Why Are Gas Prices So High in Houlton ?
Around Town this afternoon, I overheard someone say that they were glad to see gas had dropped a nickle today. This make gas in Houlton $2.79.9 a gallon. This is still the HIGHEST price in Aroostook County. In Oakfield , just 20 miles south, gas is $2.59.9 today. It is also cheaper in Monticello, just 13 miles to the North.
Houlton has always been the "leader" in high gas prices in Aroostook County. If you ask the dealers, they will mumble something about trucking costs or rack prices. Well Guess what? Other parts of the State have the same overhead, and they can sell gas cheaper.
Most of out local dealers have their product trucked up from Searsport. Why is it that this same gas can be sold cheaper in Presque Isle and Caribou, both of which are an hour NORTH of Houlton. You would think it would be more expensive up there. Then go to the St John Valley- 2 hours NORTH and find gas cheaper still in Fort Kent and Madawaska. Why is this?
Irving Oil has a refinery in St. John N.B; so their gas comes in through Woodstock, N.B. It is still cheaper in Oakfield, Sherman Medway and even cheaper further South in Maine. Irving is not the market leader. They just follow along with the others.
Some smaller stations have tried to sell gas cheaper in Houlton from time to time- but usually they get a call from one of the local dealers ( I know this for a fact, having witnessed it before ) telling them to keep their prices in line.
In Houlton, it is one station that sets the tone, and one station alone. EXXON. They ALWAYS are the first station to RAISE their prices, sometimes by as much as six or seven hours before the others follow. They are usually the last station to lower prices too. Upper Management of these stations have taken a lot of money out of customers pockets with this practice and in turn, have made their company some decent profits. The most blatent abuse of prices by this station was during the first PHISH concert at Loring a few years ago. They were the only station to raise prices for the weekend. People noticed too. They were castigated on the Phish web site and in the local paper, to a much lesser extent.
The question still remains, "What can be done about high prices in Houlton?" Town Councilor Mike Blanchard brought the item up for discussion at a meeting in the past and Town Council wouldn't touch it with a ten foot pole. All you can do is voice your opinion and hope someone listens.
It's not right when stations raise prices as quick as they did a few weeks ago. Prices skyrocketed, increasing almost a dollar per gallon in a weeks time. I could understand if the stations had to pay more from their distributors for this gas, but often time the local stations would be raising their prices two or three times during the same shipment already in their tanks. It's not right, plain and simple.
Town Councilors wonder why they have a hard time attracting new businesses to Town. You don't have to pay me the big money they are paying Sylvio Raymond and Brian Hammel to do some economic development research for the Town. Here is a reason and a BIG ONE. The gas companies have been allowed to operate this way for years in the Shiretown.
Outside people notice. It's real easy to go to the Internet and check gas prices thoughout the State. Houlton will always , needlessly, have the highest prices in Aroostook. So while Irving, Shell, Citgo, and especially EXXON, make larger profits in Houlton than at any other place in The County; the small LOCAL guys operate with a narrow profit margine. All this contibutes as Houlton slowly loses population.
It's no coincidence. Here is an example. Today gas is twenty cents a gallon cheaper in Oakfield. Personally , my family burned 30 gallons this week. Now it is just a $6 savings this week. But it is almost always twenty cents cheaper, So carried out over 52 weeks, that is a $312 savings in gas if I don't have to buy it in Houlton.
Now for the" Ordinary Working Joe", $312 is a lot of money. It can be a car payment, a months rent, maybe two weeks worth of groceries, a new set of tires, the Christmas presents they can't afford. I could go on.
Makes you wonder why an outside business would consider coming to Houlton, does't it?
My point is simple. Gas is too damned high in Houlton, and it's a shame no one can do anything about it.
That's the view from my couch .............................
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