Gate Spokesman John Peyton Speaks about High Gas Prices

[Lunican]

Mayor Peyton Comments on High Gas Prices

JACKSONVILLE, FL -- Out of 89 gas gouging complaints in Duval County, more than half are centered around Gate gas stations. Our viewers wanted to know why Gate stations were selling gas at $4.14 -- a significantly higher price than most other local gas stations.

Tuesday, the price came down, but not the anger.

Because of Jacksonville Mayor John Peyton's ties to the company, Gate customers have been calling his office asking what he can do about it.

First Coast News got some answers from him.

Peyton said that his allegiance is to the city of Jacksonville and the people he serves. But it's his family's business, and he has to pay for gas, too.

For people like Victor Herrera, buying gas, that's nice to hear.

"It's pretty tough. Fortunately, I make enough money to cope with it and everything, but to me, I think it's unreasonable," said Herrera.

But there's a perception out there. "I believe the gas people are out there trying to profit from us," said Herrera.

But 'us' includes Mayor Peyton. Prior to his election, he served as vice president of Gate Petroleum, the company founded and owned by his father.

"The prices that we're seeing paid at the wholesale level are unprecedented and it puts a lot of pressure on the retail prices," said Peyton.

Mayor Peyton says not only are gas retailers trying to save consumers like Herrera from spending more money, he says they're actually losing more money than ever.

"We've seen a spike of close to $1.50 on the wholesale price and I think the retailers are trying to adjust to that without gouging the customers," said Peyton.

The mayor says while many retailers with refineries based along the Texas Gulf coast, where Hurricane Ike hit, have seen a $1.50 per gallon spike - and he says gate gas stations are not passing the extra charge on to us.

"I know that Gate is a responsible retailer in town and I know they've got challenges with the wholesale prices and they're doing the best they can to adjust to the market," said Peyton.

Mayor Peyton's office says there is a strict firewall between the operation of Gate Petroleum and city hall, so as to avoid any conflict of interest while he serves the people of Jacksonville.

Full Article:
http://www.firstcoastnews.com/news/topstories/news-article.aspx?storyid=118904&catid=15

[Steve]

Are we serious?

How does it make any sense for him to say anything other than, "Talk to Gate - I don't work there".  If this is evident of PR advice in the Post-Susie Wiles era, hang on folks - it's going to get interesting.

And apparently this "firewall" doesn't cover gas prices at the wholesale level.

Even President Bush, our "C student" president, doesn't bring up his oil ties in press conferences.

[Midway ®]

As Dick Cheney said......"so?"

[apvbguy]

I can't speak for the wholesale prices on gulf coast fuels but based on NY harbor prices for gas, the prices have tumbled in the last 2 days, on friday it closed at around 2.80 on monday it was down below 2.60 and on tuesday it was down to about 2.43, as I type this the price quoted on the overnight market is around 2.38 that really may not reflect the prices in our region but it does show that IKE had zero effect on the price of gas on the wholesale levels, so gate's jacking the price up to $4.14 over the weekend appears to be unjustifiable profiteering aka gouging.

what the gas suppliers did was jack up the prices for fuel already in the system in anticipation of massive disruption to production from IKE, the massive destruction didn't happen, but the refineries being off line for a few days does offer a reason for some higher prices, so that is what sellers like gate will lean on when they get investigated.
Back here in the real world I can buy you all the fuel you want for lets say 2.50 a gallon in NY, truck it down here for as nickel or so a gallon, add taxes and a profit and you're still at less than 3.40 a gallon.
something stinks here and Gate is right there smelling the place up

[ProjectMaximus]

I don't know...I have a good buddy who works kinda high up for Exxon distribution and when I called him on Sunday evening he said his whole department had been relocated to Dallas all week long and they were working round the clock cause the hurricane damage to the refineries really screwed them up. He said that my phone call was the first break he had all weekend. I don't know the details of what they had to deal with but apparently it was serious for them.

what the gas suppliers did was jack up the prices for fuel already in the system in anticipation of massive disruption to production from IKE, the massive destruction didn't happen, but the refineries being off line for a few days does offer a reason for some higher prices, so that is what sellers like gate will lean on when they get investigated.

[apvbguy]

I don't know...I have a good buddy who works kinda high up for Exxon distribution and when I called him on Sunday evening he said his whole department had been relocated to Dallas all week long and they were working round the clock cause the hurricane damage to the refineries really screwed them up. He said that my phone call was the first break he had all weekend. I don't know the details of what they had to deal with but apparently it was serious for them.

that could be the case but very screwed up is "easy" to fix, they were calling for complete devastation which did not occur, the refineries will be down a short time and supplies will be tight but the run up of prices that (to $5.00 in some places) was just pure profiteering