law federal as well as state. There are any trust law protecting this type of a situation where service station dealers sit down and get together and vote against whatever the government is offering. And that's why we have no we will have no part of us shutting down and hurting the consumer. What about Sunday closings I hear they may be closing on Sunday Surat New York State. Well that's that's a great possible as a matter of fact it's almost a reality now. We have approximately now 60 percent of the study and you'll find that

as the months go by into the summer for the tourists it's going to shorten our gasoline consumption and our. Likes and I should say and we're going to be forced to close Sunday. What are some of the grapes you get from your customers. We don't really get any grapes from against us. It's more against the government on the fallacy of. The gas shortage and now we got our politician famous politician Gorski after us. What's Mr. Garcia. Well I firstly for first of all I must say that I think it was a cheap shot in his part to go around and spend two days of the taxpayers money. And when I say that his pay plus two wage survey 50 service stations when I could've in five minutes told him the same thing he found out. How this survey was this alleged. Price gouging. No I think he was checking out to see if there was a ceiling price if we were body by the law of sealing prices on the pumps.

And are you. Not necessarily sold. Because there are a lot of problems that were they're incurring now such as trying to get the stickers misunderstanding of who was responsible to supply the stickers and so on. They change daily. Well when the oil company decides to raise us which has been an average joe wants a week we have to change it. Then in my particular case that means I gotta change 48 stickers. What is being done about gas station operators in violation of the federal pricing regulations. The violations actually fall under the Department of Energy which the regional offices in New York City. The county executive Mr. recounts he had set up a taskforce recently to look into these allegations these pricing gouging. To the dealers not from the dealer to the customer but from the refineries or the gas part of the producers to the dealers. And what is being done

right now are trying to you acquire information that we can turn over to the power of Energy who think you're IAD investigation. Another is there's no office that you can listen to and you know they they call the political office about two years ago what city vehicles do you service. We service all city vehicles excluding the buffel sort already. And I believe the government is was an authority. Police fire. Department toward a parliament the parliament Transportation Department. They all come under in the time stores. How much are you paying for gasoline for lead free gas. We pay 53 cents a gallon. For regular gas we pay forty nine cents a gallon. And for diesel gas we're paying 59 cents a gallon. Also. Prices or. How it's getting back against 1973 when the first gas shortage occurred. The federal government. Instituted a policy that the lowest possible. Price at that time

was Texaco for any type of gasoline. So therefore testable was established as the banner for the city of Buffalo. And they are under federal. Cars regulations. Cars the gasoline prices. To sell to the city of Buffalo. Any time they want to put on the gas. Increase in price they have to go back to the federal government and have it okayed by them. What happens when Texaco calls out if Texaco is going to pull out as they say they are then it is their responsibility to locate an alternate alternate vendor for the city of Buffalo at the lowest possible prices. What is the gasoline page done for a greyhound in the Buffalo area we haven't really felt too much of an increase due to the huge increase in business due to the shortage of. Cars. Sure. Some other parts of the country understand the Green has increased a great deal because it is particularly in the west

California which is like that. Overall I would say just a little bit too early to to to give any wide broadcast of how effective this is stealing diesel oil being our allocation of fuel hasn't been affected at all. We're getting the same feel that we've gotten last year and we've been assured that we will continue to do so in future. We have plenty of empty seats right now that we can fill. No problems force equipment is a concern for serving any any amount of passenger traffic who like it. How was the gasoline crunch affected. Metro bus. Fuel wise. Well we have not had any allocation problems. But. For everyone else we too are experiencing an increase in our costs. How high is it this year compared to last year. It's approximately

