Homepage / Money

Station Turns Off Pumps Amid Rising Prices

Station Owner Calls Profit Margin Too Small

POSTED: 5:42 pm EDT May 15, 2008
UPDATED: 7:40 pm EDT May 15, 2008

The high cost of fuel is forcing some gas stations to turn off the pumps.

When Amaral Motors in Newtown opened in 1932, FDR was in the White House, the Yankees swept the Cubs in the World Series, and gas was going for 10 cents a gallon.

"The price, which I doubt will come down, but if it does, I might join again," said Dan Amaral of Amaral Motors.

Amaral said the cost for gas has risen so much that he's turned off his pumps. He said the profit margin isn't enough to justify the investment.

"It's just not economically feasible to put between 30 and 40 grand in the ground and sell it every couple months," he said.

While prices in Connecticut are all over the map, stations in the Newtown area are selling gas at $4.13 a gallon, $4.35 for premium. Amaral said wholesale stores like BJ's have people lining up for gas at $3.81 a gallon.

The national average for a gallon of regular is $3.75. Alaska has the highest gas prices, averaging at $4 per gallon. Connecticut has the second-highest average in the country at $3.99, with California at $3.95.

Amaral said that the cost of the gas in the ground isn't the only expense for independent stations.

"See, I'd have to modernize my pumps," he said. "But see, when you spend that $100,000 to do it, are you going to get a return? It's come now to change, and I don't want to sell bread and milk and that stuff," he said.

For the time being, Amaral said he will stick to selling and repairing cars. He said that if gas prices come back down, he'll consider getting back into the game.

Links We Like

Sponsored Content
The first step in reducing debt is recognizing how much you have. Let us help you with the rest and get out from under your debt in 12 months. More

Get car insurance quotes from all the major carriers and save time an money in the process. Just enter your zip code and start saving today. More

Does your phone have bad reception or drop calls in your house? Then you need a Magic Jack. More

A degree from ITT Technical Institute can help you achieve your goals and get you started on the path towards a rewarding career. More

Credit Report

560? 675? 720? The average US Credit Score is 692. What is your score? See it online for FREE! More

Best Local Rates On...



LocalNational

30 Yr Fixed Mortgage4.96%5.02%

48 Mo New Car Loan6.40%6.79%

$30k Home Eq Loan6.89%8.33%

6 Month CD1.08%1.13%
Help! I don't understand!
More Rates


Sponsored Links

Stock Quotes

Get a Quote
Enter Symbol


Housing Crunch

With banks and lenders facing major troubles, gain some insight on how to sell, refinance or keep your home. You'll find everything mortgage in our special section. More


E-Mail News Alerts
Get breaking news and daily headlines.
Browse all e-mail newsletters