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Page added on September 26, 2008

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Southeast gas shortage squeezes small retailers

‘It’s a panic. And we are frustrated,’ says one owner of a gas station


WOODSTOCK, Ga. – Ralph Sheffield’s tidy gas station has stayed open around the clock for 13 years, keeping the lights on even during lonely Christmas mornings and the slow holiday season.


But the streak ended last week after he went eight days without receiving gas, forcing him to close early each night. Despite the crowds that crush the station when it does have fuel, Sheffield estimates his gasoline sales will drop by 30 percent this month.


The fuel shortage that has drivers across the Southeast scrambling to fill their tanks is pinching independent stations that rely on gas sales to lure customers who also buy snacks, soda and other incidentals.


“It’s a panic,” Sheffield said. “And we are frustrated.”


At least one analyst says major oil companies are supplying their branded stations and cutting off independent retailers. Experts say it could be weeks before the region again has a steady supply of gas.


Major oil companies own fewer than 5 percent of gas stations. Most are owned by small retailers like Sheffield.


The shortage has illuminated the tough spot those retailers are in as they face higher prices for their own supplies



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