15 cents higher than it was last year at this time. So we're talking now about 55 cents a gallon. So how is this gasoline crunch affected Metro bus. Business wise. Well that is. Strange in that we've had no. Real increase in patronage. We have continued to experience approximately a two to two and a half percent increase annually and that has occurred since 1974. But we haven't as yet detected a sudden increase in writing as a result of the high price of gasoline. If the situation gets critical. Will you be able to handle it. Oh yes. We we still have considerable capacity on our existing fleet. Would you anticipate extra runs to the suburbs. We will adjust

our service as it's needed. How about the fare increase is there any anticipated by Metro bus. What do you answer that by saying that we are considering that possibility. But there have been no decisions at this point in time. What is the gasoline engine for Amtrak. Currently. It has. Plagued us with numerous calls telephone calls seeking information about our service inquiries. About what type of equipment what trains we have to various destinations. I think basically these are seeking questions. In the event that we are led to a crunch the crunch gets worse can we get on the track here up to a certain point. We do have equipment that is an excess in this area based out of Albany. And we could and will put this equipment into operation should the need arise. Did you have

enough that you can. When I speak of equipment I use we can have a passenger cars. And again this these cars are based at Albany. We do have a few of them in excess. However if we were put to a stress I'm not sure. We would have enough cars to meet the crisis. About your reservation operators and you have another one of them not personnel you know in question. Of this fact which has been directed towards our reservation centers we are in the process today after training additional. Reservation people. In our at our control centers are any runs. So now do you anticipate any sound of any runs. I would say that we're. Here in the Buffalo area. Would be sold out on the only two reserve trains that we have. The reserve trains and I'm speaking of are the trains east and west from here

going to Chicago and coming from Chicago to New York and Boston. What about the maintainance of all cars in the hitching of road then. Has that been greased manually. It has indeed. The older cars are almost eliminated now. They have been replaced by virtually all new equipment. The new cars in this area are maintained at Albany Rensselaer here in New York and. We're based out of that area. There's a gasoline crunch affecting Americans operations. Fuel less. Fuel why the gasoline crunch has impacted our revenue to some extent. I know that we're carrying more people from short haul destinations such as Detroit Syracuse New York. But we can't of then fight locally because we have the impact of the you know we're on strike or the allocation is down from last year. No our allocations are about the same as the cost of your jet fuel risen

appreciably in December of 78. The industry was pleased it was painted thirty nine point one cents per gallon in March. It had gone up to forty one point eight cents per gallon which is a seven percent decrease. And the way it's continued to escalate the cost. By August we expect it will be paying about forty four and a half cents a gallon which based on last December is almost a 40 percent increase in gasoline crunch in California has not helped America. And I think it's if anything it may have hurt us a little bit. Because of the public. People read about the long lines and waited and they wonder if they're going to be able to rent a car when you go to California. We have contacted the tourism department of California. They have assured us that they've intervened and that the rental agencies will be able to buy gasoline. Both of these you know odd even and it should not interfere with our FY drive program at all and that is a big producer of West Coast revenue believe me the

flag right program. What about fare increases as early as last week we need to affect one fare increase. American has also applied the CV for a 2.3 percent increase in all of our domestic San Juan and Virgin Island markets. We've also asked for a 5 percent increase in our American for all American Routes U.S. Canadian rules as well as a 7 percent for American troops serving U.S. and Mexican charters have slapped a fuel surcharge on to their flights and that's true. A surcharge is one way of recouping increase costs without you know a fair finding which has been wonderful. We have not done that and I understand some of the other carriers have and I have also read that in the industry to try to re industry their fare increases will vary from 6 to 14 percent and I'm sure that's.

In the form of a surcharge. In some cases what essential services do you provide. Well we're in the business of supplying the marketplace with fluid milk. OK supermarkets hospitals nursing homes schools and other independent. Grocery stores in the in the Buffalo area. How was the gasoline prices sure affecting service as well as it stands right now Fran we do not have a problem. OK. Under the allocation program as it currently exists we are guaranteed 100 percent of our requirements. That is for gasoline for gasoline correct what about diesel. No we're not as fortunate as far as diesel is concerned OK if there is a situation with the severe critical shortage we may be in a position where we'd be without fuel prices well prices are up significantly OK and a bus is going to be reflected as as the year goes on. You fairly cut back in services. Yes I do. OK very much.

If for example they go to the ration room. Then there will be no priority given agriculture except you know down on the farm which doesn't accomplish an awful lot. You may be fine on the farm but if you can't get at the market no one really benefits and the consumer eventually suffers. You surely we should have some kind of a stand by rationing. We definitely need some kind of a standby rationing plan to deal with the emergency because it's certainly going to come if everyone will save seven gallons if everyone. Will drive 100 miles less for the end of the month over the course of the entire period left to us. We won't have any difficulty and if you did and if it is everybody will resist the temptation to top off. I will hit rock bottom and let it go. And if people don't resist is there in our possible interest. They're getting their views on viewers of the week and the possibility of restrictions in some kind of rationing by summer.

