Gas is up, but gas pedals are down

Despite higher gas prices this year, drivers in Eastern Washington and North Idaho are consuming as much gasoline as in years past, area retailers say.

Gas prices, which had spiked to $2.20 a gallon, have dropped to below $1.95 at some area stations. Last year at this time, Spokane’s average price was $1.63 per gallon; it was $1.61 in Coeur d’Alene.

Still, many area gas sellers say fuel sales are now either the same or higher than they had been during 2003.

Officials for AAA Washington’s Spokane office say they’ve seen a “significant increase” in requests for trip information and driving maps this year compared to last.

“Several factors are probably involved,” said AAA spokesman Dave Overstreet. “The economy has rebounded and let people feel more like driving. Plus there may have been some pent-up driving, as people may have cut back in recent years. Now they’re feeling like getting out and going.”

Spokane’s gas prices are still above the national average. The U.S. average, according to AAA.com, is $1.91 per gallon of unleaded gas, compared with about $2.01 in Eastern Washington. In Coeur d’Alene, the current average is $1.98.

Cherie Myers, a spokeswoman for Safeway stores, said the chain’s gasoline sales “are certainly not lower than last year.” She added that Safeway never reveals exact sales data.

Chains such as Safeway, Costco and Albertson’s have been dubbed “hypermarketers” by other gas-station operators, and they’ve grabbed about 15 percent of the gas and diesel market in cities where they operate, said Jim Redmon, president of Spokane-based Divine’s Oil Company, which runs 12 Shell Oil stations.

The hypermarketers put pressure on the independents and national oil suppliers, like Chevron, by cutting per-gallon prices.

Safeway’s Neider Avenue service station in Coeur d’Alene, for example, was charging $1.89 per gallon for regular fuel on Friday, while a nearby Cenex station was charging $1.92 per gallon. Cenex Station Manager Art Grant said there’s little he can do to stop Joe Driver from visiting the pump with the cheapest price. “The lower prices are why my station is a bit off (in total sales, compared to 2003),” Grant said.

Sales at his station have also been hit by the arrival of a new Coeur d’Alene Costco, which opened its doors — and gas pumps — this past spring.

Even so, Cenex General Manager Brian Borg said the four North Idaho and the one Spokane Cenex stations are seeing sales volumes “about level” with last year. Cenex’s stations have been protected by having a regular clientele of area businesses that buy fuel from them, Grant said.

Sales at 12 Spokane-area Divine Shell stations have increased 2 to 3 percent over the same half-year of 2003, said Redmon.

He’s not attributing that growth to more driving, however. He said better marketing, major renovations at Divine’s area stations and a better blend of gasoline sold by Shell account for the growth.

Nationwide, Shell’s seen a 6 percent growth in gas sales compared to 2003, he added.

The total number of Spokane Shell stations has increased in the past six months as the national chain continues changing over stations formerly run as Texaco outlets. Shell Oil acquired Texaco’s marketing and refining divisions in 2001.

Some station operators are not seeing rising or steady sales, however. Damon Borden, who manages two Spokane Flying J Travel Plaza stations, said fuel prices clearly cut into sales since January.

“It’s got to be the higher prices,” Borden said, noting that the Broadway Flying J has seen 7 percent lower sales compared with 2003. The Geiger station, also just off Interstate 90, reported a 12 percent decline. Both stations, Borden noted, have relied in the past on truckers and long-haul drivers. Those drivers likely are fueling up less often in Washington, opting for lower-priced gas or diesel in Montana, he said.