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<br /> pis �� s �Ir.lt�a,. October 14, 1991
<br /> exclusive report serving informed petroleum marketers nationwide
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<br /> 13pNE_s)ona P.2 - Big rockies marketer Flying J has agreed to pay the
<br /> 1 RO state of Utah $15,000 to settle charges that it violated
<br /> ` " ,•..4.;•-----;:--,,--:,:e1:4' ;1:1.:,..4-.7.--='--- 5 :',> the state's below cost selling law.
<br /> ;.-;' es l*AtanL t! j Last October, Flying J was sued by Utah Attorney
<br /> � . = ,,914 >s t General Paul Van Dam, who alleged that the rockies refiner
<br /> niA 7;{ 1f 1 . - ti was selling gasoline and diesel below cost --
<br /> the wholesale price plus a 6% mark-up egefived as
<br /> eral
<br /> days in June at a station in Ogden (OE/10/29/90)SFlying J
<br /> Gasoline Price Barometer repeatedly denied those charges, claiming that it was-
<br /> meeting other marketer's "unadvertised discounts."
<br /> The state disputes Flying J's claim. Even if it was
<br /> U.S.spot and Contract markets were meeting under-the-table discounts of competitors, Flying J
<br /> quiet U.S. last
<br /> week. Fundamentals are should only have offered its discounts to the customers
<br /> strong, given 1991 inventories are receiving the competitors' discounts, the state says,
<br /> below or about even with 1990 Under the settlement, Flying J has agreed to pay
<br /> stocks penalties of $5,000/day if it is found selling below cost
<br /> In New York, spot gasoline hovered at any station in the state during the next three years.
<br /> around 62.75cts/gal with bottom line Shell to acquire Houston stations from Mobil
<br /> rack numbers around 66cts/gal In
<br /> New England and and Shell is set to acquire 80 or so Houston stations
<br /> ark and Philadelphia. /� In New- from Mobil, Oil Express learns.
<br /> in the works for months, will giveeShell�more cthan s20%eof
<br /> In the West Coast, spot prices were
<br /> stable at 58-mss the Houston market, sources say.
<br /> /gal for prompt
<br /> delivery. Why is Mobil getting out of the market? It has long
<br /> been unhappy with its Houston market share, and despite a
<br /> big company-op push over the last few years, Mobil's mar-
<br /> Average U.S.Contract Price ket share gains have been below expectations, sources say.
<br /> 1n°"°a4 Shell dealers, many of whom already have signed up
<br /> Unleaded Gasoline No.209 for Shell's new EDT franchise program, are concerned that
<br /> NI 105.1 Shell will company-op
<br /> ss.7 eta erate the former Mobil units -- many
<br /> 4. 66.3 MA of which are near existing Shell units. Under Shell's
<br /> franchise agreements, dealers have no exclusive territo-
<br /> ries, meaning Shell can open up a company-op "EDT Mart"
<br /> _ / - right across the street.
<br /> Neither refiner would comment on the deal, which is
<br /> expected to be announced within the next month. Shell has
<br /> Average U.S.Spot Price also sold 69 outlets in Atlanta to Chevron (see page 5),
<br /> (Incavp pa
<br /> Unleaded Gasoline No.2 at What doesn't work in C-store marketing,
<br /> •soy — 95.3 102.9 What do film, large bags of sugar, frs and Why
<br /> ...0 so.s soup and frozen yogurt have in common? They've all been
<br /> / = tested and dropped by some of the nation's savviest C-
<br /> store chains.
<br /> sowXas:orq,o.r"rwm.ao"srvro. While some marketers have had success with these
<br /> 2222 items, there are some key pitfalls which may keep them
<br /> from being profitable at many stores. HereLs why:
<br /> Previous Year _
<br /> week revak • Film: C-stores seem like a_-convenient-sir-ep--pf -
<br /> __- --spa-- __ --- -- point for film processing, but Texarkana, Texas-based E-Z
<br /> Oil Express(ISSN 0195-0576)is published weekly except the first week In July and the Communi-
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<br /> Postmaster:Send address changes to Oil Express, 11 years. Second class Postage Pmd Rockville, MD and additional offices-
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<br /> Brian Crotty,publisher Carole Do 011816 8945, (301)816-
<br /> _..-- Donoghue,editor Monica Brown,circulation manager
<br />
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