The state has the power. We have the plan. To proceed with allocation of days adn even as something of that sort if need be. We don't have any motor fuel. We don't have any state reserve of motor fuel. We can allocate a slight reserve region to region as we have done to adjust for differences. You feel there is a real shortage of gasoline. I really don't feel as though there is a real shortage for the true sense of the word. I think it's manufactured because I feel that I want to feel that the government is competent enough. To be able to handle the international situation a lot better than what is indicated. And what I mean by that is this. In 1973 there was a supposed to been a shortage. And if this was the case and they were not able to foresee in a future fire enough. To avoid a situation like this. Then our government's got problems. If gasoline goes to say a dollar a gallon. Will be a plentiful supply after

that. Same ways it was in 1973 only lasted about a year and then it was all over with. How high do you think the price of gasoline will rise. I think I'd be highly suspect that the guy I know there has that there are many people that predict that premium at least will go over a dollar a gallon before the summer is over. What kind of a solution could there be. I really don't know. That is a government problem. I think what they should do is they should get all factions involved to sit down and discuss the thing right from the bottom of the industry right straight up. Locally. People can ride bicycles. And mopeds. Motorcycles. In expensive. Cars which of course indicates a shorter fuel consumption. Course by taking Amtrak.

For a longer haul. As are any fear that many area customers will be crossing the bridge to Canada for gas. Well you brought that up and I hadn't thought of it. Frankly I don't think you that word would be a fear. There will always be some of that. They cross the bridge to Canada to buy other things liquor in particular I'm going to do this often and not too often probably because I don't get over that often as an incentive. Oh yeah yeah I just came off of the TSA they don't get another good deal. That's right you're pumping up more gas this time this year than you did last year yes. Yes we are three thousand gallons more a week. What's the reason for that. If the Americans are coming over. But brings an American over to Canada for gas. Well I can devise some cheese and have a couple ales. And when I saw the price I had to go to the bank to get it to 15 percent and the place have I guess now I was 89 because it is a bigger

gallon and exchange. I'm doing very good. What do you think of the gas prices back about how terrible I think. Either way I guess all the rest of Americans somebody fixes something up there to make more money for these gas companies. I don't think there's a real gas shortage I really don't know I don't because if they got enough money enough gas to get to Europe and Japan and everybody else. I don't see why it will save us the benefit to give them billions for Egypt and Iran and Israel and what have you without your gasoline too. It saves me money when they come but if I had to come here purposely for gasoline and I don't think it would. What do you do about the exchange I exchange my money at the Bank of Montreal here on my trip over. What do you think of the gas prices back over the border in Buffalo. Well they're gettin up there but I

I don't think there were as bad as California is the least we can get in the stations. How are the Americans getting the most out of their dollar here as far as the exchange. They're going to the bank and then they get off from 15 cents on the dollar. But then they come here and get the gasoline. And if they don't come to the bank they come here and you give me a 10 percent 10 cents. And they're still pretty satisfied. Yes. As a Canadian you have any objections to the Americans coming over here and bang gas in Canada. No I don't. I work in Buffalo and I buy gas there too sometimes when it was cheaper I used to buy gas there. So I don't see any difference if we have plenty of gas why not share with them. Well we came up for lunch and we're just getting some gas while we're here. The final price is a little better. I think it probably will be a lot better. What do you think of the prices back in Buffalo. Good reason to come over here for lunch get gas.

Any idea how much savings you have here. I would say probably about 40 cents a gallon if you have your money turned over to Canadian and get the exchange. What do you think do you think there's a real gas shortage but they sure about I don't know what they're doing to us. Every opportunity you get to you can stop by over here. Phyllis look I may though I may not have to as a Canadian Do you have any objections to the Americans coming over here and buying the gasoline. No like I say I and I wouldn't blame them at all for coming over to buy it if I might get a better deal over there and I was over. I'd do the same thing.