Editorial: Consumers have little control over price of gas in Roseburg

Can you think of any other consumer product besides gasoline that has its price displayed in large numerals on signs all across America all hours of the day and night?

It seems that might heighten the sensitivity to the price of fuel. Drivers can compose theories of gas gouging simply by driving along Interstate 5 and peering at posted gas prices at freeway gas stations from Portland to Medford. They don’t even have to get out of their cars to compare prices.

Yet if those drivers were to reflect on any gas station owners they’ve known, would they consider those individuals rich? Most likely not.

According to a Senate Government Affairs Committee report, the price of gasoline at the pump is determined by “the cost of crude oil purchased by the refiner; the refiner’s processing and distribution costs and profits; the retail distribution, marketing and station operating costs and profits (and sometimes losses); and federal, state and local taxes.”

Supply and demand as well as the oil outlook for the future also play a role in the pricing at nearly every level. Nearly all of those factors are out of the control of the residents of Douglas County, or Oregon. As is the fact that Oregon has no refineries, so the fuel has to be shipped to us, incurring additional transportation costs.

Further complicating the issue is the practice of zone pricing by oil companies. The companies will charge different prices to station owners in nearby geographic areas to confine price competition to the smallest area possible. This is likely a factor in price differences between Douglas and its neighboring counties.

But let’s get back to gas prices within Douglas County. The difference in prices truly can vary based on the operator’s costs. A gas station sitting on a highly valued piece of land within the Roseburg city limits will be assessed more in property taxes than a station on lower-valued land. If it’s outside the city or in another city where tax rates are lower, the tax bill may be reduced as well. Those taxes are a cost of doing business passed onto the consumer, and they’re not necessarily at the same level.

The cost of allowing buyers to use credit cards is another variable. All businesses pay a percentage of the bill on credit card charges. Not only has that cost increased — 3 percent of $4 per gallon is more than 3 percent of $3 per gallon — but station owners who accept more credit cards than cash get stuck with more fees.

If distributors to a couple of gas stations in the same town were to get into a price war, there’s one more factor that affects prices. Any competition helps, so the presence of a Costco with gas pumps would be an advantage for consumers.

For now, chances are Roseburg residents have little control in reining in high gas prices at the pump. Instead, we should be glad we don’t live in Europe, where prices are substantially higher.

We should also focus on what we can do to reduce our fuel costs, whether it’s carpooling, practicing fuel-saving techniques, or driving more fuel-efficient cars.

If none of those options is palatable, we may just have to admit that Roseburg is a wonderful place to live — except for the price of gas and those railroad tracks that bisect the city.